Selecting the best billing software for distributors can be a challenge. There are plenty of options when it comes to billing software for wholesale shops, but not every option offers the same features. Which software or platform you choose should depend on what type of store you run and how you plan on billing customers.
In this article, we’ll introduce you to three of the best options for billing software for wholesale shops. We’ll discuss how they work, what features they offer, and how much they cost. Let’s get right to it!
Features You Need from Billing Software for Distributors
Billing works much differently when it comes to wholesale distributors versus retail stores. When it comes to retail stores, customers expect to pay right away and, in most cases, they’ll use their credit cards to do so. However, the billing process is much less straightforward when it comes to wholesale purchases.
For one, wholesale customers may not pay immediately. In many cases, you’ll have NET-pay arrangements with customers. That means that your biggest customers may pay 30, 60, or even 90 days after they make a purchase.
A lot of wholesale customers might also prefer to pay via wire transfer instead of credit cards since you’re usually dealing with purchases in the thousands or dozens of thousands of dollars. A lot of traditional payment processors are ill-equipped to handle transactions of that magnitude, which makes them poor options for wholesale stores.
Billing software for distributors should adapt to your wholesale customers’ needs and make processing payments as simple as possible. If that software also includes functionality that helps you manage your books, then you’ll be all the better off for it.
3 Tops Options for Billing Software for a Wholesale Shop
There aren’t all that many options for billing software that’s designed for wholesale stores. With that in mind, we put together a list of our top three choices that can adapt to your needs as a distributor. Let’s start with FreshBooks.
FreshBooks is one of the most popular billing and time-tracking management software options for small businesses. Among its many features, you have robust invoicing tools that are perfect for wholesale distributors. You can create custom invoices, send reminders, and process payments through multiple gateways.
As far as payment processing goes, FreshBooks supports some of the most popular gateways in the market, including PayPal and Stripe. The platform also offers options for ACH transfers if you’re in the US and local bank transfers depending on your location.
To make billing easier, customers will be able to access payment options right from their invoices. Plus, you can enable partial payment if that’s an option that you offer for your wholesale customers. Some distributors have clients pay a percentage of their invoices right away and the rest upon receiving their products, which is model that can help you minimize your risk.
Keep in mind that FreshBooks charges a fee for payments that you process using their tools. In most cases, those fees are a standard 2.9% for each transaction plus a small individual charge. For ACH transfers, FreshBooks charges 1% of the entire payment. You also have to pay for a subscription plan, with FreshBooks’ basic tier starting at $4.50 per month.
Those fees can quickly add up for large wholesale purchases, which means FreshBooks isn’t all that viable if you’re making big sales regularly. However, it’s a great solution if you’re just starting out as a distributor.
2. Zoho Invoice
It is part of the Zoho suite of tools, which includes everything from Customer Relationship Management (CRM) software to website builders. This billing software for distributors enables you to generate customizable invoices for clients and process payments directly.
As far as invoicing functionality goes, you can use templates so your designs look more professional. The software enables you to create customer profiles and track their spending, send invoices in multiple languages and currencies, and even mail physical copies of your digital files.
Using this, you can process payments via credit cards, cash, checks, and ACH. Most wholesale customers won’t pay cash, but the option to process checks and ACH transfer is great. Unlike with FreshBooks, you don’t get the option to process local bank transfers for countries outside of the US.
Zoho Invoice offers a free plan that enables you to invoice up to five customers and process payments. However, for a wholesale store, we recommend that you opt for its Basic plan, which starts at $90 per month and enables you to bill up to 50 customers.
3. WooCommerce Wholesale Prices Premium
WooCommerce Wholesale Prices Premium is part of Wholesale Suite. This plugin enables you to add wholesale customer roles to your WooCommerce store and set up custom prices and discounts for them. Unlike the other software we’ve seen so far, this plugin offers a one-in-all solution to set up a wholesale store and manage billing.
Wholesale Prices Premium integrates with the WooCommerce Invoice Gateway plugin. That’s a free tool that enables you to offer wholesale customers the option to pay via invoice and using the payment processing channels that you prefer.
To set up invoices for wholesale clients, you’ll need to set up and activate both plugins. Once you do, go to WooCommerce > Settings > Wholesale Prices > Payment Gateway. From this screen, you can select which wholesale customer roles you want to have access to each payment method, including invoices:
Select one or more wholesale customer roles and choose which payment gateways they’ll have access to. Click on Choose payment gateway… and you’ll see all of the options available to you, including invoicing:
Keep in mind that Wholesale Prices Premium doesn’t handle invoicing per se. You’ll need to use an invoicing solution to send invoices and process payments, or you can bill clients directly.
There are a lot of options for billing software for distributors. Your choice of billing software will decide what type of payment options you can offer, how your invoices look, and whether you have access to other features that make your work easier.
If you’re running a wholesale operation using WooCommerce, we recommend that you use Wholesale Prices Premium alongside the WooCommerce Invoice Gateway. That way you’ll be able to offer customers multiple payment options, including invoices.
Do you have any questions about which billing software for distributors you should use? Let’s talk about them in the comments section below!