Invoicing is a commonly used payment method by customers and business buyers. Amazon offers a Pay by Invoice option to qualified customers on the Amazon marketplace. These 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. The Invoicing payment method 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 net 30), which determine the due date of the invoice (30 days after invoice date in case of net 30). Payment terms can differ by buyers and are approved by Amazon. Amazon credits sellers on their Selling on Amazon account for these orders when the buyer has paid the invoice. Furthermore, Amazon will assume the risk and credit the available balance of the sellers' Selling on Amazon account on the 7th day past the due date if the customer has not paid by that time.
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 your payment 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, 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.