Amazon Business adds invoicing, allowing buyers to delay payment

The feature, which requires no action or onboarding on the part of the vendor, enables corporate buyers to make invoiced purchases. The program launches on June 30 of this year, according to a blog post.

This means that buyers no longer have to make payment for goods they buy on Amazon Business at the time of purchase. Instead, they are sent an invoice, with sellers receiving a credited balance to their Selling on Amazon account as soon as a buyer’s payment is processed.

More than that, Amazon Business assured that companies will receive payment no longer than seven days past-due, while the e-commerce conglomerate also assured sellers that it will handle credit risk assessment, billing and collection.

The blog also noted that Amazon Business is also introducing a way for sellers to get paid more quickly, but they will be charged a fee valuing 1.5% of the total invoice cost. This feature, effectively a form of invoice financing offered by Amazon, credits funds to sellers’ accounts immediately after items are shipped.

Amazon Business introduced a similar program in the UK in 2017. According to the blog announcement, sellers there expressed concern about the cash flow pressures that the features impose. Others, however, said the feature would grow sales, as many businesses can only make purchases if they are invoiced for them.

Pay by Invoice will not be available to every business buyer on the platform, only those approved by Amazon Business, the company noted. Payment can be made via wire, EFT, ACH or check; invoice payments cannot be made using cards, cash or money order.