Direct answer
When a Mahjong brand sells to boutiques, it usually chooses among three arrangements. With prepaid orders, the store pays before you ship. With net terms, you ship first and the store pays within an agreed number of days. With consignment, the store displays your sets and pays only for what sells. Prepaid protects your cash, net terms help win new accounts, and consignment can get you into stores that will not take risk on a new brand, at the cost of tying up your inventory. Choose based on your cash position, the store's track record and how quickly your sets sell.
This is general business information, not legal or financial advice.
Key takeaways
- Prepaid is safest for your cash but can slow new accounts.
- Net terms help stores say yes, but you carry the risk of late payment.
- Consignment lowers the store's risk and raises yours.
- Put terms in writing, including payment dates, damage, returns and unsold stock.
- Track inventory carefully for consignment.
The three arrangements compared
| Arrangement | Store pays | Your cash flow | Your risk | Best for |
|---|---|---|---|---|
| Prepaid | Before shipment | Strong | Low | Established demand, small brands with tight cash |
| Net terms | An agreed number of days after invoice | Delayed | Late or missed payment | Building relationships with reliable stores |
| Consignment | After the item sells | Slowest | Unsold or damaged stock, tracking | Testing new stores or high-value sets |
Net terms
With net terms, you invoice when you ship and the store pays by the due date. Things to decide:
- Payment period: a fixed number of days after the invoice date.
- Who qualifies: new stores might start prepaid, then move to terms after a successful first order.
- Late payment: what happens if payment is late, written into your terms.
- Credit checks: references or trade history for larger orders.
Wholesale marketplaces sometimes offer their own payment terms to retailers; check the current terms in your account. See selling on Faire.
Consignment
With consignment, you still own the sets until they sell. Agree on:
- Commission or split: what share of the sale the store keeps
- Reporting: how often the store reports sales and pays you
- Duration: how long sets stay before unsold stock is returned
- Damage and loss: who is responsible if a set is damaged or tiles go missing
- Display: how the sets will be shown
- Pickup or return shipping: who pays
Keep a signed consignment agreement and an inventory list for every store.
Inventory and cash planning
Net terms and consignment both delay cash. Before offering them:
- Calculate how much cash is tied up in unpaid invoices and consigned stock
- Make sure you can fund your next production run; see unit cost by quantity
- Keep enough stock for prepaid orders and reorders
Pricing under each arrangement
Your wholesale price and MSRP should stay consistent. Some brands offer a small benefit for prepaid orders. For consignment, calculate your margin after the store's share. Our retail pricing guide shows the formulas.
Paperwork checklist
- [ ] Wholesale price list and MSRP
- [ ] Written payment terms, including due dates and late payment
- [ ] Consignment agreement, if used
- [ ] Inventory list per consignment store
- [ ] Damage, missing tile and return policy
- [ ] Invoice and statement templates
Common mistakes
- Offering net terms to every new store without history
- Consignment without a written agreement
- No inventory tracking for consigned sets
- Forgetting how much cash is tied up in unpaid invoices
- Different MSRPs for different stores
FAQ
Should a new Mahjong brand offer net terms?
Many start with prepaid orders and offer terms to stores with a good payment history.
Is consignment a good way to enter boutiques?
It can help a store try a new brand, but you carry the inventory risk. Use a written agreement and track stock.
Who is responsible for missing tiles in consigned sets?
Agree on it in writing. Spare tiles help resolve problems quickly; see spare tile planning.
Can I change terms later?
Yes. Many brands move stores from prepaid to terms after successful orders.
Next step
Planning wholesale to boutiques? Send Lucky Mahjong your expected quantities and reorder rhythm. We will help you plan production runs that support your wholesale terms.