Payment overview
Economics can be tricky, so we're here to help! As a Storefront you will collect payment for Supplier products just like any other order. This includes shipping and taxes. Canal will charge you weekly or monthly (depending on your plan) for the Supplier's commission, Shipping costs, and Canal Fees. You will be left with your commission and taxes collected on the order. The video below will help walk through Flow of Funds with Canal
- Supplier Commission: This is the agreed upon earnings for each product
- Shipping Cost: The amount to be paid to the Supplier to cover shipping costs
- Canal Fees: These fees vary depending on your pricing model
*All transactions are subject to a payment processing fee of (2.5% + $0.30 per transaction) for credit card or (0.4% transaction fee) for ACH
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How am I billed?
Each billing cycle you will see 2 charges associated with your Canal orders.
- Canal Fees: This charge is solely for the cost associated with using Canal and you will be charged through Shopify Billing for these fees. The actual amount will depend on your pricing model.
- Canal Orders: These charges will include the Supplier Commission and Shipping cost to be passed through to the Supplier. Canal will charge the Payment method* you've added to your Canal profile for these charges.
*Canal highly recommends adding the same Payment method that you use for Shopify Billing to the Canal app
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Where can I find my billing history?
Canal provides you with a downloadable CSV for all charges and you can find them by navigating to Reports > Payments. You can learn more about this page here.
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Sales Tax
As the Storefront you will be the merchant of record and collect all taxes paid on orders. No taxes will be passed to Suppliers for their products and you may receive requests from your Suppliers for a Resale Certificate.