Amazon‘s new payment option that allows business sellers to pay by invoice officially went into effect for third-party sellers on August 8.
The eCommerce giant announced Pay by Invoice back in May. With the new service, companies get a credit for selling their merchandise on Amazon accounts – but buyers don’t have to actually make a payment when they hit the Buy button. Instead, they’re invoiced and have the option to have an extended payment due date.
“The invoiced order payment process is in effect starting today, August 8, 2018, although it may take longer to receive your first invoiced order due to the limited number of Amazon Business buyers qualified for Pay by Invoice,” the company wrote in a letter to sellers, according to eCommerce Bytes.
Pay by Invoice will not be available to every buyer on the platform – only those approved by Amazon Business. Payment can be made via wire, EFT, ACH or check.
While sellers will have to wait longer for disbursements on orders, Amazon has assured sellers that it will credit payment on invoiced orders “as soon as the customer payment is processed and no later than the seventh day past the due date of the customer’s invoice.”
Sellers also have another option that will enable them to get paid even faster, but it comes at a cost: 1.5 percent of the total invoiced amount.
Amazon has also promised that it will handle credit risk assessment, billing and collection for its sellers.
“For all Pay by Invoice transactions, payment to you is guaranteed, even if the Amazon Business customer is late or defaults on their payment to Amazon,” the email stated, according to the blog. “For any invoiced orders that you receive on Amazon, your payment on these orders will be credited to the available balance of your Selling on Amazon account as soon as the customer payment is processed and no later than the seventh day past due date of the customer’s invoice.”