E-commerce companies and suppliers can agree on the amount, method and time of payment through payment terms. According to the provisions of the contract, payment of goods is a basic obligation that e-commerce companies need to bear to suppliers. E-commerce companies should carefully check all aspects to prevent procurement risks and safeguard their own interests. So, what are the specific contents of payment terms?
(1) Contract price
The payment terms must include the content of the contract price, and the capitalization of the contract price should be consistent. If the goods are calculated based on the unit price, the unit price, total price and calculation method of the goods should be clearly indicated. If the contract involves overseas business, it is necessary to clearly stipulate which currency to use for settlement to avoid currency appreciation or depreciation due to exchange rate changes.
(2) Payment method
In the payment terms, both parties should agree on a clear payment method. Payment, as the most important obligation of e-commerce companies, involves specific matters such as payment conditions, payment methods, and invoicing
The payment conditions mainly depend on the order of delivery and payment, that is, payment before delivery or delivery after acceptance. There are two main payment methods, namely cash transactions and bank transfers. The former usually carries greater risks.
In addition, in order to protect their own interests, e-commerce companies can also add a security deposit clause to the payment terms. For example, if the supplier fails to provide the invoice for the goods as agreed, the e-commerce company can enforce the security deposit clause.
(3) Payment amount
The payment amount usually refers to the total amount specified in the contract. However, in the process of performing the contract, there may be inconsistencies between the payment amount and the total amount specified in the contract. For example, the contract stipulates that the goods will be delivered and paid in batches. In this case, the amount paid in each batch is only a part of the total amount. Also, during the performance of the contract, the e-commerce company may increase or decrease the purchase volume of the goods due to actual needs. In this case, the payment amount should be calculated according to the actual purchase volume.
Tips
In the process of performing the contract, the payment terms are often set in correspondence with the delivery terms. The two will affect each other. E-commerce companies should check carefully.