Payout Vendors – Manually and Automatically by Stripe Connect

When your business grows, handling payouts to vendors and managing finances can become challenging. But don’t worry—Selldone makes it easier. Once you set your store’s Business Model to Marketplace in Shop Dashboard > Settings > Business Model, you’ll unlock powerful vendor payout options.

First of all, unlike other platforms, Selldone does not collect your revenue or limit how you can handle payouts. You have two main options:

1. Automatically payout to vendors: Automatically split customer payments and send them directly to vendors (e.g., via Stripe Connect).
2. Manually payout to vendors: Pay out vendors yourself, for example via Stripe Connect or a simple bank transfer.

Automatically Payout to Vendors

In the automatic mode, your chosen payment method must support advanced payout options. Stripe fully supports this, so you’ll need to add the Stripe Payment Method and enable the Stripe Connect feature. (See details below.)

How multi-vendor marketplace payouts work

1. Customer pays for an order: When a customer completes a purchase, the money goes into your Stripe account (or other payment method you use).
2. Order and Fulfillments: A main order is created in your marketplace (visible in your Orders tab). For each vendor’s product in that order, a separate Fulfillment is created. Vendors can see these in their Vendor Panel > Vendors tab.
3. Vendor Wallet Credit: Selldone creates a virtual wallet for each vendor (the first time it’s needed) and credits their portion of the payment into that wallet. This is for accounting purposes—no actual money moves yet.
4. Stripe Connect Transfer: If Stripe Connect is enabled and the vendor has connected their Stripe account to your Stripe Connect, Selldone automatically transfers the vendor’s share to their Stripe account. If not, it simply keeps the accounting record.
5. Manual Payouts if Needed: If a vendor isn’t connected to Stripe, you can manually transfer funds later via Stripe Connect or a bank transfer. Manual payouts involve you sending the money outside Selldone and then recording it for accurate bookkeeping.

An Automatic Payout Example

Order Paid via Stripe:

Fulfillment Creation:

Selldone creates fulfillment for the vendor.

Selldone then charges the vendor’s virtual wallet with +70DKK (for example), representing the vendor’s earnings from that order.

Because the vendor previously connected their Stripe account, Selldone automatically transfers 70DKK from your Stripe account to the vendor’s Stripe account. You’ll see a -70DKK payout record, showing the funds leaving their virtual wallet (accounting) and moving to their Stripe account (real money).

What if some items are canceled?

If items are canceled, first “Refund Order” in the Payouts section of the order. (You can see this button in the previous image.) This refund action works on the virtual wallet level only—no real money moves just yet. It’s purely for accounting purposes.

Next, if you need to take back real money from the vendor, you do a Reversal Transfer. This “reverses” a previous payout, effectively retrieving money from the vendor’s Stripe account and adjusting their virtual wallet to keep everything balanced.

When you perform a Reversal Transfer, Selldone takes money back from the vendor’s Stripe account and credits their virtual wallet accordingly. Why credit their wallet? Because of accounting standards: imagine a scenario where you refund 50DKK of a fulfillment. First, you remove 50DKK from the vendor’s wallet (refund operation), and if needed, you also reverse transfer 50DKK from the vendor’s Stripe account back to you. This reversal adds +50DKK to their virtual wallet, balancing the books to zero. Essentially, it ensures the vendor never truly received that 50DKK since it was both added and removed through these steps.

Multi-vendor marketplace accounting can be complicated, but Selldone makes it easy—almost like a miracle!

Manual Payout

Manual payout is simple: You transfer funds to the vendor outside the system (e.g., via bank transfer or cash) and record it in Selldone so accounting stays accurate and up-to-date.

 To do this, go to Shop Dashboard > Marketplace > Payout and click on TopUp Vendor Account.

This feature keeps a detailed record of all transactions for both you and your vendors. Payments can be done manually through bank transfers or automatically by providers supporting split payments (like Stripe). With manual payouts, you have complete flexibility.

By default, the Bank Transfer option is always available for manual payouts. If a vendor has connected their Stripe account, you’ll also see the Stripe Connect option, allowing you to transfer real money directly from your Stripe to the vendor’s Stripe. For example, if you pay out 500DKK to a vendor, it will be recorded in your Stripe dashboard:

What is the “Wallets” Tab in the Marketplace?

The Wallets tab shows all transactions in vendors’ virtual wallets. If a transaction was created by a fulfillment and hasn’t yet been paid out, you’ll see a PAYOUT button next to it.

Clicking the PAYOUT button auto-fills the payout form, making the process easy. This same payout option is also available on the order page. Choose whichever method is most convenient for you.

IMPORTANT: The vendor’s virtual wallet in your marketplace is separate from user wallets in Selldone. They are not linked.

Setting Up Stripe

For automatic payouts and convenient manual transfers, you need to configure Stripe. Your business model should be set to “Multi-vendors Marketplace” to use these features.

For more details, check out 5 Easy Steps for Automating Vendor Payouts with Stripe Connect in Your Multi-Vendor Marketplace.

Go to Shop Dashboard > Accounting > Gateways, then enable Marketplace features in the Gateway setting > Marketplace automated onboarding & payout.

IMPORTANT:
You must manually enter your public and secret Stripe keys. You cannot use Selldone auto Stripe Connect keys. Retrieve these keys from your Stripe account.

Step 1 | Add OAuth Redirect

Activate OAuth login in the Stripe Connect settings. We use this URL for onboarding your vendors. You can see your store callback URL in the Stripe Gateway settings of your Selldone account.

Step 2 | Set Client ID

Enter your Client ID (found in Stripe > Settings > Connect Settings after scrolling down). Paste it into the designated field in Selldone.

Step 3 | Check Keys

You’ve enabled Stripe Connect, so please ensure you’ve entered both the Public and Private keys. You’ll find them in Stripe > Developers > API keys.

Important:

• You cannot use Connect if your Stripe account is managed by another service, including Selldone. You must create a new Stripe account directly in your Stripe dashboard.
• If you have other Stripe gateways, enable “Connect Mode” use the same Client ID for each.

Payout | Set Manual

Set your Stripe payout to “manual” to retain control over your funds and vendor payouts. Go to Stripe > Settings > External payout accounts and scheduling to do this.

Now Selldone can create an onboarding link in the Vendor’s Panel.

The vendor will click “Connect Now” and complete the onboarding on Stripe.com.

Done! You can now accept payments from customers and easily pay out to vendors.

Vendor’s Panel Payments Records

Vendors can view the full transaction and payout history in their panel. They can see every transaction happening in their virtual wallet by visiting Vendor Panel > Payment.

For a detailed look at payouts and Reversal Transfers, they can go to Vendor Panel > Dashboard > My Wallets and click on “Show Details”.

That’s it! Selldone simplifies multi-vendor accounting and payments, giving you and your vendors peace of mind.

Download the Payout Vendors Handbook.