How to Handle International B2B Orders as Draft Orders in Shopify

International B2B orders present unique challenges for manufacturers. Different pricing, payment terms, shipping costs, duties, taxes, and compliance requirements make standard checkout flows problematic. Draft orders give you the control needed for complex international wholesale transactions.

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This guide shows manufacturers how to handle international B2B orders as draft orders in Shopify, including when to use draft orders, how to set them up correctly, and workflows that prevent fulfillment errors.

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Why Draft Orders for International B2B?

Standard Shopify checkout works fine for domestic retail. International B2B wholesale requires more control.

Challenges with Standard Checkout for International B2B

Shopify Managed Markets doesn't support B2B orders. If you use Managed Markets for international selling, B2B orders won't work. You must be your own merchant of record.
Pricing complexity. International wholesale customers often have negotiated pricing in their local currency, volume discounts, or special contract rates that standard checkout can't handle automatically.
Payment terms. International B2B customers expect Net 30/60/90 terms, deposits, or wire transfers, not standard checkout payment methods.
Duties and taxes. International shipments require accurate duty and tax calculations. Different customers have different arrangements (DDP, DAP, customer handles duties).
Shipping quotes. LTL freight, ocean shipping, or specialized carriers require custom quotes, not automated checkout rates.
Compliance. Export documentation, commercial invoices, and regulatory requirements vary by country and product.

Draft orders give you control to handle these complexities before finalizing the transaction.

When to Use Draft Orders

All international B2B orders when using Shopify Managed Markets. Managed Markets and B2B don't mix. Switch to draft orders as merchant of record.

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Orders requiring custom quotes. Freight shipping, special handling, complex product configurations.
Orders with negotiated pricing. Contract pricing, volume discounts, or special customer rates not reflected in your B2B catalog.
Payment term flexibility. Deposits, partial payments, wire transfers, or extended terms beyond standard Net 30.
Complex duty/tax situations. DDP (Delivered Duty Paid) where you pay duties, DAP (Delivered at Place) where customer pays, or hybrid arrangements.
Orders needing approval. Credit checks, export compliance verification, or high-value order reviews before processing.

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Prerequisites

Before creating international B2B draft orders, ensure you have:

Shopify Plus plan (B2B features are Plus-only)
B2B customers set up with companies and locations
Payment terms configured (Net 30/60/90, deposits if needed)
International tax settings configured for your merchant of record countries
Shipping carriers set up for international fulfillment
Export compliance process documented

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Step-by-Step: Creating International B2B Draft Orders

Step 1: Navigate to Draft Orders

In Shopify admin, go to Orders
Click Drafts tab
Click Create order

Step 2: Select B2B Customer and Location

Critical step: Select both customer AND company location.

In customer search, find your B2B customer
Click customer name to see company locations
Select the specific location for this order

Why this matters: Selecting the company location automatically applies:

Customer-specific pricing
Negotiated payment terms
Tax exemptions or custom tax rates
Saved shipping addresses

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Without selecting location, you'll lose B2B context and use retail pricing.

Step 3: Add Products

Click Browse to search your product catalog
Add products and quantities
Pricing automatically reflects B2B rates for the selected location

Product pricing options:

Lock pricing - Maintains quoted price even if product price changes later
Unlock pricing - Updates if you change product price before customer pays

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For international quotes, lock pricing to honor your quote regardless of currency fluctuations or price updates.

Step 4: Configure International Shipping

If you're the merchant of record:

In shipping section, click Add shipping
Select Custom shipping rate
Enter accurate international shipping cost (from your freight forwarder quote)
Add description: "International freight to [Country]"

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If using Shopify Managed Markets shipping service:

Even as merchant of record, you can assign a Managed Markets shipping service to calculate duties and taxes. This gives you Shopify's rate calculations while maintaining control as merchant of record.

