Shopify Collective

very dissapointed in search filters and follow up options for prospective suppliers. Impediment to doing more business with you.

AWFUL. Absolutely zero understanding from Shopify on how UK VAT and Tax works. Listing collective suppliers that offer 10% margin on goods, yet really there charging you 10% to sell there product! So yeah amazing business model, losing money for selling suppliers products because at the last minute they add 20% vat onto the charge to the retailer. What on earth is going on. Its disgusting that they have no solution in place for this. Sam Hampton of shopify support suggested we paid for a bulk editor like "Matrixify" or "Bulk Price Editor" that might be able to solve the issue. So shopifys are basically telling you collective in the UK is a broken model. I cannot believe they have not fixed this issue and automatically added 20% on the price to any store that is collecting tax. In response to Shopify response - I can confirm this issue is not resolved, you built this with USA in mind and not the UK. Its a mess. Fix it.

Saves me tons of time with 3rd party sales

Absoluate best offers on this site - to be able to search many different brands, to offer to sell on your platform! Absoalutetl divese platofrm offering so much to explore ! Fabulous!

Love that we can grow our ecommerce site from our brand to offering other brands. Thank you Shopify by making an accessible marketplace.

The difference between cost and retail of one product is 20 % which is exactly what the supplier charges... so I sold an item and made a loss as they took 20% plus extra on postage......RIP OFF

I've had several problems with shipping on the collective. Please don't sell if you can't supply your product.

Very easy to use

After implementing Shopify Collective and starting real sales, a fundamental accounting and tax problem appears that Shopify does not clearly communicate, and which in practice makes this model unworkable for EU businesses. Once you connect to a supplier: you sell products directly to end customers, payments are received by your store, Shopify automatically splits the revenue based on a predefined “margin”, but you do not receive any purchase invoices from the supplier that would document the cost of goods sold. Key tax consequence From a tax authority’s perspective: a cost exists only if there is a valid invoice, no invoice = no deductible cost. As a result: 100% of the sales revenue is treated as taxable income, authorities assume the goods were acquired “for free”, income tax is calculated on the full turnover, not on the margin. The margin in Shopify Collective is an illusion The margin shown in Shopify Collective: has no tax or accounting validity, is not recognized as a cost, is only an internal platform settlement. In practice: you transfer part of the revenue to the supplier, you still pay fees, payment costs, ads, etc., but income tax is charged on the full sales amount. This means the merchant ends up subsidizing each sale instead of making a profit. High risk for EU merchants Shopify Collective operates like dropshipping or a marketplace, but: provides no supplier purchase invoices, offers no self-billing mechanism, does not issue consolidated monthly cost invoices, shifts all tax risk onto the merchant. Under EU tax rules: Without a cost invoice, there is no cost of goods sold — regardless of real money flows. Conclusion Shopify Collective may look attractive from a technical standpoint, but: it is not aligned with EU tax and accounting requirements, it prevents proper income tax reporting, it creates serious financial and compliance risk for merchants. I strongly discourage using Shopify Collective if you operate a business in the EU and want to stay compliant and profitable.

It’s easy to find suppliers that fit my brand, and the instant imports option makes bringing products into my shop effortless. Thanks to Shopify Collective, I’m able to build a store that truly reflects my standards and vision.