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Auto parts wholesalers operate on thin margins and high-volume transactions. Your customers (repair shops, dealerships, body shops) expect familiar B2B payment terms, not credit card checkout flows.
If you're moving your auto parts wholesale business to Shopify, you need to understand how payment terms work, especially Net 30, Net 60, and purchase order management.
This guide covers exactly how to implement these payment terms on Shopify for auto parts wholesalers.
The "net" indicates the full invoice amount is due (no early payment discount applies).
For auto parts wholesalers, Net 30 is the industry standard. Larger customers (dealership networks, fleet maintenance operations) may negotiate Net 60 or Net 90 terms based on purchase volume or relationship history.
Shopify handles payment terms differently depending on your plan:
If you're on Shopify Plus, you can assign payment terms directly to company profiles using Shopify's native B2B features.
Setup process:
What happens at checkout:
When a buyer from that company logs in and places an order, their assigned payment terms automatically appear as a payment option at checkout. The order creates an invoice with a calculated due date.
Invoice tracking:
Shopify tracks the due date and displays it in:
Payment collection:
Shopify does not automatically charge payment methods on the due date. You need to manually collect payment or integrate with accounting software (QuickBooks, NetSuite, etc.) to send invoices and track receivables.
If you're not on Shopify Plus, you can't assign native payment terms to company profiles. Here are alternatives:
Option 1: Draft orders
Create draft orders manually for each customer order with payment terms in the notes. This works for small customer bases but doesn't scale.
Option 2: Shopify apps
Use third-party apps like Wholesale Pricing Discount B2B or similar B2B apps that add payment term functionality through custom checkout fields and order tagging.
Option 3: External invoicing
Process orders on Shopify, then export to QuickBooks or accounting software to generate invoices with payment terms. This creates a disconnected workflow but works if you already use accounting software for invoicing.
For auto parts wholesalers with significant B2B volume, upgrading to Shopify Plus is often the most scalable solution.
Many repair shops and dealerships use purchase order (PO) systems for procurement tracking and accounting compliance.
What is a purchase order?
A PO is a document issued by the buyer to the seller, listing the items, quantities, and agreed prices. It authorizes the purchase and helps the buyer track spending against budgets.
Why auto parts customers use purchase orders:
Shopify Plus allows you to add custom fields to checkout using Checkout Extensibility.
Implementation steps:
Example PO field configuration:
For orders without PO numbers:
Some smaller shops don't use PO systems. Make the field optional, or create different checkout experiences for different customer segments.
If you sync Shopify orders to an ERP (like Microsoft Dynamics 365 Business Central or Acumatica), you need the PO number to flow through:
Shopify → ERP flow:
Without this flow, customers receive invoices they can't match to their PO system, causing payment delays.
For more on ERP integrations, see our guide on Shopify ERP Integration.
Here's how payment terms and purchase orders work together for a typical auto parts wholesale transaction:
Step 1: Customer setup
Step 2: Order placement
Step 3: Order processing
Step 4: Invoice and payment
Step 5: Reconciliation
Some auto parts wholesalers need more flexible payment terms:
Instead of calculating Net 30 from the order date, calculate it from the fulfillment (ship) date.
Why this matters: Large orders may take several days to fulfill. Starting the payment window from when the customer receives the goods is fairer and reduces disputes.
Implementation on Shopify Plus:
Use Shopify Functions to customize payment term calculation. When an order is fulfilled, trigger a workflow that recalculates the due date based on fulfillment date instead of order date.
Create custom payment term codes like:
Implementation:
Store custom payment codes as metafields on the company location profile. At checkout, a Shopify Function reads the metafield and calculates the exact due date based on your custom logic.
This requires development work but provides flexibility for complex payment arrangements.
For very large orders (performance parts, specialty orders, bulk inventory), you may require a deposit upfront with the balance on Net terms.
