How to Offer Net Payment Terms on Shopify (Net 30, Net 60, & More)?

Quick Answer

Yes. You can offer Net Payment Terms on Shopify, such as Net 30, Net 60, or other custom terms. This is achieved by combining customer tags, draft orders, and specialized Shopify apps like Wholesale Pricing Discount B2B. This powerful trio allows approved B2B buyers to complete orders and pay later without requiring any complex custom coding.

What Are Net Payment Terms in B2B E-commerce?

Net payment terms empower business-to-business (B2B) customers to delay payment until after they receive an order, rather than requiring immediate upfront payment at checkout. This flexible payment structure is crucial for fostering strong B2B relationships and facilitating larger transactions.

Common Net Payment Terms:

• Net 30: Payment is due within 30 days from the invoice date.
• Net 60: Payment is due within 60 days from the invoice date.
• Custom Terms: Tailored payment schedules based on negotiated agreements or specific buyer tiers (e.g., Net 45, Net 90, or even milestone-based payments).

Why are Net Payment Terms Essential for B2B?

These terms are vital for:

• Wholesale Accounts: Businesses buying in bulk often require credit terms.
• Distributors and Resellers: Companies that sell your products to end-consumers need time to manage their cash flow.
• Corporate Procurement Buyers: Large organizations typically operate on purchase orders and extended payment cycles.
• Building Trust: Offering credit demonstrates confidence in your B2B partners.
• Facilitating Larger Orders: Removing the upfront payment barrier encourages higher order values.

Step-by-Step: Setting Up Net Payment Terms on Shopify

Step 1: Tag Net Terms-Eligible Customers

The first critical step is to identify and tag your customers who qualify for post-pay terms within your Shopify admin. These tags act as identifiers for your system and apps.

Tag Examples:

• net-30
• b2b-approved
• invoice-eligible
• credit-approved
• wholesale-client

Pro Tip for Automation: Utilize Shopify Flow to automate customer tagging. You can set up workflows to auto-tag customers based on specific criteria, such as a successful credit application form submission, a minimum purchase history, or manual approval by your sales team.

Step 2: Leverage Shopify Draft Orders for Post-Pay Checkout

Shopify’s native checkout is designed for immediate payment. To facilitate Net Terms, you’ll utilize Draft Orders – a powerful built-in feature that allows you to create orders and send invoices.

Net Terms Workflow using Draft Orders:

1. B2B Buyer Places Order (or Request): The customer browses your store and adds items to their cart.
2. Draft Order Creation: You (or an integrated app) create a Draft Order based on the customer’s cart.
3. Invoice Generation & Delivery: Send the invoice to the customer via email. You can also provide a direct link for offline payment instructions (e.g., bank transfer details) or integrate with a manual payment gateway.
4. Customer Payment: The buyer pays the invoice within the agreed-upon terms (e.g., 30 or 60 days) using methods like ACH transfer, check, or a manual bank transfer.

Integration Tip: Shopify’s built-in Draft Order feature is robust. For advanced invoicing and accounts receivable management, consider integrating with popular accounting and payment apps like QuickBooks, Xero, or dedicated Accounts Receivables solution.

Step 3: Enforce Net Terms Logic with a Pricing App

To automate pricing, minimums, and checkout flow for your net terms customers, install a specialized Shopify app like Wholesale Pricing Discount B2B.

Key functionalities of such an app:

• Tag-Based Rules: Associate specific customer tags (e.g., net-30) with custom pricing tiers and payment options.
• Custom Pricing: Apply special wholesale pricing or discounts only to your tagged B2B buyers.
• Minimum Order Values (MOQs): Enforce minimum order quantities or values for net terms orders.
• Checkout Redirection/Blocking: For customers tagged for net terms, the app can automatically block the standard instant payment checkout and redirect them to an “Invoice Request” page or generate a Draft Order directly.

