- The price of the product minus discounts
- Shipping fees
- Duties and taxes
- If you are shipping the products directly from your hub then the final title transfer takes place in the origin country, making this a domestic B2B sale
- If you are shipping from a Global-e hub, the final title transfer occurs when the goods arrive at the domestic Global-e hub.
Duties and Taxes Process
Merchants can choose between two methods of collecting duties and taxes from customers:- Optional/Forced DDP : Customers pre-pay duties and taxes at checkout, which are passed by Global-e to the Merchant, and in most cases passed on to their shipper. However in some countries, like the US, Global-e will retain and remit these to the authorities directly.
- Hidden Forced DDP: Duties and taxes are built into the amount paid by the end customer. For most countries, Global-e will pass the full value of the product to the Merchant, including the duties and taxes intended for the shipper. In some countries like Australia, Global-e will retain and remit these taxes directly to the authorities.
- Product price in UK = £120 (£100 + 20% VAT) - exported out of the UK
- Shipping cost charged to customer £5
- Product price in UK = £120 (£100 + 20% VAT) - exported out of the UK
- Shipping cost charged to customer £5
Billing Period And Payment Terms
The reconciliation process typically takes place on a weekly basis and results in a comprehensive report of all Merchant sales for the week. Based on the report, Global-e pays the Merchant the sum of all products sold internationally during that week plus any relevant shipping, duties, and taxes, minus the agreed service fee. Global-e’s standard payment terms:- 80% of the net proceeds are paid weekly, up to two business days after the weekly reporting day.
- 20% of the net proceeds are paid seven days after the end of each calendar month.
Invoicing
When the Reconciliation Report is generated, Global-e also provides Merchants with two invoices:- A self-billing invoice for sales less refunds.
- An invoice for Global-e’s services, fees, and any shipping subsidies.
Global-e Purchase Examples
The following two purchase examples offer a detailed look at the price conversion process. There are two types of conversions:- Dynamic pricing - Global-e converts the customer currency on the website for the Merchant.
- Fixed pricing - The Merchant gives Global-e the customer’s price in the customer’s currency and that information is fed into the website.
Reconciliation Report Example
Below is a sample Reconciliation Report with a breakdown of the services and fees for that week. For a list of all the report fields and their definitions, see Reconciliation Report. For a video describing the Reconciliation Report, see Weekly Reconciliation Report.| Amount Excl. VAT | VAT | Amount Incl. VAT | ||
|---|---|---|---|---|
| Sales Total | £23528.85 | £4705.77 | £28234.62 | Sales Example |
| Refunds Total | (£2106.68) | (£423.79) | (£2530.47) | Refunds Example |
| Amount to Invoice | £21422.17 | £4281.98 | £25704.15 | |
| Service Fee | £1964.01 | £392.80 | £2356.81 | 8.00% of Total Order Value |
| Service Fee Adjustment | £0.00 | £0.00 | £0.00 | |
| Shipping Subsidies (EU) | (£276.23) | £0.00 | (£276.23) | Shipping Example |
| Shipping Subsidies (Non-EU) | (£373.52) | £0.00 | (£373.52) | |
| Taxes Subsidization | (£371.48) | £0.00 | (£371.48) | |
| Handling Fee | £0.00 | £0.00 | £0.00 | |
| Returns | £14.97 | £2.99 | £17.96 | Returns Example |
| Services and Fees | £927.81 | £389.81 | £1317.62 |
Sales Total
Order Level
Refunds Total
Shipping Subsidies
Shipping prices are based on the actual weight that we received from the shipper or measured at our hub.
Returns
