Why is Shopify deducting shipping costs without reimbursement?

SpaceMutters
Visitor
3 0 0

shopify deducted money for shipping but i did not get the money for shipping and i accidently payed printiful for shipping so shopify owes me money for shipping.     

Replies 5 (5)

Imogen
Shopify Staff
1544 187 275

Hi there, @SpaceMutters. Thank you for taking the time to reach out to the Shopify Community today with your situation regarding Printful and shipping! My name is Imogen. I'm happy to take some time to chat with you regarding your situation!

 

In situations like this, where you are using a third party fulfillment service and product supplier, it's important to know that Shopify doesn't not pay this entity to produce your product, and ship it out. The responsibility of payment for these services falls to the merchant.

 

This means that you are responsible for purchasing the shipping for the product, as well as paying the cost to the supplier to produce and package that product on your behalf. The role that Shopify plays in this string of movements is providing you a platform to take orders, and providing you the funds from your order via Shopify Payments. If you're using a third party payment gateway, then this gateway takes over delivering the funds from the order to you.

 

For people first getting started with PoD services, the merchant often will cover the first few orders production and shipping costs on their own, as they haven't had enough orders to provide them with an amount of funds that can cover these costs. Once the merchant has had some more orders, the money from the orders starts coming into their bank account, and then that money can be used to pay for the shipping and production costs. Does this make sense?

I hope this clears up any confusion you have regarding the role that Shopify plays here. If you still have some questions, please follow up with me here and let me know!

Imogen | Social Care @ Shopify 
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SpaceMutters
Visitor
3 0 0

money was deducted from the consumer for shipping but i never got the money for shipping and i paid the third party for shipping because i thought i would get the money for shipping from shopify that was deducted from the consumer.

 

can we move over to email so i can include screen shots.   

Imogen
Shopify Staff
1544 187 275

Hi again, @SpaceMutters! Thank you for taking the time to follow up with me here!

So what you've described in your recent reply sounds like expected behaviour for third party shipping and fulfillment. Your customers will purchase their order on your store, and pay for the product and shipping. This money is then deposited into a payout, which will be delivered to you based on the payout schedule you use. The 'deduction from Shopify' you're mentioning is likely Shopify taking the money from the order and putting it aside to be sent to you as a payout.

Once you receive this payout, you are more than welcome to use the funds to pay for the shipping and product of the product your customer ordered! However, depending on your payout schedule, you may not receive this payout before you want to fulfill this order for your customer. To be clear, Shopify's payouts aren't going to be integrated directly with your supplier - your payment method is attached to your supplier account, and your payment method is used to pay for product shipping and production. For example, if you have a credit card attached to your account with your supplier, your credit card is what is used to pay for product production and shipping. Once you start receiving these payouts, you can start using the funds from your payouts to pay for the cost of the shipping/production but either depositing those funds into the payment method account you have, or paying down your balance on your payment method with those funds.

For many folks doing dropshipping or third party fulfillment for the first time, they may get confused on this workflow. Essentially, customer pays for order, payment goes to a payout, payout is delivered to you, and then you can use that payout to pay for shipping/production. If this is your first order, then you may not yet have received your payout, so you may need to cover the cost of shipping/production yourself, and then offset that cost with the payout you will be receiving. Does this make sense?

We're unable to direct merchants to email over the Community Forums, but if you feel you need an additional explanation of this process, then you can use this link to speak to our AI Assistant, or one of our Authenticated Support Advisors, regarding things. They can also access your account (something I can't do here on the forums) so they can see additional context into the situation that I can't here. However, I've chatted with many business owners around this same topic, and everything you've described sounds par for the course!

Imogen | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
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SpaceMutters
Visitor
3 0 0

how could i speak to someone that i can send screenshots to.

Imogen
Shopify Staff
1544 187 275

Hi again, @SpaceMutters. Thanks for following up!

 

You are actually able to attach screenshots to your replies here in the Shopify Community. When you hit the 'reply' button, you can click the camera icon to attach any photos:

Re- shipping payment - Shopify Community 2024-02-06 14-42-16 (1).png

 

I hope this helps you in providing me with any screenshots that you feel would be helpful in resolving this issue!

Imogen | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog