What is Amazon’s Invoice Defect Rate? Invoice Defect Rate (IDR) – Amazon’s new performance evaluation metric for account health. Tracks and evaluates whether sellers provide invoices (or receipts, if you are not legally obliged to issue VAT invoices) to business buyers based on business buyer orders.
The Invoice Defect Rate (IDR) is calculated based on working 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 the order before 23:59 on Monday. If you confirm the shipment of an order between 00:01 and 23:59 on Friday, you must upload the invoice (or receipt) for the order before 23:59 the following week.
Several common questions about Amazon’s Invoice Defect Rate:
Question 1: How often is the Invoice Defect Rate (IDR) updated?
The Invoice Defect Rate (IDR) metric is updated daily.
Question 2: How is a working day defined?
Monday to Friday are working days. If you confirm shipment between 00:01 and 23:59 on Monday, you must upload the invoice before 23:59 on Tuesday night. If you confirm shipment between 00:01 and 23:59 on Friday, you can upload the invoice before 23:59 on Monday night of the following week.
Question 3: I am not an Amazon Business seller. Does my account also have a performance indicator for invoice defect rate?
The Invoice Defect Rate (IDR) will calculate all orders from corporate buyers. Even if you are not an Amazon Business user (non-Amazon Business seller), you may receive orders from corporate buyers. Once an order is generated, you need to provide the corresponding bills upon request.
Question 4: Do I need to upload invoices before the Invoice Defect Rate (IDR) indicator is released?
Yes. The Amazon Business invoice issuance policy stipulates that from March 20, 2020, all sellers must take action to provide valid VAT invoices or invoices to Amazon Business buyers. However, the Invoice Missing Rate (IDR) only looks at invoicing of orders from the past 7 to 14 days.
Can I reject an order from a business buyer?
You cannot reject an order from a business buyer. Amazon corporate buyers can purchase all items that individual consumers can purchase.
Q: I do not need to pay VAT on the items I sell, nor do I need to enjoy VAT exemption.
Sellers who do not need to pay VAT on the items they sell are still required to provide a receipt for each order from a business buyer in accordance with the Amazon Business invoicing regulations. You can choose to manually upload (IDU) in the order management of the seller platform, or use a third-party service provider to upload receipts.