Collabica FAQ

How does Collabica work?
Collabica is a solution that allows brands with an online store to cross-sell between different stores.
Once the brand downloads the application, it can choose the role of supplier, retailer, or both during the registration process. The registration steps are listed below.
The brand fills in the information about whether they are interested in acting as a supplier, retailer, or both. In case they do not want to choose one of the two roles, supplier or retailer, they can skip this step in the registration process. If they change their mind later, they can come back to complete this step.

1. Select products to sell as a supplier
If the brand wants to make its products available to sell on other online stores, it selects the items it wants to export to Collabica from its catalogue.
If it does not wish to be a supplier, the brand can skip this step.

2. Set the commission payable to the retailer
If the brand wants to act as a supplier and sell its products in other online stores, it determines the commission that the retailer will earn for each sale made of the supplier’s items in the retailer’s online store.
This step is only available to brands that have chosen to list their products in the Collabica directory for other brands to sell them directly in their online storefronts in exchange for a commission.
By default, if the brand does not wish to act as a supplier, this step will not appear in the registration process.

3. Search for partner brands
Brands that wish to act as retailers and sell third-party products in their online store will find a catalogue of suppliers is the Collabica directory.
In the directory, in addition to seeing the commission of each supplier brand, the brand can filter by country of origin, price range, industry, or search directly by brand name.
The retailer selects the supplier with which it wishes to form a cross-store sales partnership. A notification is automatically sent to the supplier, which it accepts or rejects.

4. Import products to the retailer’s store
If the supplier accepts the partnership request, the retailer can import the products it wishes to sell in its online store.
The selected products are imported as a new collection, adapting to the style of the retailer’s storefront. Stock levels and product prices are synchronized with the supplier brand’s online store information in real-time.
When a product from the supplier brand is sold in the retailer’s online store, an order is automatically created in their Shopify dashboard, just like any other sale.

At the same time, this information is sent to the supplier’s store so they can start the process of order fulfilment.

In addition to integrating both stores and synchronizing stock and pricing, Collabica automates the fulfilment processes between the partner brands, facilitating sales management and commission payments.
What is cross-store selling?
Cross-store selling is a marketing strategy that involves offering the customer products from other brands, complementary or related to their existing basket when they are ready to make a purchase.These are integrated into the existing collections in the brand’s online store or listed as recommendations alongside the items the customer originally wanted to buy. The objective of this co-branding technique is to increase the revenues of both businesses by combining and building on the shared strengths and values of each brand. In this case, both share similar audiences. In this partnership, brands can act as retailers, selling third-party products directly in their online store, and supplier can offer their products to third-party online stores. Perfectly complementary processes for those who wish to do both.
What are the benefits of cross-store selling?
This type of partnership, in which both brands complement each other, makes it possible to reach more potential audiences and increase consumer trust, reducing marketing costs and increasing revenues.

The retailer expands its product portfolio, increasing its Average Order Value (AOV) thanks to the additional sales generated through this partnership.

In turn, the supplier gains a new sales channel at zero marketing cost, reducing their Customer Acquisition Costs (CAC).
Do I have to be a retailer and supplier, or can I choose one?
With Collabica Brand Partnerships, we're here to support your store and your growth strategies. You can select the role that suits your store best, making you a retailer, supplier, or both.
What is the customer experience?  
Customers will be able to shop products from your favorite brands without leaving your site. A small tag on your product detail page lets your customers know the product will be "fulfilled by our friends at BRAND NAME." The purchase is made through the retailer's website, just like any other order. After purchase, the supplier will send the product directly to the customer, and the supplier will handle any support questions that the customer may have about their purchase.
The retailer and supplier share the contact information for these customers so that they can both provide an excellent customer experience and enjoy a new customer!
How are payments and orders handled?
The process is automated according to the following contractual relationships:

1. Contractual relationship between customer and retailer: the customer pays the retailer, who confirms the order following the same procedure as with any other product in their online store: issuing a purchase confirmation reference, sending an email with the information of the purchase made, etc. That is, the retailer is the one who issues the purchase confirmation to the customer according to the terms and conditions published on their online store.

2. Contractual relationship between retailer and supplier: the supplier receives full payment for the purchase and pays the retailer their sales commission.

In other words, the supplier issues an invoice to the retailer for the sale of their product in the retailer’s online store, according to the commission agreed upon in the partnership.

The supplier is also responsible for the payment method used to pay the retailer.
How are partners selected?
Suppliers are listed in the Collabica Directory, and you'll also be able to see the products they have available to you. When you try to add a partner's product to your store, you'll either be sent to that brand for approval, or you will be able to sale their products right away through automatic approval.
Who decides the commission for each sale?
The supplier brand is the one that decides the commission it will offer to the retailer for each sale of its products made in the retailer’s online store.

When thinking about the retailer sales commission, the supplier should take into account that it is they, the supplier, who is responsible for shipping the order.
How is the stock managed?
The supplier brand manages the stock. That is, it is responsible for shipping orders and managing returns and exchanges.

In the event of any problem, the brands should contact each other to find a solution that benefits both parties.
Does the supplier brand have to pay the Shopify commission for the sales of its products made in the retailer’s store?
No.

It is the retailer’s responsibility to pay the Shopify commission according to their contracted plan.
How does the supplier process orders?
An automatic process is initiated once the customer purchases a product from the supplier in the retailer’s store.

The steps to be followed by the supplier are the same as those usually followed when they receive an order in their own online store.

Once the customer has made the payment, an order is created and is directly visible in their Shopify dashboard with the customer’s information to ship the package.

In the event of any incident, the supplier may contact the retailer.