Shopify adds payment term support to draft, pending orders

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Shopify has added native support for payment terms to its backend.

While the new feature doesn’t allow customers, such as wholesale buyers, to directly place orders with payment terms applied, it leverages the platform’s existing draft orders feature with the added functionality to select from due upon receipt or net 7, 15, 30, 60 or 90 days.

Store owners can also select a fixed due date and apply terms to pending orders placed via the online store.

Once created, store owners can email an invoice to the customer as well as process a payment for the order.

The system has also been updated to provide a filter for showing overdue orders.

This feature is most likely to be used in wholesale situations or when selling to government or educational institutions, who still frequently buy using purchase orders or terms. It could, however, also be leveraged for “everyday” customers, though there’s obviously the risk of not being able to collect payment.

The draft order feature is also commonly used to create “prebuilt” shopping carts for customers and provide them with a single link to complete checkout.