Amazon ‘Pay By Invoice’ Rankles Sellers |

Amazon has unveiled a new service that has caused lots of complaints among Amazon sellers. With their new Pay by Invoice program, Amazon buyers do not have to pay as soon as they select the buy now button. The Internet giant will then invoice the buy for a later due date. Critics say that this new play benefits larger companies but could hurt smaller sellers who will have to float merchandise at costs as possibly high as 5,000 dollars which is enough to put them out of business.

Key Takeaways:

  • Amazon’s new pay by invoice, a feature designated for third party sellers on the site, went into effect last August, on the 8th.
  • Worried sellers have been assured by Amazon spokespeople that invoiced orders will be credited upon processing.
  • Crediting will not occur, according to these spokespeople, any later than seven days post the due date upon the customer invoice.

“According to Jerry Kavesh, CEO of 3P Marketplace Solutions, a consulting firm for marketplace sellers on Amazon, this payment service could hurt sellers who rely on fast payments to buy inventory and fund their operations.”

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