Getting paid for Managed Markets orders
Your transactions for fulfilled and eligible Managed Markets orders are collected and combined to a payout on the 1st, 8th, 15th, and 22nd day of each month. A payout is sent to your bank account within 1-3 business days, and might take an additional 3 days to become available in your bank account. If your payout fails, then the payout is attempted again within 72 hours and you receive a notification upon failure.
You receive payouts in USD, and only for fulfilled and eligible orders. For more information, refer to Making your orders eligible for payouts.
On this page
Getting paid
View your payouts transactions and learn how you can handle refunds, pre-orders, taxes and duties.
View your payouts transactions
You can view your payouts information and payout schedule in your Shopify admin. The transaction data contains a full breakdown of all costs and fees for each fulfilled order. The breakdown of fees includes the following information:
- taxes
- duties
- remitted value-added tax (VAT)
- shipping costs
- shipping label price adjustments
- Managed Markets processing fee
Managed Markets transactions are displayed as Flow Commerce on your bank account and credit card statements.
Steps:
- From your Shopify admin, go to Finance > Payouts.
- Click Transactions.
- Click More filters.
- Click Payment method.
- Select Managed Markets.
Refunds
The process for Managed Markets refunds depends on whether an order is canceled:
- If an order isn't canceled, then you can refund any part of the order. The order is eligible for payout after the order is fulfilled.
- If an order is canceled, then you must refund the entire processed amount to your customer. After the transaction is complete, the refund is included in the next payout. Instead of withholding payment on the canceled order, consider offering the customer a discount code for their next purchase.
Managed Markets transaction fees, taxes, and duties aren't refunded to you if the order is already fulfilled. Refunds for any part of the order are possible within 180 days. Orders in a chargeback state can't be refunded until the chargeback is resolved.
Learn more about how to refund Managed Markets orders.
Taxes and duties
Taxes and duties are charged at the time the package is fulfilled. If you refund an order that you already fulfilled and shipped, then Managed Markets doesn't refund any fees, duties, and taxes.
Digital products and goods payouts requirements
Digital products can include products, such as digital gift cards, online courses, podcasts, and sound effects and music. When you sell digital products using Managed Markets, your businesss needs to meet the following requirements:
- A digital order must contain both a digital product and a physical product to be paid out. If your order contains only digital products, then you automatically become the merchant of record for the order and this order isn't considered as a Managed Markets order.
- For your digital products, make sure to deselect This is a physical product on your product pages. If you don’t change this setting on digital products, then they’re processed as physical products.
- Your digital products need to be stocked at a location that's based in the United States.
Pre-orders
Pre-orders aren't paid until you fulfill your order. You receive payouts only for fulfilled orders. If you use pre-orders in your business, then consider using a tag to identify a pre-order. Action required payout status is displayed next to your order until you fulfill your order.
Capturing payments with apps or automations
If you use first-party or third-party apps to capture payments, such as automation flows for Managed Markets orders, then you should double check that your authorized payments have been captured. You can review authorized orders in your Shopify admin by filtering your orders.
Steps:
- From your Shopify admin, go to Orders.
- Click the Search and filter button.
- Add the filters Payment status: Authorized and Merchant of record: Managed Markets.
Managed Markets shipping labels
Managed Markets shipping labels ensure correct duties handling, seamless customs clearance, specialized shipping rates, and faster transit times.
If you fulfill an order using non-Managed Markets shipping labels, then duties collected at checkout are released to you as part of your payout. You might need to refund the duties amount to your customers. When using non-Managed Markets shipping labels, your customers are at risk for being double-charged for duties or their package can be held at customs.
Calculating Managed Markets payouts
You can use the following calculation to calculate Managed Markets payouts:
Total order cost – (remitted tax/VAT + remitted duty + processing fee + currency conversion fee) = Amount paid
For example, when an order is placed for a shirt for a total cost of €150 EUR, the total breakdown of an order is the following:
The currency conversion rate on the day of the transaction is used to calculate your payout amount into your currency. In this example, 150 EUR is a converted total of 158.97 USD (1 USD = 0.94364EUR).
What the customer pays
- a shirt costs €120 EUR
- duties cost €5 EUR ($5.30 USD withheld)
- taxes and VAT cost €10 EUR ($10.60 USD withheld)
- international shipping costs €15 EUR
In this example, your customer pays €150 EUR to Global-e. Global-e remits the following costs:
- the cost of €10 EUR tax/VAT to the government
- the cost of €5 EUR duties to the customs agencies
What you pay
- The transaction fee of $10.33 USD (6.5% of the total order value) is paid as the Managed Markets processing fee.
- The currency foreign exchange (FX) fee of $3.62 USD (2.5%) is paid for currency conversion. The FX fee is calculated on the total order value ($158.97 USD).
You can add these amounts to what the customer pays by making price adjustments.
After all these costs are taken out, you receive $128.77 USD.
You need to decide how much you want to charge your customer for shipping. Managed Markets includes shipping rates recommendations for better conversion. The shipping fee that you collect from your customer is included in your payout. The cost of the shipping label you purchase is deducted from your future payout and is displayed in your order's timeline.
