The verdict in three sentences
A hardware and plumbing distributor serving 1,100 retailers from Dubai or London on 30-day terms is effectively financing its customers' cash flow, and every late day costs money. A B2B webshop with 8,000 SKUs, volume pricing, capped trade credit and automated reminders turns collections into a process instead of a chase. The project sits in Kolonell's custom application grid, 2,500,000 to 15,000,000+ FCFA (3,810 to 22,870+ EUR), over 3 to 5 months.
Why trade credit costs so much
Hardware retailers in Dubai's Deira and Al Quoz or in London's trade counters buy on account and sell before they pay. Terms say 30 days, real payment often stretches to 50 or 60. On monthly sales of 2 M USD, each day of delay ties up about 67,000 USD. The table uses USD for a Dubai distributor; a London firm would see similar ratios in GBP.
| Indicator | Typical current state | Target with B2B webshop |
|---|---|---|
| Contract terms | 30 days | 30 days |
| Real days sales outstanding (DSO) | 55 days | 38 days |
| Total receivables | 3.7 M USD | 2.5 M USD |
| Receivables over 90 days | 6% of book | 2% of book |
| Funding cost (overdraft at 8%) | 24,500 USD a month | 16,900 USD a month |
| Weekly time spent chasing | 25 hours (2 staff) | 6 hours |
| Invoice disputes | 4% of invoices | Under 1% |
Moving from 55 to 38 days frees about 1.1 M USD of cash. That figure alone justifies the investment.
An 8,000 SKU catalogue with volume pricing
Eight thousand SKUs means PVC and copper pipe in many diameters, fittings, taps, fixings, tools, paint and cable. Retailers search by manufacturer code, by use or by picture. Without good search, they phone the sales rep.
| Catalogue feature | Business rule | Benefit |
|---|---|---|
| Search by code, name and use | Trade synonyms (elbow, bend, 90 fitting) | Fewer calls to sales |
| Volume pricing | E.g. 1 to 9 cartons list price, 10 to 49 minus 4%, 50+ minus 8% | Higher basket value |
| Price per customer tier | Wholesaler, sub-dealer, retailer | End of case-by-case discounts |
| Real-time stock per warehouse | Jebel Ali, Al Quoz, Abu Dhabi | Fewer promised items out of stock |
| Quick order by list | Paste a list of codes and quantities | Time saved for large accounts |
| Technical sheets | Diameters, pressure ratings, standards | Fewer returns |
Volume pricing has a direct effect: a retailer who sees 4% off from 10 cartons consolidates orders, which also cuts delivery cost.
Capped credit and automated reminders
Each retailer gets a credit limit based on history, for example 1.5 times average monthly purchases. The webshop checks balance, overdue invoices and limit on every order. Above the limit, the order goes on hold or requires a deposit by card or bank transfer.
Reminders follow a fixed sequence: SMS and WhatsApp reminder 3 days before due date, reminder at day 1 overdue, call from the credit controller at day 10, order block at day 15, formal notice at day 45. Every step is logged and the retailer sees invoices and balance in their account.
On Kolonell's custom application grid, a B2B webshop with catalogue, volume pricing and credit control is medium tier, 4,000,000 to 7,000,000 FCFA (6,100 to 10,670 EUR). With automated reminders, ERP sync and multi-warehouse stock, it becomes complex tier, 7,000,000 to 15,000,000+ FCFA (10,670 to 22,870+ EUR), over 3 to 5 months. As an order of magnitude, UK or UAE agencies quote 70,000 to 180,000 GBP or USD for similar B2B commerce builds in 2026. For a related case, read about a B2B ordering portal for bakeries or see our e-commerce offer.
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Rashid, finance director of a hardware importer in Jebel Ali, posts 2 M USD of monthly sales and 55 days real DSO. Receivables stand at 3.7 M USD, funded by an 8% overdraft, about 24,500 USD of interest a month.
With the webshop and automated reminders he targets 38 days. Target receivables: 2 M divided by 30, times 38, about 2.53 M USD. Interest: 16,900 USD a month. Saving: 7,600 USD a month, plus 19 hours of chasing saved each week. On a complex-tier build at 18,000 EUR, within the grid range, payback comes in under 3 months.
FAQ
How should we set each retailer's credit limit?
A simple rule works well: 1.5 times average monthly purchases over the last 6 months, reviewed quarterly. New accounts start low, for example 5,000 USD.
Will retailers accept order blocks?
Yes, if the rule is known and shown in their account. Blocks at day 15 usually affect only 5 to 8% of accounts.
Which payment methods can we accept?
Card, bank transfer, direct debit and open account. Online payments are matched to invoices automatically, which reduces disputes.
Do we have to enter 8,000 SKUs by hand?
No. We import the ERP file or a spreadsheet, then add photos and technical sheets by priority, starting with the 1,500 SKUs that make 80% of sales.
How long does the project take?
Between 3 and 5 months depending on warehouses and ERP. A first release with catalogue and credit control can go live in 3 months.
Let's scope your project. We map your B2B webshop, from an 8,000 SKU catalogue to capped credit and reminders, with a first release in 3 months. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