Step 4: Clearly Communicate Terms on Product & Cart Pages

Transparency is key for a smooth B2B buying experience. Ensure your net payment terms are clearly communicated on the relevant pages of your Shopify store.

Where to Add Messaging:

• Product Pages: Add a note like: “Net 30 available for qualified business buyers. Please apply here.”
• Cart Page: Display a message such as: “Your payment will be due within [30/60] days after order fulfillment. An invoice will be sent via email.”
• Dedicated B2B/Wholesale Page: Create a comprehensive page outlining your wholesale program, including payment terms, application process, and benefits.

Implementation: Use Shopify’s metafields, dynamic banners, or cart notes to display this payment logic clearly before the customer proceeds to checkout.

​​Example: How Net 30 Works in Practice (Case Study: Commercial Restaurant Supplies, Dallas, TX, USA)

Let’s illustrate with a hypothetical scenario for a B2B business operating out of Dallas, Texas, USA:

Brand: “Southwest Supply Co.” (based in Dallas, specializing in commercial kitchen and restaurant supplies)

B2B Customer: “Grill & Chill Diner” (a restaurant business in Austin, Texas, tagged net-30-us and b2b-approved)

Workflow:

1. Login & Order: Grill & Chill Diner logs into Southwest Supply Co.’s Shopify store and adds a new industrial fryer to their cart.
   
2. Checkout Redirection: Due to their net-30-us tag, the standard instant payment checkout (credit card, PayPal) is bypassed. Grill & Chill Diner is redirected to a page that says, “As an approved B2B partner, your payment is due in 30 days. An invoice will be sent to your registered email.”
   
3. Invoice Receipt: Southwest Supply Co. (or its integrated app) automatically generates an invoice for the fryer and emails it to Grill & Chill Diner. The invoice clearly states “Payment Due: Net 30” and includes details for ACH transfer or mailing a check.
   
4. Payment: Within 30 days, Grill & Chill Diner initiates an ACH bank transfer or mails a check to Southwest Supply Co.’s account to settle the invoice.

Visibility: On the cart page for Grill & Chill Diner, a clear message reads: “Your order payment is due within 30 days via ACH or check. An invoice will follow shortly.”

Recommended App Stack to offer Net Terms on Shopify

To maximize your Shopify store’s B2B capabilities with net payment terms, consider this app stack:

• Pricing & Tag Logic: Wholesale Pricing Discount B2B (or similar app) – Essential for assigning custom pricing, minimums, and linking customer tags to payment term eligibility.
• Checkout Access Control: Wholesale Lock Manager (or similar app) – Enables you to control which checkout options are visible to specific customer segments, redirecting net terms customers to an invoicing flow.
• Invoice/Order Reminders: AReceivables (or similar dedicated AR app) – Helps automate invoice generation, reminders, and payment tracking, streamlining your cash flow.
• Automation: Shopify Flow – For automating customer tagging based on application forms, order history, or other criteria, freeing up manual effort.

Accounting Integration: QuickBooks, Xero, or similar – For seamless synchronization of orders and invoices with your accounting system, simplifying reconciliation and financial reporting.

Final Summary

Net payment terms are not just a convenience; they are a critical component for scaling B2B commerce effectively. By strategically leveraging Shopify’s native features alongside the right third-party applications, you can:

• Assign Flexible Terms: Offer Net 30, Net 60, or custom credit terms to your approved business buyers.
• Streamline Invoicing: Handle order and invoice processing efficiently through draft orders and integrated accounting solutions.
• Tailor Experience: Customize pricing, product visibility, and checkout rules based on customer tags.
• Support Global Workflows: Adapt your approach to accommodate diverse payment preferences and regulatory requirements across different regions.

Begin by clearly identifying and tagging your eligible buyers and establishing a straightforward invoice flow. From there, progressively enhance your system with advanced pricing rules, automation, and precise access controls to build a truly robust B2B e-commerce operation.

Frequently Asked Questions (FAQs)