retail terms

Retail Terms

Understanding Payment Terms with Retail Chains

Hey everyone, this is Karen Waksman, founder of Retail MBA. Today, we’re diving into the world of payment terms. If you have a great product and you’re trying to sell to bigger retail chains, understanding payment terms is crucial to ensure that you get paid. This short video training, we will provide insights and tips on navigating these waters.

What Are Payment Terms?

Payment terms are the conditions under which a seller will complete a sale. Typically, these terms specify the period that a buyer has to pay for the goods they have purchased. In the context of retail chains, these terms can vary significantly and are crucial for managing cash flow and expectations.

Common Payment Terms Offered by Retail Chains

During one of our Q&A calls, a client asked about the typical payment terms she might encounter with retail chains. She was offered a deal with 60-day payment terms, which meant she would have to wait two months after delivery to the retailer’s warehouse before receiving payment. Understandably, she was hesitant, as this could impact her business’s cash flow.

Here’s a breakdown of the typical payment terms you might encounter:

  • 30-Day Terms: This is often the most common payment term offered by retail chains. It means that the payment is due 30 days after the invoice date or delivery of goods.
  • 60-Day Terms: Less favorable for suppliers, this term extends the payment period to 60 days. It’s not uncommon but can be challenging for businesses with tighter cash flows.
  • 90-Day Terms: These are less common and usually reserved for very large deals or specific circumstances. It can be quite burdensome for a supplier.

Navigating Unfavorable Payment Terms

When faced with unfavorable payment terms, such as the 60-day or 90-day terms, it’s important to know how to respond. Here are some strategies:

  • Negotiation: Always try to negotiate better terms. Politely express your preference for shorter terms, like 30 days. For example, you might say, “I understand the standard terms are 60 days; however, for us to manage our operations effectively, we would prefer 30-day terms. Is there any way we can work towards that?”
  • Decision Making: If negotiation fails, you need to decide whether the opportunity is worth the extended payment term. Sometimes, securing a deal with a major retailer can justify longer payment terms due to the volume and exposure it brings.
  • Third-Party Financing: If you’re worried about cash flow, consider third-party financing options. There are companies that specialize in financing orders or invoices, which can help bridge the gap between delivery and payment.

Leveraging Retail MBA for Better Deals

In our Retail MBA training program, we delve deeper into strategies for negotiating better payment terms and handling objections from retail buyers. We provide comprehensive guidance on how to secure favorable terms even after contracts are signed.

For those looking to expand their knowledge and skills in dealing with retail chains, our program offers both do-it-yourself and done-for-you services. These resources are designed to equip you with the tools needed to navigate the complex landscape of retail sales successfully.


Understanding and negotiating payment terms with retail chains can be daunting, but it’s a crucial part of ensuring the financial health of your business. By being prepared to negotiate and knowing your options, you can enter these discussions with confidence. Remember, while securing a deal with a major retailer can be beneficial, it’s important to ensure the terms don’t jeopardize your business’s cash flow.

For more insights and assistance on navigating retail partnerships, consider joining our Retail MBA program. Visit Retail MBA for more information on our training modules and services. Stay informed and empowered to make the best decisions for your business in the retail industry.

Thank you for reading, and don’t forget to subscribe for more useful tips and updates on working with retail chains. Your success in retail is just a negotiation away!

retail terms

Step-by-step training on how to sell to retail chains!

We explain exactly how to do that and how to get started today. I’ve taught over 100,000 of companies over the years across the globe on how to get your products to the stores. And so we’re here to support you. Or please subscribe to our Youtube channel and or be on the lookout for additional training that we create.

We are here to expedite the process of generating revenue with your physical products and that’s what we’re all about.  Take a look at our advanced training, live events, certification programs and so much more.

In this training, I will discuss some of the things to think about when approaching a retailer to sell your products and become a vendor. Hope it helps! 🙂

Karen Waksman,
Retail MBA

Questions? Contact Us!
1-855-Retail-2 (Call or Text)

Retail MBA provides a step-by-step formula on How to Sell to Major Retailers, Online Retailers, Smaller Retailers, Catalogs and More. No Experience Required! These solutions continue to convert for clients year-over-year! These are Time-Tested and Proven Strategies that we utilize ourselves when going after stores! Everything we teach, we test. Want access to these formulas? ANY one of our programs and coaching systems gives you access to them now. With that said… 

Here are 5 Easy Ways to Work with Us:

 1) Free Training If You Would Like to Join Our Next FREE Webinar Training Called “Retail Chain Store Secrets – How to Sell to Major Retail Chains. No Experience Required” Then Sign Up NOW To Learn All About Selling into Retail Chains By Clicking Here!

2) Retail MBA Year Long Coaching and Training System  Our Year Long Coaching and Training System with Karen Waksman is POWERFUL! This is our most popular training and coaching system! We walk you through how to approach, pitch and sell to retail chains and we coach you along the way! Join us by Clicking Here!

3) Masterclass Intensives  Want to Join our Next 4 Week Elite Retail MBA Masterclass Intensive? These Intensives Are EPIC for people who Love Fast Paced Learning – Homework, Retail Coaching, Developing Your Strategy, Buyers Contacts and More! These Events Are Held Every Quarter. Join us by Clicking Here!

4) Done-for-You Program If You Want Karen Waksman and Her Team to Reach Out to Your Top Dream Retail Chains On Your Behalf – And You Have a Retail-Ready Product, Check Out our Epic Done-For-You Service by Clicking Here!

5) In Person Events – If You Want to Learn LIVE and Meet Karen Waksman in Person at Our Next “America’s Next Retail Product: LIVE Event with Other Like-Minded Individuals in Beautiful San Diego, CA! We Would LOVE to Have You Join Us by Clicking Here!

retail terms

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