Quick Summary
Imagine doubling your product catalog overnight, and that too, without stocking a single product. While it may seem unheard of, Shopify Collective makes it possible.
Shopify Collective fundamentally reshapes online retail, moving it from isolated storefronts to dynamic, collaborative ecosystems. The three words that best describe this model are: Connect, Share, and Sell.
This blog explains what Collective is, how it works, its benefits, challenges, and limitations, how to set it up, and more.
Shopify Collective is a built-in ecosystem to build collaborative partnerships with other verified merchants. With this platform, an e-commerce business can seamlessly source and sell products from other merchants within its own store.
It’s a built-in dropshipping-like model that expands a store’s catalog without holding the inventory.
Retailers/Curators
Suppliers/Brand
Needless to say, if you want to use Shopify Collective, you need an active Shopify plan. Other than that, you need to comply with a few requirements:
If your Shopify store doesn’t comply with these requirements, you CANNOT use Shopify Collective.
Shopify Collective helps merchants scale product variety with zero inventory risk. With it, brand collaborations come quite easily, resulting in higher Average Order Value (AOV) and repeat purchases. You can also strengthen Shopify-native partnerships without any external apps.
Shopify Collective automates a partnership between your store and another brand’s store. Here’s how it works.
When you use the Shopify Collective app to collaborate with another brand, you handle marketing and frontend. Your collaborative partner, on the other hand, handles inventory and shipping.
The Shopify Collective sales channel creates a symbiotic partnership between retailers and suppliers. They can use each other’s strengths to grow their businesses.
These points show that Shopify Collective suppliers and retailers can both benefit from this ecosystem. And if you are leveraging it for your brand, get our Shopify integrations services. We will analyze your brand and integrate the most suitable platforms to amplify Collective’s benefits. That can improve conversions and increase AOV.
But how is this different from traditional dropshipping?
| Factor | Shopify Collective | Traditional Dropshipping |
|---|---|---|
| Supplier Network | Curated, vetted brands on Shopify. | Open market; global suppliers (for example, AliExpress). |
| Product Quality & Branding | Known, often premium brands; products are branded or customizable. | Often generic; quality can be inconsistent. |
| Shipping & Reliability | Fast, domestic shipping from partner brands. High reliability. | Long shipping times (often 2-4 weeks). Higher risk of delays. |
| Integration | Seamless, automated within Shopify | Often requires 3rd-party apps and manual order processing. |
| Business Model | Strategic curation and partnership. | Volume-based, price-driven competition. |
Shopify Collective App builds a curated store with trusted brands. Traditional dropshipping, on the other hand, often focuses on sourcing low-cost products from a global marketplace.
The process of setting up Shopify Collective differs based on whether you’re a retailer or supplier. Once installed, you can use Shopify Collective to import the products and create price lists (or sell products to the retailers, if you are a supplier).
Step 1: Install Shopify Collective App: Navigate to the Shopify App Store and install the Shopify Collective app.
Step 2: Connect With Suppliers: Explore the vetted supplier network and connect with brands that align with your customer base.
Step 3: Import Products from Price Lists: Once connected, browse their available products and import them directly into your store with a single click. Then you can set your own retail price.
Step 4: Sell & Manage Orders: When a customer purchases a Collective product, the order is automatically forwarded to the Supplier for fulfillment. The retailer only manages the customer communication.
Step 5: Optimize Your Shopify Store: Showcase and market these products alongside your own. Also, make sure to analyze the sales data to determine if the strategy is working.
Step 1: Install Shopify Collective: Log in to the app store and install the Shopify Collective: Supplier app to your store.
Step 2: Set Up Your Supplier Profile: Create a compelling profile showcasing your brand and product categories to attract the right retail partners.
Step 3: Create & Share Price Lists: Define your non-negotiable wholesale pricing for retailers. You can create different price lists for other partners or product groups.
Step 4: Connect With Retailers: Approve retailer connection requests. Once connected, your shared products will be available for them to import and sell.
Want help with leveraging the Collective ecosystem for your Shopify store’s benefit? Then consult with a professional Shopify development company.
Despite its streamlined integration, using Shopify Collective introduces specific complexities requiring proactive management.
Product descriptions or images may not sync fully from the supplier.
Solution: Manually review and enhance all imported product pages before publishing.
Slow supplier responses can delay the resolution of order issues.
Solution: Establish preferred communication channels (e.g., Slack, email) and response time expectations up front.
Suppliers may not offer the shipping speeds or methods your customers expect.
Solution: Clearly list the shipping carrier and speed on the product page to manage customer expectations.
“Compare-at” or discount pricing may not display correctly in your Shopify store.
Solution: Manually check and reconfigure the pricing rules for imported products in your Shopify admin.
Suppliers may not only ship to certain countries, limiting your market.
Solution: Filter and partner only with suppliers whose shipping zones match your target customer base.
Retailers cannot control the supplier’s wholesale price increases, affecting margins.
Solution: Set your retail price with a healthy margin buffer to absorb potential supplier price changes.
Despite these challenges, experts leverage Collective effectively and ensure the best results. For that, there are some key tips.
There are a few ways to maximize Shopify Collective’s potential for retailers and suppliers.
While these tips should deliver the right results, you can hire Shopify developers for technical support with the store.
Shopify Collective is more than a mere feature; it’s a network for growth. These anonymized scenarios show how brands leverage it for tangible results.
Lalo is a DTC brand known for its high-quality children’s products. One of its flagship products is play tables. To offer more engaging toys with their play tables, Lalo used Shopify Collective to partner with other suppliers.
This brand offered products that complemented its own, like art supplies and puzzles from other premium brands. That’s why Lalo is popular among teachers and parents alike.
Paceline is a wellness platform that rewards users for staying active. To make the rewards more compelling, Paceline used Shopify Collective to build an entire wellness marketplace. It helped seamlessly onboard and offer products from top health and fitness brands.
The network automates the entire order and fulfilment process. So Paceline could focus on user engagement while their partners handle logistics.
Shopify Collective marks a fundamental shift in e-commerce: isolated competition has transformed into collaborative growth. With this platform, retailers and suppliers share a codependent relationship. The model directly ensures expanded assortment and operational efficiency.
BrainSpate offers you a full-cycle consultation for Shopify Collective. We help you select the right partners, optimize the product pages, and more, to maximize its potential.
So, want BrainSpate’s assistance with your store operations? Then connect with us today!
No, there is no set limit on the number of supplier partnerships or the number of products you can add. Collective offers extensive catalog growth.
The retailer receives the customer’s payment. Shopify Collective then automatically settles the wholesale cost to the supplier and the profit margin to the retailer.
Shopify Collective program is ideal for those looking to expand product offerings without inventory management or fulfillment.
No, it’s an application-based program. Both retailers and suppliers must meet preset criteria and be approved by Shopify beforehand.
When a customer purchases a product from the retailer’s store, the order goes directly to the supplier. The latter will then fulfill directly. The retailer can track its status and handle after-sale queries.
Maulik is an acclaimed E-commerce Business Consultant with comprehensive, all-around experience. He specializes in assisting businesses with critical decision-making that optimizes their operations, drives growth, and ultimately enhances the experience for their end customers. Maulik is the guide businesses turn to for clear strategic direction in the complex e-commerce landscape.
