Invoicing is a commonly used payment method for Business to Business (B2B) transactions. Amazon offers a Pay by Invoice option to qualified business customers on the Amazon Business marketplace. 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 use the Amazon marketplace. Pay by Invoice is expected to bring these customers onto the Marketplace and provide sellers with the opportunity to grow their sales on Amazon.
Invoices have payment terms (such as EOM etc.), which determine the due date of the invoice (e.g. end of next month after invoice date in case of EOM). Amazon credits sellers on their Selling on Amazon account for these orders when the buyer has paid the invoice.
Furthermore, in accordance with the Amazon Business Conditions of Use, Amazon Japan G.K. is appointed by a business customer, to pay an invoiced amount such as sales price, delivery charge, commission and other similar charges owed by the business customer on behalf of the business customer pursuant to sale and purchase agreements between the business customer and sellers on the marketplace (interest, late charges and other obligations arising incidental to the sale price will not be included in the payment on behalf of the business customer). In accordance with this appointment, as a general rule, if a payment on the invoice issued to the business customer has not been made for 7 days past the due date of the invoice, Amazon Japan G.K. will pay the invoiced amount on behalf of the business customer to the relevant seller on the marketplace pursuant to the provisions of Amazon Services Business Solutions Agreement.
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 these activities.
Amazon also provides sellers with the option to get early payments on invoiced orders. You can change your invoiced order payment settings and opt to get paid immediately after shipment confirmation by paying a processing charge of 1% of the invoiced amount for each transaction.
If you receive an invoiced order from an Amazon Business 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.