Payouts

Payouts represent the remittance of earnings after they’ve been collected by the payment method, specifically Shopify through the billing API. Monitoring payouts helps you understand when and how much revenue you will receive from your app’s earnings.

What are Payouts?

In the case of apps that get paid through the Shopify billing API, Shopify bundles earnings into payouts twice per month:

1st to 15th of the month: Remitted 5 business days later.
16th to end of the month: Remitted 5 business days later.

Revenue in payouts is always represented on the date that the merchant pays their Shopify bill.

Mantle representation of Payouts

In the Mantle representation of payouts, we have several statuses of revenue:

Billed subscriptions: Subscriptions charged to the merchant that have not yet been paid but should be paid on the date represented.
Billed usage: Usage charges billed to the merchant that have not yet been paid out but should be paid on the date represented.
Paid: Billings that have been transacted by the payment method.
Upcoming: Billings that will happen between the current date and the date the merchant pays their bill within the payout window.
Due: Billings that should have been transacted but no confirmation of transaction has been received.

Why are Payouts important?

Payouts are important because they provide a clear view of when and how much revenue you will receive from your app’s earnings. Here’s why this metric matters:

Revenue tracking: Understanding payouts helps you track your expected revenue and plan your finances accordingly.
Cash flow management: Knowing when payouts will occur allows you to manage your cash flow more effectively.
Financial health: Monitoring the status of your billed and paid earnings gives you insights into the financial health of your business.
Performance analysis: Analyzing payout data helps you evaluate the performance of your app and identify trends in revenue collection.

Actions you can take with Payouts insights

Improve revenue forecasting: Use payout data to improve your revenue forecasting and financial planning.
Monitor billing status: Keep an eye on the status of billed subscriptions and usage to ensure timely payments.
Enhance cash flow management: Plan your expenses and investments based on the expected payout schedule.
Address due payments: Follow up on due payments to ensure that all expected revenue is collected.
Analyze revenue trends: Regularly review payout data to identify trends and make informed decisions about your business strategy.
Engage upcoming customers: Reach out to customers with upcoming charges to ensure they are satisfied and likely to continue their subscriptions through the billing cycle.

By understanding and regularly monitoring your Payouts, you can gain valuable insights into your revenue collection process and financial health. This metric helps you make informed decisions that drive growth, improve cash flow management, and ensure long-term success for your business.