Making your Managed Markets orders eligible for payout
Unfulfilled Managed Markets orders aren't included in payouts and have the Action required payout status until you fulfill your orders. Orders are considered fulfilled when a carrier and tracking number are assigned to your order in Shopify, and your shipping label is scanned by the carrier. If your order isn't processed for payout, then you might need to take additional action to make your order eligible for payout.
Review the following table to learn more about reasons why an order might be blocked for payout, gain insights into potential reasons for payout delays, and what actions you need to take:
| Reason a payout is blocked | Action to take | Description |
|---|---|---|
| You haven't fulfilled and shipped the order | Fulfill and ship the order | Your shipping label needs to be scanned by the carrier. If you drop off your package at a post office, then it might take up to 48 hours before the order is scanned. If you use a third-party logistics provider, then you need to provide a carrier name, tracking number, and a URL. If your order is a pre-order, then your order isn't eligible for payout until it's fulfilled. Consider using a tag to identify pre-orders. |
| Your order doesn't have tracking information | Add tracking information to the order | To add a tracking number for a fulfilled order, click Add tracking in your order. All orders must have a valid tracking number, with a carrier name and activity displayed in that tracking number. If the tracking information only includes a URL, then the payout is blocked. This might happen when you use a third-party logistics company and you don't input a tracking number. |
| No carrier activity is available | Contact the carrier for more information | When no carrier activity is available, you need to contact the carrier directly to ensure that your order was picked up and to verify correct tracking information. If you drop off your package at a post office, then it might take up to 48 hours before the order is scanned. Before a package is scanned by a carrier, it's marked as Action required. Allow processing time for the scan, as it might vary based on your drop-off method. In some cases, the package seems to be in transit because it must travel to the carrier's transit hub before the order is scanned by the carrier. During this time, the order might still have the Action required status. |
| You haven't refunded the entire canceled Managed Markets order | Refund the entire order | If an order is canceled, then you need to refund the entire order. Partially refunded orders aren't eligible for payout. All funds that were processed need to be returned to the customer. |
Review Managed Markets orders with action required status
You can review and filter your Managed Markets orders that have the Action required status from your Shopify admin.
Steps:
- From your Shopify admin, go to Finance > Payouts.
- Click Transactions.
- Click Payouts status, and then select Action required.
- Optional: To filter Managed Markets orders, do the following steps:
- Click More filters.
- Click Payment method.
- Select Managed Markets.
Negative payouts
A negative payout occurs when the costs that your store has incurred are greater than the amount of sales in a specific payout period, usually as a result of refunds or chargebacks. When a negative payout occurs, funds are withdrawn from the bank account that you use for your Managed Markets payouts.
For example, your store makes $2,000 USD worth of sales in a payout period. During this period, you incur a $30 USD fee for shipping label purchases, and a $40 USD fee for duties and import taxes. You also issue $3,500 USD in refunds during this period, resulting in a negative payout of -$1,570 USD (2,000 - 30 - 40 - 3,500 = -1,570). This amount is withdrawn from your bank account on your next payout date.
If a negative payout can't be processed, then the transaction is retried and might result in a hold on your Managed Markets and Shopify Payments payouts until the issue is resolved. Refer to the following reasons that a negative payout might fail.
Invalid or closed bank account
If your bank account isn't valid or is closed, then your payouts are put on hold. A banner is displayed on your payouts page indicating that funds could not be withdrawn from your bank account, and provides a link to the failed negative payout. To resume payouts, you must update your banking information.
Steps:
- From your Shopify admin, go to Settings > Payments.
- In the Shopify Payments section, click View payouts.
- Click View failed payout.
- Review the information on the viewed payout, and then click Update bank account details.
- Update your bank information.
After your bank information is updated, then the balance is carried forward and the payout is retried on the next payout date: the 1st, 8th, 15th, or 22nd of the month. If the payout succeeds, then the payout hold is removed from your account.
Insufficient funds
If funds for a negative payout can't be withdrawn from your bank account due to insufficient funds, then a banner is displayed on your payouts page. The banner indicates that funds could not be withdrawn from your bank account, and provides a link to the failed negative payout. The balance is carried forward and the payout is retried on the next payout date: the 1st, 8th, 15th, or 22nd of the month. To avoid a payout hold, ensure that your bank account contains sufficient funds for the negative payout.
If three attempts (including the initial attempt) to withdraw a negative payout fail, then your payouts are put on hold. Attempts to withdraw payment continue until an attempt succeeds or a payout period includes sufficient sales to offset the negative payout.
Bank couldn't process payment
If funds for a negative payout can't be withdrawn from your bank account due to your bank not processing a transfer, then a banner is displayed on your payouts page. The banner indicates that funds could not be withdrawn from your bank account, and provides a link to the failed negative payout. The balance is carried forward and the payout is retried on the next payout date: the 1st, 8th, 15th, or 22nd of the month. To avoid a payout hold, contact your bank to resolve the issue.
If three attempts (including the initial attempt) to withdraw a negative payout fail, then your payouts are put on hold. Attempts to withdraw payment continue until an attempt succeeds or a payout period includes sufficient sales to offset the negative payout.