In order settings, ensure merchant of record is set to your store (not Managed Markets)
Select Managed Markets shipping service for duty/tax calculation
Review calculated duties and taxes
Adjust if needed based on customer's duty arrangement (DDP vs DAP)

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Common shipping scenarios:

DDP (Delivered Duty Paid): You pay all duties and taxes. Include these in the draft order total.
DAP (Delivered at Place): Customer pays duties/taxes on delivery. Note this on commercial invoice, don't charge in draft order.
Customer's freight account: They handle shipping entirely. Set shipping to $0, add note about their freight account number.

Step 5: Handle Duties and Taxes

As merchant of record, you control duty/tax handling:

Option 1: Charge duties/taxes upfront (DDP)

Use Managed Markets shipping service to calculate
Add duties/taxes as line items or in shipping
Customer pays everything upfront
You remit duties/taxes to customs

Option 2: Customer pays at delivery (DAP)

Don't include duties/taxes in draft order
Add note: "Customer responsible for duties/taxes on delivery"
Ensure commercial invoice reflects DAP terms
Carrier collects from customer

Option 3: Tax exemption

If customer provides valid VAT/GST number
Apply tax exemption in draft order
Attach copy of tax exemption certificate
Customer imports duty-free (where applicable)

Step 6: Set Payment Terms

For Shopify Plus B2B customers:

In payment section, select payment terms
Choose Net 30, Net 60, Net 90, or custom terms
For deposits, set deposit percentage (e.g., 50% deposit, balance Net 30)

International B2B payment term considerations:

Wire transfer: Add note with wire instructions, set longer payment window for international bank transfers.
Letter of credit: Set custom terms matching L/C timing, add L/C reference number in notes.
Deposit required: Set deposit percentage, balance due before shipment or Net 30 after delivery.

Step 7: Add Discounts (if applicable)

Click Add discount
Enter percentage or fixed amount
Note reason: "Volume discount - Q1 contract pricing"

For international orders, discounts might include:

Volume/quantity discounts
Contract pricing adjustments
Currency adjustment credits
Freight allowances

Step 8: Add Order Notes and Tags

Internal notes (staff only):

Export compliance check status
Duty/tax arrangement (DDP/DAP)
Freight forwarder tracking
Special handling requirements
Credit approval reference

Tags for workflow automation:

international-order
b2b-draft
country-[CODE] (e.g., country-UK)
payment-net60
shipping-dap
export-approved

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Tags help with filtering, reporting, and automated workflows via Shopify Flow.

Step 9: Send Invoice or Accept Payment

Option 1: Send checkout link

Click Send invoice
Customer receives email with secure checkout link
They pay online (credit card, or payment terms if configured)
Draft order automatically converts to order after payment

Option 2: Accept payment directly

Click Collect payment
Process payment via terminal, phone, or mark as paid (for wire transfers)
Draft order converts to order immediately

Option 3: Save as quote

Click Save
Don't send invoice yet
Reference draft order number in your quote to customer
Send invoice later when customer approves

For international B2B, often send draft order as quote first, customer approves, then you send payment link.

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Switching from Managed Markets to Merchant of Record

If you use Shopify Managed Markets for international orders, B2B orders require you to be merchant of record instead.

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How to change merchant of record in draft order:

From your Shopify admin, go to Orders > Drafts
Click the draft order you want to edit
In the Markets section of the draft order, click the Merchant of record drop-down menu
Select your own store as the merchant of record instead of Managed Markets
Click Save to apply the change

By doing this, you take responsibility for duties, taxes, and compliance for that order, as Managed Markets will no longer handle these aspects. You can still use Managed Markets shipping service for duty/tax rate calculation while maintaining control as merchant of record.

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Why this matters:

Managed Markets handles compliance and tax remittance for retail
B2B orders need your control over pricing, terms, tax arrangements
Being merchant of record lets you offer Net terms, custom pricing, tax exemptions

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Implications of being merchant of record:

You collect duties/taxes from customer (or arrange DAP)
You remit collected duties/taxes to destination country
You handle export documentation and compliance
You can offer B2B payment terms and pricing

For manufacturers with existing export processes, this is usually preferable. You maintain control and customer relationships.

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Automating Draft Order Creation for International B2B

Creating draft orders manually for every international B2B order is time-consuming. Automate where possible.

