Shipturtle supports two billing models. In the marketplace model, each vendor invoices the customer directly and you earn a commission. In the dropshipment model, you sell under your own name and the vendor invoices you for the goods. The two look identical to a shopper but record revenue and generate invoices differently. Read this before you decide how money and invoices should flow in your store, because the choice affects payouts, tax, and reporting.
Who this is for
- Merchant: You decide which billing model fits your business and configure commissions or margins accordingly.
- Vendor: In the marketplace model you invoice the customer and receive a payout. In the dropshipment model you invoice the merchant.
- Customer: Buys from the vendor (marketplace) or from you (dropshipment). The difference is invisible at checkout.
How the two models differ
Marketplace model
The customer buys from the vendor. The vendor invoices the customer, and you earn a platform fee or commission from the vendor.
Worked example: a vendor lists an item that sells for $150. The customer pays $150 to the vendor. You charge the vendor a platform fee of $50 (tax may apply by region), so the vendor keeps $100 minus any applicable tax.
Shipturtle assigns each order to the vendor, tracks the commission, and generates the vendor payout and platform-fee report, keeping vendor and customer transactions separate.
Dropshipment model
The customer buys from you. You invoice the customer, and the vendor invoices you for the goods supplied, less your margin. You own the delivery experience and returns.
Worked example: you sell an item to the customer for $150. The customer pays you $150. The vendor invoices you $100 for the goods. You keep the $50 margin.
Shipturtle manages the order flow, inventory sync where applicable, and the invoice documents that match dropshipment billing.
Running both at once
You can run both models in the same store, for example a marketplace with a few dropshipped products or premium vendor inventory. Each order follows the billing rules of its assigned model.
FAQs
Which model should I choose?
It depends on who you want to be the seller of record. Choose marketplace if vendors invoice customers and you take a commission. Choose dropshipment if you invoice customers and the vendor supplies you.
Does the customer see a difference at checkout?
No. The shopping and checkout experience is the same. The difference is in who invoices whom and how revenue is recorded behind the scenes.
Can one store use both models?
Yes. You can assign different products or vendors to different models and run them side by side.
Does Shipturtle handle the tax and invoicing for me?
Shipturtle generates the invoice documents and payout reports for each model, but tax rules and revenue recognition vary by country. Confirm your setup with a qualified accountant before going live.
Troubleshooting
Revenue is recorded against the wrong party. Check which model the order was assigned under. Marketplace orders record the sale against the vendor. Dropshipment orders record it against you. Reassigning the model on future orders corrects the reporting going forward.
Vendor payout and platform-fee amounts look wrong. Open the commission rule for that vendor and confirm the rate. In the marketplace model the platform fee is what you deduct from the vendor. In dropshipment the vendor's invoice to you drives the figure.
Related articles
- Choose between B2C and C2C user interface — pick the vendor experience that matches the model you choose here.
- Commission & Payout — set the commission rates and payout rules that each model relies on.
If you’re stuck, reach us at team@shipturtle.com or open a ticket on the support page.