Payment Terms and Shipping Costs Explained

Payment Terms and Shipping Costs Explained

When a buyer places an order, payment terms and shipping costs are not automatically included. It’s clearly stated that these will be added later by the brand. This gives you flexibility in managing these details based on specific agreements with your buyers.

Adding Payment Terms and Shipping Costs

As a brand, you have the option to:

  • Add and save payment terms and shipping costs for your orders. This allows you to select them quickly for any future orders.

  • Apply these terms and costs using a dropdown menu on an order-by-order basis, which is essential as they may vary over time for the same customer, depending on factors like shipping locations or special promotions.

Best Practices for Payment Terms and Shipping Costs in B2B

  1. Tailor Payment Terms to Fit Your Buyer Base
    Different markets have different expectations around payment terms. While some clients may expect Net 30 (payment due within 30 days), others might negotiate for longer terms, such as Net 60 or Net 90. Make sure you understand local expectations and adapt accordingly.

    Tip: Offer incentives like discounts for early payment to encourage prompt settlement.

  2. Be Transparent with Shipping Costs
    Shipping costs can fluctuate based on carrier rates, fuel surcharges, and international regulations. Brands should ensure that their shipping policies are clear, providing clients with an estimate of potential shipping fees before the order is finalized. This can help avoid surprises and build trust.

  3. Consider Offering Multiple Payment Methods
    Offering a variety of payment methods (e.g., bank transfer, credit card, PayPal, Stripe) can increase convenience for international buyers. Be aware of any transaction fees associated with each method and clearly communicate these to your buyers.

  4. Research Local Regulations
    Payment terms and shipping costs can be subject to specific regulations in different countries. Be sure to familiarize yourself with these rules to ensure compliance. For example, some regions have strict rules about when invoices must be issued and how payment terms are enforced.

    Note: It’s important to do your own research or consult a legal expert to understand the limitations and regulations in your country or region.

 


    • Related Articles

    • Invoices explained

      Invoices are linked to orders. For invoices not tied to an order, it’s best to use another invoicing tool, as Orderwizz is designed for order-based invoicing. Creating an Invoice Open the Order Find the order, scroll down, and click the + button next ...

    • Incoterms Explained

      Incoterms (International Commercial Terms) are a set of globally recognized commercial terms established by the International Chamber of Commerce (ICC). These terms define the responsibilities of buyers and sellers in international transactions, ...

    • Taxes / VAT Explained

      If you don’t need to apply taxes to your customers' orders, there’s no need to add tax rates in your general settings. However, if you need to charge taxes for certain customers in specific countries, you can add relevant tax rates to your general ...

    • Delivery Notes Explained

      Creating a Delivery Note Open the order you want to create a delivery note for. Scroll down and click the + button next to "Delivery Note." The delivery note will open immediately. If you want to keep the order page open while working on the delivery ...

    • Instant Messaging Explained

      Instant messages enable you to communicate instantly with both customers and team members (other users added to your account – Learn more about adding users). If the recipient isn’t online, they’ll receive your message by email. Also, you can add ...