Method 1: Quote Request Form to Draft Order

Setup:

Create "Request International Quote" form on your B2B site
Customer submits: products, quantities, destination, shipping preferences
Form submission creates task or notification
Staff creates draft order from submitted info
Send draft order invoice as quote

Best for: Lower volume, highly customized orders, complex freight quotes.

Method 2: Shopify Flow Automation

Scenario: Auto-convert international B2B orders to draft orders

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Flow setup:

Trigger: Order created

Conditions:

Customer is B2B customer (associated with a company)
Shipping country is not your domestic country

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Actions:

Create draft order for the B2B customer (requires Flow-compatible app or custom app with Shopify API access)
Tag original order: converted-to-draft-do-not-fulfill
Cancel or put original order on hold to prevent fulfillment
Send notification to staff to review draft order
Send draft invoice to customer for payment

Requirements:

Shopify Plus plan (for Shopify Flow access)
Custom app or third-party Flow connector app capable of creating draft orders via the Shopify API (Flow itself does not natively create draft orders)

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Implementation notes:

The custom app uses the Draft Order API to create the draft order with all original order details
Staff reviews draft order to add international shipping costs, duties/taxes, and payment terms before sending invoice
Original order is tagged and held to prevent accidental fulfillment

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Best for: Higher volume, standardized international B2B orders, automated workflows with manual review step.

Method 3: n8n Automation (Alternative to Shopify Flow)

Scenario: Auto-convert international B2B orders to draft orders using n8n

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n8n is an open-source workflow automation platform that can connect to Shopify via webhooks and API calls. This is a cost-effective alternative to Shopify Flow if you don't have Shopify Plus.

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n8n workflow setup:

Trigger: Shopify webhook - Order created

Workflow steps:

Receive order data from Shopify webhook
Check if customer has company assigned (B2B customer)
Check if shipping country is international
If conditions met, call Shopify Draft Order API to create draft order with:
1. Customer information
2. Line items from original order
3. Shipping address
4. Notes indicating international B2B conversion

Add tag to original order: converted-to-draft-do-not-fulfill
Update original order to on-hold status
Send email notification to staff with draft order link
Optionally send draft invoice to customer

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Requirements:

n8n instance (self-hosted or cloud)
Shopify API access (custom app with Draft Orders and Orders permissions)
Webhook configuration in Shopify

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Advantages over Shopify Flow:

Works with any Shopify plan (not just Plus)
More flexible workflow logic and data manipulation
Lower cost for self-hosted option
Can integrate with other systems (ERP, email, CRM)

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Best for: Businesses without Shopify Plus, those already using n8n for other automations, or needing more complex workflow logic.

Method 4: Custom Checkout App

Advanced option:

Build or customize B2B checkout experience
For international orders, route to draft order creation instead of standard checkout
Customer sees quote, approves, then pays via draft invoice
Fully automated end-to-end

Requires: Development resources, custom app.

Best for: High volume international B2B, complex pricing logic, full control over checkout experience.

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Managing International B2B Draft Orders

Order Fulfillment Workflow

Before fulfilling international B2B draft orders:

Verify payment - Confirm payment received or Net terms approved
Check export compliance - Verify product can ship to destination, denied party screening complete
Generate commercial invoice - Accurate product descriptions, HS codes, values, Incoterms (DDP/DAP)
Arrange shipping - Book freight, generate shipping labels, provide tracking
Complete export documentation - Certificate of origin, export license if needed, other country-specific docs

Tag orders through workflow:

payment-confirmed
export-cleared
docs-generated
ready-to-ship

Common Fulfillment Mistakes

Shipping before payment received. International wire transfers take days. Verify funds cleared before shipping.
Wrong Incoterms on commercial invoice. DDP vs DAP must be clear or customer gets unexpected duty bills.
Missing HS codes. Customs requires accurate HS codes for duty calculation. Missing or wrong codes cause delays.
Incorrect declared values. Must match invoice. Too low = customs issues, too high = customer pays excess duties.
No denied party screening. OFAC, export control lists must be checked. Shipping to denied parties has serious consequences.

