eCommerce Glossary
This e-commerce glossary features over 250 essential terms every online seller should know to succeed in digital commerce.
eCommerce Glossary
This e-commerce glossary features over 250 essential terms every online seller should know to succeed in digital commerce.
Invoicing is the process of generating and sending billing documents that detail the products or services sold, along with the amount due, payment terms, and due dates. It serves as a formal request for payment and is essential for financial management, compliance, and cash flow optimization.
For eCommerce businesses, this is a critical part of the payment and order fulfillment process. Digital invoices must be compliant with tax regulations in different countries, include VAT or sales tax calculations, and provide customers with legally valid receipts. Managing invoicing across multiple markets adds complexity, as businesses must comply with local tax laws, issue invoices in different formats, and maintain proper record-keeping.
In eCommerce, it comes with several difficulties, especially for businesses selling internationally:
A Merchant of Record (MoR) handles invoicing on behalf of eCommerce businesses, ensuring compliance with global tax regulations. By managing tax calculation, invoice issuance, and reporting, an MoR allows businesses to focus on growth while avoiding the complexities of international invoicing. This ensures seamless transactions, enhances customer experience, and reduces the risks associated with tax compliance errors.
For online businesses selling internationally, partnering with a Merchant of Record streamlines invoicing, simplifies compliance, and optimizes financial operations.