Invoice Defect Rate

The provided information is a set of frequently asked questions (FAQs) regarding Amazon's Invoice Defect Rate (IDR) policy, which is designed to measure how sellers handle invoices and receipts for orders from Amazon Business customers. Below are answers to the questions in this FAQ:

1. **How is Invoice defect rate calculated?**

- IDR is calculated based on orders placed during a specific seven-day period, starting two weeks ago. This period assumes Monday to Friday as working days.

2. **What is the required Invoice defect rate threshold?**

- Sellers are required to maintain an IDR below 5% to continue selling on Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it, and Amazon.es. Going over this threshold may result in account deactivation.

3. **Where can I view my Invoice defect rate?**

- You can find your IDR on the Account Health page, and you can download a report to see which orders contributed to your IDR.

4. **What information can I find in the Invoice defect rate report?**

- The report includes columns such as Shipment ID, Order ID, Ship Date UTC, Defect Type, and Defect Reason, which provide details about orders that contributed to your IDR.

5. **What status can I find after uploading a document via Manage Invoice on the Manage Orders page?**

- After attempting to upload invoices or receipts, you may see statuses like "Failed," "Pending," or "Uploaded," indicating the status of your document upload.

6. **What are the possible reasons for Amazon to reject an invoice upload?**

- Amazon may reject an invoice upload if it is not compliant with VAT invoicing guidelines or if it includes invalid documents or illegible content.

7. **Will my account be deactivated if my Invoice defect rate is above the target?**

- Yes, if you consistently fail to maintain an IDR below the target, your account may be deactivated.

8. **How can I reduce my Invoice defect rate?**

- There are several options to reduce your IDR, including using Amazon's VAT calculation service, letting Amazon generate invoices, or uploading invoices/receipts yourself. The choice depends on your VAT registration status and preferences.

9. **What should I do if I am not legally required to issue an invoice?**

- If you are not legally required to issue an invoice, you should provide a receipt for each order from an Amazon Business customer, either manually or through your solution provider.

10. **Can I send invoices or receipts via Buyer-Seller Message or in the parcel instead of uploading them?**

- No, you should use the specified solutions for providing invoices to customers, as sending invoices/receipts via Buyer-Seller Message or in the parcel is not considered valid.

11. **I have activated the VAT calculation service. Why is my Invoice defect rate not 0%?**

- The VAT calculation service can only generate invoices for orders dispatched from countries within the EU or the UK where you provide a valid VAT number in Seller Central. Ensure that you have correctly set up your VAT information.

12. **I enrolled in Amazon’s VAT calculation service and chose the setting to upload my own invoices or receipts via my solution provider. Why isn’t my Invoice defect rate 0%?**

- If your solution provider doesn't upload invoices/receipts for business orders, they will be marked as "No Invoice Uploaded" and counted as IDR defects. Contact your solution provider to resolve this issue.

13. **Do I need to upload invoices/receipts for orders that were placed before the launch of Invoice defect rate?**

- Yes, you are required to upload invoices/receipts for all orders from Amazon Business customers, including those placed before the launch of the IDR policy.

14. **Why are business customers buying products from me?**

- Business customers can see your products alongside B2C customers. If they purchase your product, you are required to provide an invoice/receipt as per Amazon Business invoicing policy.

15. **How can I get a buyer’s VAT information?**

- You can get a buyer's VAT information by enabling specific report columns in your settings and then downloading relevant reports.

16. **My invoice or receipt was marked as pending or it failed. Will this affect my Invoice defect rate?**

- Yes, if the status of your invoice/receipt is pending or failed, it will affect your IDR. You should ensure that valid invoices/receipts are uploaded within one working day.

17. **I always upload invoices/receipts on time. What if I missed one order and have a high Invoice defect rate?**

- Regularly check your orders and ensure invoices/receipts are uploaded on time. Missing one order should not significantly impact your IDR.

18. **Business orders don’t appear under “No Invoice Uploaded” tab on time. What should I do?**

- Orders with no invoices/receipts uploaded will appear under this tab as soon as the order is shipped. Regularly check this tab for updates.

19. **Where can I check shipment date for my orders?**

- You can check shipment dates for your orders in various reports and order detail pages depending on whether they are FBA or MFN orders.

20. **I didn’t upload an invoice or receipt on time, and now the order is returned or refunded. What should I do?**

- You should upload invoices or receipts within one working day after shipment confirmation. For returns, provide credit notes within one business day of return confirmation, as per Amazon Business invoicing policy.

These FAQs provide comprehensive information about Amazon's Invoice Defect Rate policy, helping sellers understand the requirements and best practices for maintaining compliance.