Example: 50% deposit at checkout, 50% Net 30 from delivery
Implementation options:
For more on deposits and unique payment structures, see our guide on Net 90, Deposits, and Other Unique Payment Terms on Shopify.
Offering Net 30 or Net 60 means you're extending credit to customers. This creates risk.
Set maximum outstanding balance limits for each customer to prevent overextension.
Shopify Plus native credit limits:
Shopify Plus allows you to set credit limits per company. When a customer's outstanding balance reaches the limit, they can't place new orders until they pay down the balance.
How to set credit limits:
Determining credit limits:
Monitor which customers pay on time and which are chronically late.
Key metrics to track:
Enforcement actions:
Don't automatically grant Net 30 to every new account.
Approval workflow:
For more on customer approval workflows, see our guide on Using Shopify Flow to Automate Customer Approval Processes.
Shopify Flow can automate common payment term scenarios:
Trigger: Order due date passes (custom trigger via app or Shopify Function)
Condition: Payment status = Pending
Action:
Trigger: Customer attempts checkout
Condition: Total outstanding balance + cart value > credit limit
Action:
Trigger: Customer completes 10th order on time
Condition: All previous invoices paid within terms
Action:
For workflows that require more complex logic or external system integration, use n8n. See our comparison guide: Conditional Logic Automations: When to Use n8n vs Shopify Flow.
Track financial health with these key reports:
Shows all unpaid orders with due dates.
Data to include:
How to generate:
Export orders with "Payment pending" status from Shopify, filter by due date, calculate days overdue.
For Shopify Plus users, use custom reports or third-party analytics apps to automate this.
Project incoming cash based on outstanding invoices and due dates.
Example:
This helps you plan for payroll, inventory purchases, and other expenses.
Rank customers by payment reliability.
Segments:
Use this data to adjust credit limits and payment terms.
For more on Shopify reporting, see our guide on Best Shopify Reports for Manufacturing Businesses.
Most auto parts wholesalers use accounting software for invoicing and receivables management.
Sync Shopify orders to QuickBooks to:
How it works:
For more on QuickBooks integration, see our guide on Shopify CRM Integration (many CRM integrations also handle accounting sync).
For larger auto parts wholesalers, Business Central provides robust financial management:
See our guide: How to Set Up the Microsoft Dynamics 365 Business Central Shopify Connector.
Acumatica is another popular ERP for auto parts distributors, offering:
See our guide: How to Set Up the Acumatica-Shopify Connector.
1. Segment customers by payment terms
Not all customers need the same terms. Create tiers:
2. Make PO numbers required for corporate accounts
If a customer is a multi-location dealership or fleet operation, require PO numbers. Smaller independent shops can have it optional.
3. Sync payment terms to your ERP
Don't manage invoices in two places. Sync Shopify orders to your ERP and let the ERP handle invoicing, payment tracking, and collections.
4. Offer early payment discounts
Incentivize faster payment with discount terms like "2/10 Net 30" (2% discount if paid within 10 days, otherwise Net 30).
This improves cash flow and reduces outstanding receivables.
5. Automate overdue reminders
Set up automated email reminders:
6. Review credit limits quarterly
Adjust credit limits based on payment history and order volume. Reward reliable customers with higher limits, reduce limits for risky accounts.
7. Train your sales team
Salespeople need to understand payment terms and credit policies. They should communicate terms clearly to customers and know when to escalate credit decisions.
Payment terms are non-negotiable for auto parts wholesalers. Your customers expect Net 30, Net 60, and purchase order support.
Shopify Plus provides native payment term functionality that works out of the box. For standard Shopify plans, you'll need apps or workarounds.
The key is integrating payment terms with your accounting workflow. Shopify should handle the storefront and order capture, your ERP or accounting software should handle invoicing and receivables management.
Get payment terms right, and you'll win more customers, increase order values, and build long-term relationships with repair shops and dealerships.
Get them wrong, and you'll face cash flow problems, payment disputes, and lost sales to competitors who understand B2B purchasing.
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