Glossary: Order rules

Deposit

A deposit is a part of the order total that the buyer pays up front, with the rest due later under the agreed payment terms. Sellers ask for a deposit on custom, made-to-order or high-value orders to cover their costs and reduce risk.

Reviewed by Hoa Nguyen, Senior Marketer. Last reviewed October 4, 2026
Last updated October 4, 2026

In detail

A deposit splits the payment in two. The buyer pays a percentage, often 20% to 50%, when the order is placed, and the balance later, when the goods ship or by a due date such as Net 30. The seller receives money at the start, and the buyer shows commitment to the order.

Deposits suit work that costs the seller money before it ships anything. Examples are custom products, made-to-order goods, large orders that tie up stock, and new customers without a payment history. A deposit also lets you offer payment terms on the rest, because you have already collected some of the cost.

A deposit is not the same as a prepayment, where the buyer pays the whole amount before shipping, or a partial payment taken later. State the terms in writing: the percentage, when it is due, whether it is refundable, and what happens if the buyer cancels. A written quote or pro forma invoice that shows the deposit and the balance avoids disputes.

In records, treat the deposit as a payment against the order and not as income until you fulfill the order, and ask your accountant how to handle it in your books. In the store, a clear payment status helps both sides, so look for a status such as partially paid until the balance arrives.

Example

A $10,000 custom order needs a 30% deposit. The buyer pays $3,000 at checkout, and the remaining $7,000 is due on Net 30 terms after the goods ship.

On Shopify

Shopify lets you require a percentage-based deposit that is collected up front, with the remaining balance due under the payment terms. After the deposit is captured, the order's payment status changes to Partially paid. Deposit requirements, partial payments and payment requests per fulfillment are available only on the Shopify Plus plan.

Sources: Shopify Help Center: B2B payment terms (read October 4, 2026); Shopify Help Center: Shopify B2B features by plan (read October 4, 2026).