Invoicing is a commonly used payment method. Amazon offers a Pay by Invoice option to qualified customers on the Amazon online store. These Pay by Invoice buyers can make purchases from any seller on Amazon and receive an invoice. Buyers who prefer to pay through this option have in the past been unable to shop on Amazon. Pay by Invoice is expected to bring these customers onto Amazon’s online store and provide sellers with the opportunity to grow their sales on Amazon.
Invoices have payment terms (such as net 30), which determine the due date of the invoice (30 days after invoice date in case of net 30). Amazon will credit sellers’ Selling on Amazon account for these orders when payment for the invoice is received from the buyer. This may occur around the due date or even before the due date. However, in case of late payments, Amazon will assume the risk and pay the seller within 15 days of the invoice due date.
Amazon also simplifies invoicing transactions for sellers. Sellers do not need to perform regular credit risk assessment of buyers, bill them for their purchases, follow up on due invoices, collect unpaid invoices or manage bad debt. Amazon handles all of these activities.
Amazon also provides sellers with the option to get early payments on invoiced orders. You can enrol for the Get Paid Faster service and opt to have your payment for invoiced orders credited to the available balance of your Selling on Amazon account immediately after shipment confirmation by paying a processing charge of 1.5% of the invoiced amount for each transaction.
If you receive an invoiced order from an Amazon customer, the Balance amount on the Payments widget on the Seller Central homepage will include the invoiced order amount. You will also see a new Payment Summary page when navigating through Reports > Payments in the top navigation menu of Seller Central. This summary page has details of the credit card and invoiced order balances. The payment reports are split between credit card and invoiced orders. In the Invoiced Orders section, the new Open Invoices view shows all invoice transactions that are pending. The Invoice Due Date field indicates when the buyer is expected to pay the invoice. The Net Amount column shows the amount due to the seller after deducting all Amazon fees.