- The price of the product minus discounts
- Shipping
- 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 USD = $100 - exported to Israel
- Shipping cost charged to customer $5
- Product price in USD = $100 + 30% Country Coefficient – exported to EU
- Shipping cost charged to customer $10 (incl. 10% GST)
- This process is also used for Switzerland, the UK, New Zealand, and Norway
Billing Period and Payment Term
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:- Merchant invoice or a Global-e credit note for sales minus refunds.
- Payment within two days from the date of reconciliation.
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 Example
The following purchase example offers a detailed look at the price conversion process. US Merchant- Spanish Customer
Reconciliation Report Example - US Merchants with Non-Global-e Carriers
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 Video Overviews: Financial Flow & Weekly Reconciliation Report.| Amount Exc. VAT | ||
|---|---|---|
| Sales Total | $54993.70 | Sales Example |
| Refunds Total | ($12581.17) | Refunds Example |
| Amount to Invoice | $42412.53 | |
| Service Fee | $4731.35 | 7.0% of Total Order Value |
| Payment Processing Fee | $0.00 | |
| Service Fee Adjustment | $0.00 | |
| Shipping Subsidies | $2776.66 | Shipping Example |
| Taxes Subsidization | $152.07 | |
| Handling Fee | $0.00 | |
| Returns | ($6.26) | Returns Example |
| Services and Fees | $7653.82 |
Sales Total
Order Level
Refunds Total
Shipping Subsidies
Returns
