How Do Invoicing and Sales Work in the Fulfillment by Amazon (FBA) Model?
In the FBA (Fulfillment by Amazon) model, Amazon handles the storage, packaging, and shipping of your products. The billing process typically unfolds as follows:
Order Placement: The final customer initiates an order for a product listed on your online store, which Amazon fulfills.
Order Processing: Order details are forwarded to Amazon, who then pick, pack, and dispatch the product from their facility to the customer.
Invoicing:
Amazon generates an invoice for the transaction, detailing aspects such as the product name, quantity, price, shipping charges, and any applicable taxes. This invoice is issued in the name of the customer's company (the seller) to the final customer.
Amazon collects payment from the customer for all these transactions and deducts expenses such as storage, logistics, shipping fees, and commissions.
Amazon periodically disburses to the customer (you) the earnings from the sales, minus deductions for fees, commissions, etc.
Receipt of Product and Invoice by the Final Customer:
The final customer receives the product alongside the invoice, which may be included in the package or sent separately, depending on Amazon's procedures.
Invoice details typically reflect the customer's company information, including the business name, address, and VAT number if applicable.
Order Placement: The final customer initiates an order for a product listed on your online store, which Amazon fulfills.
Order Processing: Order details are forwarded to Amazon, who then pick, pack, and dispatch the product from their facility to the customer.
Invoicing:
Amazon generates an invoice for the transaction, detailing aspects such as the product name, quantity, price, shipping charges, and any applicable taxes. This invoice is issued in the name of the customer's company (the seller) to the final customer.
Amazon collects payment from the customer for all these transactions and deducts expenses such as storage, logistics, shipping fees, and commissions.
Amazon periodically disburses to the customer (you) the earnings from the sales, minus deductions for fees, commissions, etc.
Receipt of Product and Invoice by the Final Customer:
The final customer receives the product alongside the invoice, which may be included in the package or sent separately, depending on Amazon's procedures.
Invoice details typically reflect the customer's company information, including the business name, address, and VAT number if applicable.
Updated on: 15/02/2024
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