4 Tips to Reduce Amazon invoice defect rate

Invoice Defect Rate, also known as Invoice Defect Rate, or IDR for short, is a new performance assessment indicator for seller accounts launched on Amazon Europe, which refers to the proportion of orders for business customers that fail to provide an invoice (or receipt) within the first business day after the order is confirmed to be shipped to the total number of orders.

Amazon sellers need to pay attention to the invoice defect rate, before a number of sellers received Amazon shutdown warning emails, Amazon platform regulations invoice defect rate higher than 5% of the store or face the risk of shutdown, so we must do a good job of related work.

Amazon corporate purchase invoicing policy requirements

1. Within one business day after each order is confirmed for dispatch, all sellers are required to provide a valid VAT invoice to Amazon Enterprise Buyer for this order.
2. Sellers who are not required to pay VAT for the goods sold are required to provide a receipt.
3. Amazon Business Buyer credit slips for returned goods must also be provided within one business day of the confirmation of the return.
   Under the influence of the policy, the invoice defect rate has become an important measure of the invoice related experience that Amazon business buyers receive from sellers.

the ways to upload invoices on Amazon

1. Automatically uploading using the free Amazon VAT calculation service (VCS)
2. Uploading manually through the order management of seller platform (IDU), and
3. Choose a third-party service provider to provide invoicing service (VCS Lite). If you want to choose a third-party service provider to develop invoices, remember to choose the official service provider recommended by Amazon.

How to calculate the invoice defect rate?

The invoice defect rate is calculated based on the seller’s order. Even if Amazon does not open a purchase, it may receive an order from the buyer. Once the order occurs, the corresponding bill needs to be provided upon request.

According to the invoicing policy requirements of Amazon Business Europe, all sellers should provide buyers with a valid VAT invoice within one business day after each order confirmation is sent.

If a seller is not legally obliged to issue a VAT invoice, a receipt will need to be provided for each order placed by the buyer. If a seller plus fails to provide an invoice (or receipt) in a timely manner within one business day (*business days means Monday to Friday) after confirmation of order delivery, it is recorded in the invoice defect rate.

4 ways to reduce the Amazon invoice defect rate

1. Upload invoices manually through the Manage Orders page.
2. Sellers who are exempt from VAT registration in both EU and UK can let Amazon issue receipts for free after declaring VAT exemption.
   The invoice defect rate will be updated daily, sellers need to pay attention to the account status in real time, check the account performance indicators in time and upload invoices (or receipts) for shipped orders on time.
3. If there is no invoice from Poland to other EU countries, the invoice defect rate will increase. To avoid high invoice defect rate which may affect account sales, please ensure that invoices (or receipts) are uploaded within one business day after each order confirmation.

• Invoices uploaded by other means cannot be counted (e.g. station mail, email, paper packages, etc.), which will be considered as lacking invoices.
• Use the free Amazon VAT Calculation Service (VCS) to allow Amazon to create and upload invoices automatically. Invoices uploaded by other means cannot be counted (e.g. station mail, email, paper copies sent with the package, etc.). Invoices will be considered as missing.
• After activating VCS, Amazon will generate and upload invoices on behalf of the seller in a timely manner if the order is delivered to a country with a valid tax ID.
• If part of the order is sent directly from China to EU consumers, VCS will generate and upload a receipt.

4. Select a third-party service provider invoicing service
   Choose to activate the Amazon VAT calculation service to allow Amazon to calculate the VAT and have the service provider upload the invoice;You can also choose to calculate VAT by yourself or by the service provider and upload invoices in bulk through the service provider.It is also possible to effectively reduce the Amazon invoice defect rate!

• The Invoice Defect Rate (IDR) policy is only valid for sellers selling to business buyers, i.e. B2B, and sellers are required to upload the invoice for the order to Amazon’s back office regardless of whether the business buyer requests an invoice.
• Sellers can log in to the “Seller Platform”, find the “Performance” section and view “Account Status|, select “Customer Service Performance” to check The store’s invoice defect rate. Everyone quickly go to see what their invoice defect rate is!

Requirements for Amazon invoices

1. the date set in the invoice date within 180 days.
2. the invoice should include your name and address.
3. the invoice should include the name or address of the manufacturer or distributor.
4. The invoice needs to show a combined order containing at least 10 of the requested items, and at the same time, needs to be as close as possible to the number of items in stock in the back office.
5. Omit pricing information. If the seller submits an invoice for mainland China, I suggest that you do not have any obscuring pricing information on the invoice Oh.
6. Amazon platform may contact the product supplier you indicated in the application, as a way to verify the authenticity of the documents you submit.

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