What is the Amazon Invoice Defect Rate?
Invoice Defect Rate (IDR) – A new performance metric introduced by Amazon in Account Health. For orders from corporate buyers, we track and assess whether the seller has provided the invoice (or receipt, if you are not legally obliged to issue a VAT invoice) to the corporate buyer.
The Invoice Defect Rate (IDR) is calculated based on business days (Monday to Friday). For example, if you confirm the shipment of an order between 00:01 and 23:59 on Monday, you must upload the invoice (or receipt) for that order before 23:59 on Tuesday. If you confirm the shipment of an order between 00:01 and 23:59 on Friday, you must upload an invoice (or receipt) for that order by 23:59 the following Monday.
What are some common issues with Amazon invoice defect rate?
Q1: How often is the Invoice Defect Rate (IDR) performance indicator updated?
The Invoice Defect Rate (IDR) indicator is updated daily.
Q2: How do you define a working day?
Monday to Friday are working days. If you confirm shipment between 00:01-23:59 on Monday, you must upload the invoice before 23:59 on Tuesday evening. If you confirm shipment between 00:01 and 23:59 on Friday, you can upload the invoice before 23:59 on Monday evening of the following week.
Q3: I am not an Amazon Business seller. Will my account also have an Invoice Defect Rate (IDR) performance indicator?
The Invoice Defect Rate (IDR) will count all orders from corporate buyers. Even if you have not opened Amazon Enterprise Purchasing (non-Amazon Business seller), you may still receive orders from corporate buyers. Once the order is placed, you will need to provide the corresponding documents as required.
Q4: Do I need to upload invoices for orders placed before the IDR metric was launched?
Yes. Starting from March 20, 2019, Amazon Business invoice issuance policy requires all sellers to actively provide valid VAT invoices or receipts for orders from Amazon Business buyers. However, the Invoice Defect Rate (IDR) only looks at order invoicing in the past 7 to 14 days.
Q5: Can I refuse orders from corporate buyers?
You cannot reject orders from business buyers. Amazon Business buyers can purchase all products that individual consumers can purchase.
Q6: I do not need to pay VAT on the goods I sell, or I enjoy VAT exemption. What should I do?
According to Amazon Business invoicing policy requirements, sellers who are not required to pay VAT on the goods they sell are still required to provide receipts for each order from business buyers. You can choose to manually upload (IDU) through Seller Central Order Management, or use a third-party service provider to upload receipts.
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