Invoice by Amazon: How Third-Party Sellers Can Win More B2B Orders
Amazon rolled out the “Invoice by Amazon” program in early 2024, letting third‑party sellers issue a single Amazon‑branded invoice for B2B orders after activating the VAT Calculation Service (VCS). The feature currently targets EU marketplaces (DE, FR, IT, UK) and does not change fulfillment methods.
Overview
Amazon is expanding its “Invoice by Amazon” program, allowing third‑party sellers to appear as a single invoicing source for business‑to‑business (B2B) purchases. The change went live in early 2024 and is aimed at removing the paperwork hurdle that often pushes corporate buyers toward Amazon‑fulfilled listings. Sellers who join can tap into the high‑value Amazon Business market without altering pricing, inventory, or fulfillment methods.
Key Points
- Single‑Supplier Invoice — When a qualified offer is bought by a business buyer, Amazon issues the invoice, so the buyer sees only one supplier name regardless of how many third‑party sellers fulfilled the order.
- VAT Calculation Service Required — Enrollment is only possible after activating Amazon’s VAT Calculation Service (VCS), which automatically generates VAT‑compliant invoices on the seller’s behalf.
- European Focus — The program is currently optimized for marketplaces where VAT invoicing is mandatory, such as Germany, France, Italy, and the UK; U.S. sellers may see limited benefit.
- No Fulfillment Changes — Sellers continue to ship orders through FBA or FBM as usual; the only shift is that Amazon, not the seller, appears on the buyer’s accounts‑payable paperwork.
- Potential Conversion Boost — Business buyers prioritize suppliers that simplify invoicing; early adopters report higher visibility in Amazon Business search results and smoother repeat ordering.
How Invoice by Amazon Works
- Activate VAT Calculation Service — A seller logs into Seller Central, navigates to the Tax Settings page, and turns on VCS. For example, a UK‑based seller registers its VAT number, enabling Amazon to calculate a 20 % VAT charge automatically.
- Enroll in Invoice by Amazon — After VCS is live, the seller selects the “Invoice by Amazon” option in the Business Settings menu and confirms which SKUs are eligible. A seller of office supplies might enroll 150 SKUs that meet the program’s price‑range criteria.
- Amazon Issues the Invoice — When a corporate buyer adds an eligible SKU to a purchase order, Amazon generates a single invoice that lists “Amazon Services LLC” as the seller. The buyer receives one document covering all line items, even though the physical products are shipped from the third‑party’s warehouse.
Analysis & Recommendations
Why This Matters
Corporate buyers can now process one invoice instead of multiple, reducing paperwork and speeding payment cycles. Early adopters see higher visibility in Amazon Business search and better repeat‑order rates, while sellers must adjust accounting to reconcile Amazon‑issued invoices with their own fulfillment costs.
Key Takeaways
- The program launched in early 2024 and requires activation of Amazon’s VAT Calculation Service.
- Only EU marketplaces where VAT invoicing is mandatory (Germany, France, Italy, UK) are fully supported.
- Amazon, not the seller, appears on the buyer’s invoice, but fulfillment remains unchanged (FBA or FBM).
- Sellers must keep VCS active continuously; deactivation suspends the Invoice by Amazon capability.
Recommended Actions
- →In Seller Central, go to Settings > Tax Settings and turn on the VAT Calculation Service, entering your correct VAT number.
- →After VCS is live, navigate to Business Settings > Invoice by Amazon and enroll the SKUs you want to sell B2B.
- →Edit product listings to add an “Invoice by Amazon” badge or note in titles/bullets to signal the single‑invoice benefit to corporate buyers.
Comments
Join the discussion
Log in or create an account to share your thoughts on this update.
No comments yet. Be the first to share your thoughts!