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Best Practices for International B2B Draft Orders

Lock Pricing for Quotes

When sending draft order as quote, always lock pricing:

In draft order, check Lock product prices
Quoted price won't change even if you update product prices later
Customer gets exactly what you quoted

Currency fluctuations and product price changes shouldn't affect agreed quotes.

Document Everything

Use draft order notes field:

Quote reference number
Customer PO number
Negotiated terms summary
Duty/tax arrangement
Freight forwarder details
Special instructions

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Good documentation prevents fulfillment errors and customer disputes.

Create Draft Order Templates

For repeat international B2B customers:

Create draft order with common products
Save as template (via notes or duplicating previous orders)
Duplicate and modify for new orders
Saves time, ensures consistency

Use Tags for Reporting

Consistent tagging enables reporting:

All international B2B: international-b2b
By country: country-UK, country-DE, country-AU
By payment terms: net30, net60, deposit-required
By duty arrangement: ddp, dap, tax-exempt

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Filter and export orders by tags for analysis, compliance reporting, or accounting.

Set Up Approval Workflows

For high-value or high-risk international orders:

Draft order created
Tag pending-approval
Manager reviews: credit check, export compliance, pricing
If approved, tag approved-to-invoice, send invoice
If rejected, tag rejected, notify customer

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Solution:

Check payment gateway accepts international payments
Verify customer's payment method supported (some gateways don't support all countries)
For payment terms, ensure customer approved for credit (manual approval in Shopify admin)
For wire transfer, mark as "payment pending" and manually mark paid when received

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Integration with ERP Systems

Many manufacturers use ERP systems (SAP, NetSuite, Acumatica, Dynamics). Draft orders need to sync.

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Typical workflow:

Draft order created in Shopify
Tagged b2b-draft or international-order
Integration app syncs draft order to ERP as quote
ERP adds freight quotes, calculates margins, checks inventory
Sales rep approves in ERP
ERP sends back to Shopify (updates draft order or creates new one)
Shopify sends invoice to customer
After payment, converts to order
Order syncs to ERP for fulfillment

Key integration points:

Draft orders sync as quotes, not orders
Order only created after payment
Inventory reserved when draft created or when order confirmed (depends on your process)
Pricing updates from ERP reflected in draft order

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For ERP integration details, see our guide on Shopify ERP Integration.

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Alternative: International B2B Without Draft Orders

Not ready for draft orders? Alternatives exist, though with limitations:

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Manual offline process:

Customer requests quote via email/phone
You create quote in ERP or spreadsheet
Send PDF quote
Customer approves, sends PO
You create Shopify order manually or via API
Less integrated, but works for low volume

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Standard checkout with approval workflow:

Customer completes standard checkout
Order tagged requires-approval
Shopify Flow holds fulfillment
Staff reviews, adjusts if needed, then fulfills
Risk: Customer already paid, changing price requires refund/additional charge

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Third-party B2B apps:

Apps like Wholesale Gorilla, SparkLayer
Some handle international orders better than native Shopify
Often include quote-to-order workflows
Additional cost, may not integrate with your ERP

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Draft orders offer most control and integrate natively with Shopify Plus B2B features.

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Conclusion

International B2B orders as draft orders give manufacturers the control needed for complex wholesale transactions. You can manage custom pricing, payment terms, duty arrangements, and compliance while maintaining Shopify's order workflow benefits.

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Key takeaways:

Use draft orders for all international B2B when using Managed Markets
Always select customer AND company location for B2B pricing
Switch to merchant of record to enable B2B features
Lock pricing when sending quotes
Document duty/tax arrangements clearly
Tag consistently for reporting and workflow automation
Integrate with ERP for seamless quote-to-order flow

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Start with manual draft order creation to understand the workflow. As volume grows, automate with Shopify Flow or custom integrations. The upfront setup investment pays off in reduced errors, faster processing, and better international B2B customer experience.

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Additional Resources & Sources

Official Documentation:

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Related ShopFab Guides:

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Need help setting up international B2B draft orders? Whether you're configuring Shopify Plus B2B features, integrating with your ERP, or building automated workflows, proper setup is critical for smooth international operations.

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