Invoice Defect Rate (IDR) measures the number of orders from Amazon Business customers for which an invoice/receipt wasn’t uploaded within one working day of dispatch, as a percentage of your total orders from Amazon Business customers.
Timely access to invoices/receipts allows business customers to efficiently claim back purchases, and fulfil their tax and accounting obligations. Our Invoice Defect Rate policy gives business customers the confidence they need to purchase your products on behalf of their company, and ensures that we deliver a great invoicing experience as per Amazon Business invoicing policy.
IDR is calculated based on orders placed during the seven-day period starting two weeks ago. For example, on 2nd of May your IDR would be calculated for orders placed between 19th of April and 25th of April (of the same year).
IDR calculation assumes Monday to Friday as working days, irrespective of public holidays. For example, if you confirm dispatch of an order between 00:01 a.m. and 23:59 p.m. on Monday, you must upload an invoice/receipt for that order by 23:59 p.m. on Tuesday. If you confirm dispatch of an order between 00:01 a.m. and 23:59 p.m. on Friday, you must upload an invoice/receipt for that order by 23:59 p.m. on Monday.
You are currently required to maintain an Invoice Defect Rate below 5% to sell on Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it and Amazon.es. If you don’t maintain an IDR under the threshold, your account may be deactivated.
You can view your IDR on Account Health page. In addition, you can download a report to see which orders contributed to your IDR:
If you don’t maintain an IDR under the target, your account may be deactivated.
You can reduce your IDR through one of the following solutions:
Invoice/Receipt generated by Amazon
Invoice/Receipt generated by Selling Partner or solution provider
Manually via Manage Orders or the Order Details page by following this path: Orders > Manage Orders > No Invoice Uploaded. Filter by Business Customer under Business Orders. Select View FBA orders or View MFN orders, choose your date range > click Upload Invoice.
As per Amazon Business invoicing policy, if you are not legally required to issue an invoice , you must provide a receipt for each order from an Amazon Business customer. You can do this manually on the Manage Orders page or via your solution provider.
Selling Partners exempt from VAT registration in both the EU and the UK can let Amazon issue receipts on their behalf at no cost by declaring their VAT exemption.
No, as per Amazon Business invoicing policy, you should use one of the solutions described in FAQ 5 to provide invoices to customers. Sending invoices/receipts via Buyer-Seller Message or in the parcel is not considered valid and will negatively affect your IDR. Learn more here.
Amazon’s 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. To find out if your VAT number is valid, go to Seller VAT Calculation Eligibility Criteria on the VAT Calculation Services Methodology page.
If you ship from a country for which you have not added a valid VAT number and/or you added a local VAT number, you must manually upload invoices/receipts for these orders OR provide a valid VAT number, otherwise your IDR will be impacted. For example, if an order is placed on amazon.es (you have a valid VAT number in Spain), but shipped from Italy (you have a local VAT number in Italy), you’re responsible for uploading this invoice or receipt.
If you need help to register a valid VAT number, click here.
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. To correct this situation please contact your solution provider to learn more about the possible issue and ask them to upload invoices/receipts once the problem is fixed.
We advise you to implement regular proactive checks of your solution providers, by going to the Manage Orders > "No Invoice Uploaded" tab, to see if they are uploading invoices or receipts within one working day as per amazon business invoicing policy.
If you have developed your own invoicing solution, go to the development guide to ensure you are following proper developer instructions.
Yes. As of 20th March 2020, the Amazon Business invoicing policy requires you to upload invoices/receipts on Seller Central for all orders placed by Amazon Business customers. However, IDR is only calculated for orders placed during the seven-day period starting two weeks ago.
When you start selling on Amazon, your products are displayed to both B2C and B2B customers. This means that your products are always visible to more than five million of Amazon Business customers, and if they purchase your product, you’re required to provide an invoice/receipt as per Amazon Business invoicing policy. If you use Amazon’s solution for automatic invoice or receipt generation, your product offers will display a “Downloadable invoice” or a ‘Downloadable receipt” badge (depending on your VAT situation), which increases conversion by business customers.
To get a buyer’s VAT information:
After you have saved the settings, the reports mentioned in step 3. below will include the following columns:
Yes. If the invoice/receipt status is pending or it failed, this order will be counted as an IDR defect since no invoice/receipt was uploaded to Seller Central. In these cases, ensure the file is a PDF document (not image or other formats) and upload the invoice again. If the issue persists, contact Selling Partner Support.
IDR is calculated and updated daily. If you miss one order, upload the invoice as soon as possible. Only selling partners who repeatedly fail to maintain an IDR under the target, will be at risk of account deactivation, therefore, please take actions to proactively check your orders and make sure you upload invoices or receipts within one working day irrespective of public holidays.
Orders with no invoices or receipts uploaded will appear under this tab as soon as the order is shipped. Shipment date may differ from order date and the “Ship by” date you see in orders detail page is a promise and not the actual shipment date. We advise you to check this tab regularly.
For FBA orders:
Go to Reports > Fulfilment by Amazon > Sales > Amazon Fulfilled Deliveries – Tax Invoicing report.
Go to Reports > Fulfilment by Amazon > Sales > Customer Shipment Sales > fill Amazon order ID with the ID of the order > chose a date range > click Generate Report.
For MFN orders:
Go to Orders > Manage Orders > Shipped > View MFN orders > Tick Business customer filter > Click on the specific order ID > Ship date will appear below a section called Packagex.
As per Amazon Business invoicing policy, you are required to upload an invoice or receipt within one working day after shipment confirmation. Credit notes on returns from Amazon Business customers must be provided within one business day of return confirmation.