How to Pay Your Shopify Suppliers: A Step-by-Step Guide

Managing a Shopify store means juggling many tasks. One of the most critical is paying your suppliers accurately and on time. An efficient payment process protects your cash flow, strengthens vendor relationships, and keeps your inventory moving.

This guide breaks down how to pay suppliers on Shopify. We will cover native tools, external payment methods, and best practices for US-based businesses. You'll learn how to choose the right solution for your specific needs, whether you work with domestic or international partners. Signing up to Wise Business allows access to BatchTransfer which you can use to pay multiple invoices in one go.

Key Methods to Pay Suppliers from Your Shopify Store

Shopify offers several ways to manage and pay suppliers. The best method depends on your business model, your supplier's location, and their own payment systems. Let's explore the main options.

1. Shopify Bill Pay: A Native Solution

Shopify Bill Pay is a bill management tool integrated into your Shopify admin. It allows you to receive, manage, and pay business bills from a central location. You can pay vendors using your bank account, credit card, or your Shopify Balance account .¹

To pay a supplier through Shopify Bill Pay, follow these steps: ²

1. From your Shopify admin, go to Finances > Bill Pay.
2. Add a new bill by forwarding an email invoice or uploading it manually.
3. Shopify's system will automatically pull details like the supplier, amount, and due date.
4. Click on the bill and select Schedule payment.
5. Choose your preferred payment method (e.g., bank transfer, credit card).
6. Review the details and confirm the payment.

When Shopify Bill Pay is Most Effective

This solution works best for paying domestic suppliers in USD. It’s ideal for merchants who want to consolidate their accounts payable within the Shopify ecosystem. If you already use Shopify Balance, it creates a seamless workflow.

2. Shopify Collective: Automatic Payments

Shopify Collective is a feature that allows you to sell products from other Shopify stores, which act as your suppliers. The payment process is largely automated. When a customer buys a Collective product from your store, the payment is processed automatically between you and the supplier store.

Here's how payments work with Shopify Collective: ³

1. Connect with a supplier's store through the Shopify Collective app.
2. The supplier sets their wholesale price, and you set your retail price.
3. When a customer places an order, you are automatically charged the wholesale cost.
4. The payment is transferred directly to the supplier's Shopify account.

When Shopify Collective is Most Effective

Shopify Collective is designed for a specific use case: sourcing products from other US-based Shopify stores. It removes the manual work of paying invoices, making it a great option for businesses that want a hands-off, integrated dropshipping model.

3. Paying Suppliers Outside of Shopify

For many businesses, especially those working with international suppliers or using traditional purchase orders, payments must be handled outside of Shopify. Shopify's platform is primarily built to accept payments from customers, not to send payments to external vendors.

When you create a purchase order in Shopify, for instance, it helps you track inventory but doesn't facilitate the payment itself. You must arrange payment separately with your supplier. Common methods include: ⁴

• Bank Transfers (ACH & Wire): A standard way to pay domestic and international vendors directly from your business bank account.
• Third-Party Payment Platforms: Services specializing in domestic or global business payments.
• Credit Cards: A straightforward option if your supplier accepts them.

When Using Other Payment Methods is Most Effective

External payment methods are necessary for most dropshipping models and for any business sourcing goods from international suppliers. This approach gives you the flexibility to negotiate terms, handle different currencies, and work with vendors who are not on the Shopify platform.

How to Add and Manage Supplier Information in Shopify

Keeping your supplier information organized is crucial for efficient operations. Shopify provides tools to store vendor details, even if payments are made externally.

Setting Up Suppliers for Purchase Orders

If you manage your own inventory, you can add suppliers to Shopify to associate them with products and purchase orders. This helps you track who you buy from and what you have on order.

To add a supplier for purchase orders:⁵

1. Go to Products > Suppliers in your Shopify admin.
2. Click Create new supplier.
3. Enter the supplier's name and contact information. You can add multiple contacts and addresses.
4. Set default payment terms (e.g., Net 30) and currency to streamline purchase order creation.
5. Click Save.

This creates a profile for your supplier, but remember, you still need to pay them through an external method.

Connecting Suppliers with Shopify Collective ⁶

For Shopify Collective, you don't add suppliers in the same way. Instead, you connect with another Shopify store. This is done by sending an invitation through the Collective app using the Discovery feature. Once the other store accepts, their products can be imported, and the payment connection is established automatically.

Choosing the Best Payment Method for Your Shopify Suppliers

Selecting the right payment method requires weighing several business factors. There is no single "best" way, only the one that fits your workflow and budget.

Consider these trade-offs:

• Domestic vs. International: Shopify Bill Pay is excellent for US-based vendors. For international suppliers, you'll need an external solution that can handle currency conversions and cross-border transfers efficiently.
• Cost vs. Speed: Domestic ACH transfers are often cheap but can take several days. International wire transfers can be faster but often come with high fees and poor exchange rates. Specialized platforms often provide a better balance of speed and cost.
• Integration vs. Capability: Native Shopify tools offer seamless integration but have limited functions. External platforms require a separate login but provide powerful features like batch payments for paying 50 vendors at once, multi-currency accounts, and better reporting.
• Business Model: A dropshipping business working with multiple international vendors has different payment needs than a boutique using a single domestic supplier. Choose a method that scales with your operations.

FAQ for Paying Suppliers on Shopify

What is the difference between vendor and supplier in Shopify?

In Shopify, the terms "vendor" and "supplier" are often used interchangeably. "Supplier" is more commonly used when referring to the company you purchase inventory from, especially in the context of purchase orders.¹ "Vendor" is a broader term that can include any entity you pay for goods or services.

How to pay an invoice on Shopify?

You can pay an invoice using Shopify Bill Pay if your supplier is in the US and you've added the bill to the system. For most other invoices, especially from international suppliers or for purchase orders, you must pay them outside of Shopify using a bank transfer or a third-party payment service.^{1, 2}

How do I add a supplier in Shopify?

You can add a supplier by navigating to Products > Suppliers in your Shopify admin and clicking Add supplier. This is for tracking and creating purchase orders, not for direct payments.¹

How does payment work on Shopify?

Shopify's primary payment system, Shopify Payments, is for receiving money from your customers.⁷ Paying your suppliers is a separate accounts payable function. You can use Shopify's Bill Pay for some domestic bills or an external payment method for all other supplier invoices.

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to 140+ countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

Use Wise Business >>