Net 90, Deposits, and Other Unique Payment Terms on Shopify

Introduction

In the world of B2B e-commerce, the one-size-fits-all approach to payments is a relic of the past. As a manufacturer or a B2B enterprise, your customers aren't just making impulse buys; they're making strategic purchasing decisions that are integral to their own operations. Offering flexible and familiar payment terms like Net 30, Net 90, or the ability to take a deposit isn't just a convenience—it's a critical component of a successful B2B e-commerce strategy. This article will guide you through why unique payment terms are essential, what the customer experience looks like, and how you can implement these features in your Shopify store, whether you're on a standard plan or Shopify Plus.

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Why Your B2B Business on Shopify Needs Flexible Payment Options

Imagine you're a manufacturer of high-quality industrial components. Your best customers are other businesses that order large quantities but operate on their own financial cycles. They're used to traditional purchasing processes that involve purchase orders and payment terms. If your online store only accepts immediate payment via credit card, you're creating a significant barrier to entry for these valuable clients.

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Offering payment terms like Net 30 (payment due in 30 days) or Net 90 (payment due in 90 days) aligns with their procurement processes and cash flow management. It builds trust and demonstrates that you understand their business needs. Similarly, for large, custom orders, requiring a deposit upfront can secure the commitment while allowing your customer to manage their finances effectively.

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In short, flexible payment options can lead to:

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• Increased Customer Loyalty: Accommodating your customers' preferred payment methods fosters stronger, long-term relationships.
• Higher Average Order Value: When businesses can defer payment, they are often more comfortable placing larger orders.
• Competitive Advantage: In a competitive market, offering favorable payment terms can be the deciding factor for a potential customer.
• Streamlined Sales Cycles: By integrating traditional B2B payment practices into your e-commerce platform, you reduce friction and make it easier for customers to buy from you.

A User Journey: The B2B Buyer's Experience

Let's walk through a typical user journey for a B2B customer on a Shopify store that offers unique payment terms:

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1. Login and Personalized Experience: Sarah, a purchasing manager, logs into her company's account on your Shopify store. Because she is a registered B2B buyer, she immediately sees her company's specific pricing and product catalog.
2. Effortless Ordering: Sarah adds a large quantity of components to her cart for an upcoming production run. The total is substantial, and her company's policy is to pay invoices within 60 days.
3. Seamless Checkout: At checkout, instead of being prompted for a credit card for the full amount, Sarah sees a "Payment Method" section that includes her pre-approved "Net 60" payment term. She selects this option.
4. Order Confirmation and Invoicing: Sarah completes the checkout process without entering any payment information. She receives an order confirmation, and an invoice with the Net 60 terms is automatically generated and sent to her company's accounting department.
5. Convenient Payment Portal: A few weeks later, a member of the accounting team can log into their customer portal on your Shopify store, view the outstanding invoice, and pay it directly online via ACH transfer or credit card.

This seamless and professional experience is what modern B2B buyers expect. Now, let's explore how you can make this a reality on your Shopify store.

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How to Implement Unique Payment Terms in Shopify

The method you choose to implement unique payment terms will largely depend on your Shopify plan. Here's a breakdown of the most common approaches:

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For Shopify Plus Users: The Integrated B2B Solution

If your business is on Shopify Plus, you have access to a powerful suite of built-in B2B features that make offering unique payment terms straightforward.

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Key Features of Shopify Plus for B2B Payments:

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• Company Profiles: You can create unique profiles for your B2B customers, assigning them specific payment terms, price lists, and product catalogs.
• Net Payment Terms: Directly within a company's profile, you can assign payment terms such as Net 7, Net 15, Net 30, Net 45, Net 60, or Net 90. These terms will automatically be available to the customer at checkout.
• Deposit Requirements: For any payment term, you can require a percentage-based deposit at the time of checkout.
• Automated Invoicing: Invoices are automatically generated with the correct due dates based on the assigned payment terms.
• Customer Portal: B2B customers have a dedicated portal where they can view their order history, manage their addresses, and, most importantly, view and pay their invoices.

Implementation Steps (Shopify Plus):

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1. Enable B2B Features: From your Shopify admin, you'll need to set up your B2B functionality.
2. Create Company Profiles: Navigate to the "Companies" section in your Shopify admin and create profiles for your B2B customers.
3. Assign Payment Terms: Within each company profile, you can select the desired payment terms from a dropdown menu and optionally add a deposit requirement.
4. Customize Notifications: You can customize your email notifications for order confirmations and invoices to clearly communicate the payment terms and due dates.

The Shopify Plus B2B solution is the most robust and seamless way to handle unique payment terms, providing a truly professional experience for your customers and a streamlined workflow for your team.

For Standard Shopify Plans: A Manual but Effective Approach

If you're not on Shopify Plus, you can still offer unique payment terms, though it will require a more manual process using Draft Orders.

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How Draft Orders Work for Payment Terms:

A draft order is an order that you create on behalf of a customer. It allows you to set custom pricing and, crucially, specify payment terms.

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Implementation Steps (Standard Shopify Plans):

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1. Create a Manual Payment Method: First, you'll need to create a manual payment method. Go to Settings > Payments > Manual payment methods and create a custom payment method. You could name it "Pay by Invoice" or "Net 30 Terms." In the "Additional details" section, you can provide instructions for your customers, such as "Your order will be confirmed, and an invoice with payment instructions will be sent to you."
2. Customer Places an Order: The customer would then select this "Pay by Invoice" option at checkout. This will create an order in your system with a "Payment pending" status.
3. Create a Draft Order: To formalize the payment terms, you will then create a draft order.
   • Go to Orders > Create order.
   • Add the customer and the products from their original order.
   • In the "Payment" section, select "Payment due later."
   • Choose the appropriate payment terms (e.g., "Within 30 days").
4. Send the Invoice: From the draft order, you can then email an invoice to the customer. This invoice will contain a link to a secure checkout page where they can eventually pay the balance.

While this method works, it's less automated and requires more administrative overhead. It's a viable starting point for businesses new to B2B e-commerce on a standard Shopify plan.

Leveraging Third-Party Apps

Regardless of your Shopify plan, the Shopify App Store offers a variety of third-party apps that can enhance your B2B capabilities. These apps can provide more granular control over payment terms, wholesale pricing tiers, and customer-specific access.

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Popular B2B and Wholesale Apps Often Include Features For:

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• Advanced Net Terms Rules: Set different terms for different customer groups.
• Credit Limits: Establish credit limits for your B2B customers.
• Wholesale Registration Forms: Allow businesses to apply for a wholesale account on your store.
• Quick Order Forms: Enable bulk ordering from a single page.

When considering a third-party app, carefully evaluate its features, pricing, and compatibility with your existing theme and other apps.

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Conclusion: A Strategic Imperative for B2B Success

In the evolving landscape of B2B e-commerce, meeting your customers where they are is paramount. Offering unique payment terms like Net 30, Net 90, and the flexibility of deposits is no longer a "nice-to-have" but a strategic necessity. By implementing these options, you're not just facilitating a transaction; you're building a foundation of trust and partnership that will drive repeat business and fuel your growth.

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Whether you leverage the powerful, integrated B2B features of Shopify Plus or start with a more manual approach on a standard plan, taking the step to offer flexible payment terms will undoubtedly set your Shopify store apart and position your business for long-term success in the competitive B2B arena.