How to Set Up Shopify Collective in Your Store? [2024]

In 2024, expanding your Shopify store’s offerings and reaching a broader audience has become easier with Shopify’s new features. Shopify Collective is one such powerful tool designed to help merchants collaborate with other stores and grow their business. This feature allows Shopify store owners to add products from other businesses directly to their store.

Setting up Shopify Collective is a straightforward process, and this guide will provide you with a step-by-step approach to getting started. Whether you are a supplier looking to expand your reach or a retailer wanting to offer more products, Shopify Collective can be an excellent way to boost sales, improve efficiency, and provide more value to your customers.

What is Shopify Collective?

Shopify Collective is a new platform introduced by Shopify that enables businesses to collaborate by selling products from other Shopify stores directly on their own websites. This innovative solution helps retailers expand their product offerings without the need to handle additional inventory or manage complex fulfilment processes. By simply connecting with suppliers who are part of Shopify Collective, retailers can display their partner’s products in their store, enabling customers to browse and purchase them seamlessly. The technical aspects are all handled by Shopify which makes the process smooth and efficient for both retailers and suppliers.

For suppliers, Shopify Collective offers a new distribution channel and an opportunity to reach a wider audience without significant marketing efforts. They can list their products on Shopify Collective, allowing retailers to feature these products in their stores, boosting visibility and sales. When a customer places an order for the supplier’s product from a retailer’s store, the order information moves to the supplier who can then handle the processing and fulfilling part of it. This collaboration benefits both parties, as it helps retailers diversify their product offerings and suppliers increase their sales and market presence.

What Are the Eligibility Requirements for Shopify Collective?

To set up Shopify Collective in your store, there are specific eligibility requirements that you must meet. 

Shopify Collective is currently available only for stores located in the US. 

In addition to geographic location, your store must be selling in USD (U.S. dollars) to participate. 

This currency restriction ensures that the transactions between retailers and suppliers are seamless and consistent within the Shopify platform.

One of the other requirements is that Shopify Payments must be enabled in your store. It’s Shopify’s integrated payment solution, to access Shopify Collective. Additionally, your store must have generated at least $50,000 in revenue over the last 12 months. For those looking to join as supplierss, you must also be active on the Shop app. If your store meets all these criteria, you are eligible to set up Shopify Collective and begin reaping the benefits of this feature.

How to Set Up Shopify Collective in Your Store [Quick Steps]

A. Suppliers

1. Sign in: Start by logging into your Shopify store using your admin credentials.
2. Access the Shopify Collective Page: Head to the Shopify Collective section from your Shopify dashboard. If your store meets the eligibility criteria, you will see an option to get started with Shopify Collective.
3. Receive and Accept the Invitation: Shopify may send you an email if you are eligible, inviting you to join Shopify Collective. Click the ‘Install Shopify Collective’ button that you can find in the invitation email. If you don’t see this email, you can manually check your eligibility on the Shopify Collective page.
4. Add the Sales Channel: In your Shopify admin panel, click ‘Add Sales Channel’ from the left-hand menu to integrate the Shopify Collective sales channel into your store.
5. Set Up Pricing and Product Requests: After setting up the sales channel, you can add a button on your website (such as ‘Become a Distributor’) to allow retailers to request to sell your products. Next, create price lists for the products you want to offer retailers, ensuring you set prices that cover your costs and allow for retailer profit margins.

B. Retailers

1. Install Shopify Collective: Like suppliers, retailers need to log into their Shopify admin and go to the Shopify Collective page.
2. Connect with Suppliers: After installing the app, you can begin connecting with suppliers. You can do this either by accepting connection requests from suppliers or by sending invitations to connect with suppliers that interest you.
3. Browse and Import Products: Once you have connected with suppliers, you will be able to browse their product catalogue within the Shopify Collective app. Select the products that fit your store’s offerings.
4. Set Your Pricing: Shopify Collective allows you to set your own profit margins, ensuring that you are compensated for selling the supplier’s products in your store. Adjust your pricing based on the supplier’s retail prices to find a balance between competitive pricing and profitability.

By following these steps, both suppliers and retailers can set up Shopify Collective in their stores and start benefiting from this collaborative sales channel. Whether you’re looking to sell products from other stores or have your products featured in new retail channels, Shopify Collective makes it easy to expand your business opportunities.

Benefits of using Shopify Collective

1. Increased Sales and Market Reach

One of the biggest benefits of Shopify Collective is the ability to increase your sales by reaching a broader audience. Retailers can expand their product offerings by collaborating with other Shopify stores, giving them access to a variety of new products that attract more customers. Suppliers, in turn, benefit from a wider distribution network, increasing their sales without the need for extensive marketing efforts.

2. Improved Inventory Management

Retailers no longer have to worry about maintaining or managing additional inventory when they partner with suppliers through Shopify Collective. The supplier handles all the logistics, including inventory, fulfillment, and shipping, while the retailer simply adds the products to their store. 

3. Reduced Financial Risk

Shopify Collective helps retailers test new products without taking on the financial risk of upfront inventory purchases. Since retailers do not have to stock these products, they can experiment with different product lines and trends with little to no investment. If a product doesn’t perform well, it can easily be removed from the store without any loss from unsold stock.

4. Enhanced Customer Experience

Retailers can quickly adjust their product offerings based on customer demand, ensuring that they provide exactly what their audience is looking for. This flexibility allows retailers to meet the needs of a diverse customer base, increasing satisfaction and encouraging repeat visits to the store.

5. Streamlined Operations

Automated systems ensure that orders are processed smoothly, leaving businesses with more time to focus on growth and customer service. For retailers, this means no time-consuming inventory tracking or complex logistics to manage.

6. No Additional Costs

One of the most appealing aspects of Shopify Collective is that there are no extra subscription or setup fees. As long as your store meets the eligibility criteria, you can begin using Shopify Collective without incurring any additional costs. This makes it an affordable way for both retailers and suppliers to expand their reach and grow their businesses.

Conclusion

Setting up Shopify Collective in your store offers an excellent opportunity to expand your product offerings and reach a wider audience, whether you’re a retailer or a supplier. For retailers, it provides access to a diverse range of products without the need to manage inventory, while suppliers can extend their reach by featuring their products in multiple stores. Shopify Collective simplifies the technical process of product syncing, order fulfillment, and pricing management, making it a seamless way to collaborate with other businesses and increase sales.

By following the steps outlined above, you can quickly and effectively implement Shopify Collective in your store, whether you’re aiming to sell products from other suppliers or have your own items featured in additional retail spaces. This feature is a valuable tool for growing your Shopify store, driving sales, and improving operational efficiency in 2024 and beyond. With no additional subscription fees and a streamlined setup, Shopify Collective.