This article covers the flow of money from your website customers to you and then from you to your vendors.
Marketplace vs Dropshipment
The first step is to decide what kind of entity your store is from a transactional perspective. This will impact the kind of invoice documents and payment calculations needed to settle your vendor payments.
Refer to: Marketplace vs Dropshipment
Money Flow
The money flow will take place as follows:
Customer pays to your bank account: Your website customers will always pay you directly via your payment gateway on your website. Shipturtle has no role in this process and does not handle the money in any way.
Payout calculation: When an order comes into Shipturtle, we look at each product in the order and break down the customer payment into what you retain vs. what you pay to the vendor. This is done as per your configured commission settings. The details are transparent between you and your vendor.
Finalize payout: You review the payout calculations and create a consolidated “commission document” for each vendor.
Payment transfer: You can use our integrated payment providers, like Stripe and PayPal, to transfer money from the app. Optionally, you make the payment outside the app and record the transaction details against each order.
Notes: We are not accounting experts and only enable the money movement. Rely on your accountant's advice to ensure you are following tax guidelines. We only act as integrators and do not handle any of the money ourselves.