| wyol_US_flow.png When an international customer visits your site, Global‑e converts the price of your product to the customer’s currency. At checkout, the customer is presented with the financial details of the transaction: The price of the product minus discounts Shipping Duties and taxes After verifying the validity of the transaction, Global‑e collects the payment and the order is packed and shipped. 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. Global‑e then converts the amount of the sale back to your currency and refunds you the amount of the sale, deducting relevant fees and subsidies. If you are using your own carriers then the shipping fee, plus duties and taxes (if paid for by the carrier), are included in the refund. |
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Duties and Taxes Process
Below are two examples of the financial process that takes place between EU Merchants and both EU and non-EU customers. EU Merchant- EU Customer Example: Intra EU “distance selling” to Germany (VAT = 19%)- Product price in Europe = €121 (€100 + 21% VAT) - exported into the EU (Germany)
- Shipping charged to customer €5
- Product price in Europe = €121 (€100 + 21% VAT) - exported out of the EU
- Shipping 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 price 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.| Amount Excl. VAT | VAT | Amount Incl. VAT | ||
|---|---|---|---|---|
| Sales Total | €17108.55 | €3592.80 | €20701.35 | Sales Example |
| Refunds Total | (€625.40) | (€131.33) | (€756.73) | Refunds Example |
| Amount to Invoice | €16483.15 | €3461.47 | €19944.62 | |
| Service Fee | €1262.55 | €265.14 | €1527.69 | 7% of Total Order Value |
| Shipping Subsidies (EU) | (€390.42) | (€81.99) | (€472.41) | Shipping Example |
| Shipping Subsidies (Non-EU) | (€405.10) | €0.00 | (€405.10) | |
| Taxes Subsidization | (€132.30) | £0.00 | (€132.30) | |
| Handling Fee | €76.50 | €16.07 | €92.57 | |
| Returns | (€4.00) | (€0.84) | €4.84 | Returns Example |
| Services and Fees | €931.82 | €82.83 | €1014.65 |
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
