Shopify has recently rolled out a game-changing feature—Shopify Collective. Designed to help Shopify merchants work together, it lets stores sell products from other Shopify stores without the hassle of stocking and shipping.
This new tool is ideal for businesses looking to scale while keeping operations lean. (Plus, it’s totally free to use if you meet the eligibility criteria).
Here’s everything you need to know about Shopify Collective, how it works, and how it can help grow your online store. Spoiler alert: we’ll also talk about why Craftybase is also a must for managing your inventory as you scale.
What is Shopify Collective?
Think of Shopify Collective as your direct gateway to collaboration. Retailers can expand their product offerings by adding items from other Shopify suppliers without worrying about fulfillment. On the flip side, suppliers get greater exposure and access to new markets—all through an automated system run by Shopify.
This isn’t your basic dropshipping arrangement. Shopify Collective puts control into the hands of both retailers and suppliers by syncing inventory and streamlining payments. Here’s how it benefits both sides of the equation.
What’s in it for Retailers?
No More Stocking Worries: Want to diversify your store? Add products directly from suppliers without managing inventory.
Real-Time Syncing: Shopify automates inventory updates so you never oversell something that’s out of stock.
Easy Discovery: Search for suppliers and products through the Collective app and even invite others to collaborate.
Why Suppliers Should Join
More Exposure: Scale your business by reaching customers through another retailer’s storefront.
Flexible Pricing: Control margins and retail prices depending on the partnership.
Efficient Operations: You fulfill the order, and Shopify handles payment and order notification.
How It Works
Getting started is simple! Here’s a step-by-step breakdown:
- Eligibility & Setup
First, it’s important to make sure your shop meets these requirements:- You are based in the U.S. and using USD.
- You’ve made $50,000 USD in sales in the last 12 months.
- Shopify Payments is activated (if you’re not already using it, activate it in your Shopify dashboard!).
Suppliers also need to be active on the Shop app and meet Shop Merchant Guidelines.
Once eligible, download the Retailer App or the Supplier App (or both, if you want the flexibility).
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Connect & Collaborate
Invite partners or browse the app to discover more shops. Retailers can view supplier product details, pricing, and margin options, while suppliers decide how much they want to share and with whom. -
Negotiate & Set Your Terms
Before products go live, the retailer and supplier agree on shipping rates and return policies. Suppliers set margins upfront, so retailers know exactly what they stand to earn. -
Sync Inventory Automatically
Once a retailer imports a product, Shopify keeps everything synced in real time. No manual updates, no headaches. -
Sell & Fulfill
When a customer makes a purchase, Shopify notifies both the retailer and the supplier. The supplier handles order prep and shipping, while the retailer gets tracking details to share with the customer. Everyone gets paid once the order is fulfilled.
Take Control of Your Inventory with Craftybase
While Shopify Collective simplifies inventory syncing with partner stores, managing your overall inventory across platforms can get tricky as you scale. That’s where Craftybase comes in.
Craftybase gives you an all-in-one solution to monitor your inventory, manage raw materials, and track product costs in real time. Whether you’re importing products through Shopify Collective or managing direct sales, Craftybase ensures you always have accurate stock levels and insights into your COGS (Cost of Goods Sold).
Additionally, Craftybase’s Shopify inventory management integration features allow you to track costs and inventory levels in real time, linking material expenses to orders for precise cost-of-goods calculations. By consolidating order, inventory, and tax data in one place, Craftybase simplifies your accounting processes and provides peace of mind during audits.
Why use Craftybase alongside Shopify Collective?
Total Inventory Visibility: Know exactly how much stock you have across all sales channels, including your Shopify store.
Batch Tracking: Stay compliant with product traceability by recording every batch of raw materials.
Scalability: Perfect for businesses looking to scale while maintaining full control of their inventory.
It’s the perfect pairing for businesses using Shopify Collective, offering you ultimate flexibility and confidence in your operations.
Shopify Collective FAQ
1. Who can use Shopify Collective?
Eligible Shopify stores must be based in the U.S., sell in USD, and have made at least $50,000 USD in sales over the last year. Shopify Payments must also be activated. Suppliers must additionally be active on the Shop app and meet Shop Merchant Guidelines.
2. Can I use Shopify Collective with any pricing plan?
Yes, Shopify Collective is free to use with any Shopify plan. There are no extra fees or commissions—you keep what you earn.
3. Can I be both a retailer and a supplier?
Absolutely! You can download both apps and switch between the two roles as needed. It’s a great option for businesses looking to expand their offerings while also leveraging existing products.
4. How are orders managed?
When a customer purchases a product listed through Collective, Shopify notifies both the retailer and the supplier. The supplier handles fulfillment and shipping, while Shopify keeps everyone updated on tracking details.
5. How can I make my shop more collaborative?
Enable the “discoverable” mode in the Collective app, so other shops can find and connect with you. Be proactive by inviting partners who align with your brand values.
6. Do I need additional tools to manage my inventory?
Using a dedicated inventory management platform like Craftybase can help you stay on top of your entire stock, including products imported through Shopify Collective. It’s especially useful if you manage complex inventories or multiple sales channels.
Final Thoughts
Shopify Collective is an exciting new way for ecommerce entrepreneurs to collaborate and grow. Whether you’re a retailer looking to expand your offerings or a supplier aiming for wider exposure, this tool makes it easy and efficient to work together.
Pair it with an inventory powerhouse like Craftybase, and you’ve got all the tools you need to scale with confidence.
Are you ready to team up and take your store to the next level? Set up Shopify Collective today and explore Craftybase for total inventory management.
