Pay by Invoice - Cash Flow Impact


The thing is I am retailing on Amazon … I am not a supplier for their business and so I have no desire to offer terms.

Net 30 barely covers getting inventory, shipping and stocking for FBA and the sale …


This is just another asinine idea by Amazon. It won’t hurt Amazon’s cash flow, just the seller’s. Cash flow is the name of the game and I absolutely hate the idea that Amazon thinks it will just enable customers to take their good ole sweet time paying. When I sell an item, I want paid in my next disbursement. Not three, four or even six disbursements later.

:poop: on Amazon for this incredibly STUPID idea of forcing all sellers to take this.


Yes, I get that.

Where inventory is scarce, getting paid earlier for it is better. However, having stock sitting on the shelf and sales going to competitors rather than getting that sale and just seeing the money later is increasing your income AND reducing your expenses. There is a storage cost (FBA or not) and not getting that sale in more than 30 days, is effectively reducing the cash flow.

My argument is simply that the ability to pay Net 30 does make sales and more sales than not having it.

Of course, if the inventory is scarce, it is not as beneficial.

As mentioned by several, the number of these purchases is very small - probably less than 1% - but that could certainly be higher, especially for business buyers purchasing products that businesses normally would purchase and it is just as likely that the retailers who sell those products also see payment terms delaying their own payments.

When you consider the typical situation for most retailers, they are either paying with credit card (which gives them close to 30 days between the purchase and the payment for that item) or they can request Net payment terms from their suppliers. The financial impact nets out against the benefit, which should normally be additional sales. For a business that pays cash up front for everything, it is certainly going to be a problem, but then, they should already be looking at their own credit options with all of their suppliers.

What is the difference between making a sale today and receiving payment for it in 30 days or not seeing that item purchased for 30 days? I believe with storage costs considered, it is still a positive to have it sold.



I have no choice on FBA orders … but for FBM I do and will likely keep my control.

I just don’t like being forced to offer terms on products that are not business use items on credit.

If the item is expected to move that slow then yeah maybe … It’s juts more of a principle thing to me at the moment. :slight_smile:


If one thinks that lowering the price will increase sales, one can do that.

This is a solution to a problem many of us do not want to solve. How we get incremental sales is our business decision.

If the Amazon business buyer was GM or Boeing, some of us will want their business. But it is not GM or Beoing because they do not want invoices,paying an invoice costs them money. The big guys use a credit card.

The Amazon business buyer is more likely to be a very small business with no credit card or with a tiny line on their card. Or someone doing RA on Ebay, who wants to live out of our inventory.

There have been rumors of Amazon moving into banking, and this might be part of a plan to do so.


Been dealing with this for a while.
It’s a headache from a bookkeaping perspective. Unless you download the reports you have no way of knowing that an order is pay by invoice.

All in All it hasn’t effected us that much. The largest invoiced order was $600 the smallest was $10 I think I have had maybe 20 orders in the past year that were pay by invoice.


It is not directly lowering the price, but there is certainly a cost of money consideration. You are still getting paid the same and unless you would have sold the item to someone else, this is still an additional sale. That is why it is an important consideration on whether you don’t have enough inventory for this additional business.

I agree that many companies would prefer to use credit cards. You might feel differently if you were paying the 3% credit card processing fees. My suppliers prefer Net 30 since they get to keep that part of the payment. They provide me a better discount for Net 30 than credit card payments. That improves my margins by 3%.



I am paying the fee in my Amazon referral fee, and Amazon wants another 1.5% to get my money from these small business customers promptly

Apparently the Amazon Business program is a failure. Not surprising because large businesses did not need a special program. And wholesalers serving small businesses did not sign up, and most Amazon Business sellers did not sign up to accept invoices, limiting the amount that some of the marginal business owners who signed up could spend. .

It is clear it is mandatory because when given a choice Amazon sellers said, “No Thank You”.


I think you just nailed it!
Amazon will convert as many buyers to “Business Buyer” as they can and offer terms to those with acceptable credit. They may even use 3rd party to factor the invoices and save the 2-3% on the credit card fees. On the volume they are doing, it’s a nice chunk of change.
And the 3P Sellers are the ones “waiting to get paid” on large percentage of the cash movement.

Pretty brilliant from Amazon’s point of view.
You and I and most of us 3P masses will just grunt and bear it.


Getting ready to leave the platform. This is a final straw, Amazon. Reconsider this please.


It’s been my experience that any customer who bickers over the terms are the ones that don’t pay on time or at all. Every. Single. One.


Business sales account for 30% of our sales, so leaving the program is out of the question. We are just going to adapt.


The “Pay by invoice” option has been enforced on Amazon Europe for more than half a year if I remember it properly. You can’t cancel the orders, you will not see any warning about the sale being “Pay by Invoice”.

On the transaction view, these payments show as unavailable with the availability date more than a month after the order date. So the buyer receives an item without paying for it

I even received 1 chargeback (Amazon funded) for one of these unpaid orders so the business buyer got a free item.

And yes, it is not possible to opt out. There is absolutely no notice on the order page telling you that you will not receive your payment immediately. If you sell thousands of items, you may not notice the invoice payments at all, but I can imagine that this will cause trouble for sellers who sell only a few items and need the payment to pay their bills etc.


I’m worried about someone requesting a return before ever having paid for the item. If they are net 30 and request a return on the 29th day, I’ll be out 2 shipping charges and will get a used item returned to me without ever getting a penny for the order in the first place.

This just sounds like a great way to rent an item free for 30 days. No fear of restocking fees because there’s no refund. Claim not as described and pay no shipping. Zero risk.

Yea, great idea.


According to how I read the information on Amazon, ALL sellers are or will be in June, in this program. NO opting out. The only options here are for the business buyer to opt in or not and I suspect that would be with each and every order.

Stupid idea. This should be a sellers prerogative whether to give terms or not, and why should we have to pay to get our money at the same time we normally would just because business sellers don’t realize what this does to a small business? As someone else mentioned, I’m not sure even how to do the bookwork as I am set up for immediately payments, but if someone buys with terms on Jan 31 then they have until March to pay for the item.

I suspect that Amazon is going to have lots of fun collecting the money as well.


After reading all of the posts so far, I still have no opinion either way. Unless other people run their business like we run ours, most of our customers on terms are horrible at paying on time. I’ve always said, I wish I could pay my bills late with no repercussions, but alas if I pay my electric bill too late I lose power.

It seems like Amazon is dipping their toes into the factoring business with this and as others have said further into the banking business. I can understand paying extra to get your money right away, that is just how it is for cash advances. But I feel like this is one of those opt in/opt out things not a forceable move.

The upside is that Amazon will pay us, even if the customer does not. I am going to play the wait and see game for this.


Every Seller is going to have a different exposure – and that exposure should drive their response to this latest Amazon scheme. I consider our own exposure low.

“Business Buyers” are currently about 5% of our business. Our Returns are under 1%.

The PBI Qualified Business Buyers will have to

  • complete a credit app
  • have a 1.5% late fee over 30 assessed by Amazon.
  • have to remit by ACH.

We don’t sell leotards, but frankly, those that would buy them on Amazon probably wouldn’t use their PBI QBB account.


Would raising your business pricing to an uncompetitive level be a strategy to effectively opt out?


Now not only will we be involuntary drop-shippers for every fly-by-night on-line seller; we will be made their financiers. With 10,000 listings, no inventory, and a revolving 30-day “float,” imagine the potential!

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