Your billing from SPACEGOATS is created monthly and consists of several components. Keep reading to get an overview and an explanation of the individual parts of the billing and accounting process as well as the respective documents that are issued.
Goods Credit Note (GC)
The first step is the delivery of your goods to Amazon. In the following month you will receive a delivery credit (GC) for the delivered quantity and the respective sales price that we pay you for your products.
The sales price we pay you for your delivered products is RRP * 0.3 (minimum 2 EUR). We have developed this formula from experience and use it to ensure that we pay you an amount as close as possible to the net profit of your product on Amazon. This does not mean that you will only get paid this amount!
Example: The MSRP of your product is € 29,99. Our selling price is therefore: € 29,99* 0,3 = 9€.If you deliver 20 pieces to Amazon in July, you will get a credit for 20 pieces. * 9 € = 180 € at the beginning of August.
The GC is part of our monthly billing. You will receive only one per delivery and per month. However, we do not pay you the full credit amount at once, as this would often mean immense advance payments for us. Instead, as part of the monthly settlement, we pay you the sales price for the amount of products that were actually sold in the previous month.
Partial Payment of the Goods Credit Note
We will pay you the GC amount for the number of items sold minus 10% withholding.We have to withhold this 10% for the time being because Amazon also pays us late. We will pay out the withheld amount next month.
The remaining balance will be paid out in two instalments: you will receive the first half on the 4th and the other half on the 18th of the month.
Example:
You shipped 20 items worth €9 each to Amazon in July and received a GC for €180 in August.In August you sell 10 of these products. That means we pay you the credit amount for 10 pieces (90 €) minus 10% (9 €). Therefore we pay out 81 € in September: 40.5 € on the 4th and 40.5 € on the 18th. You will receive the 9 € retained so far in October.
Difference Credit Note (DC) and Difference Invoice (DI)
If the Amazon net profit of your sold product is higher than our selling price, you will get the additional positive difference amount credited on a difference credit (DC). Difference credits are used to adjust the initial selling price after the fact. The difference is calculated as the difference between the net profit of the Amazon sale and the SPACEGOATS sales price as per the merchandise delivery credit. This adjustment will typically be positive, meaning you will receive an additional payout. This variable compensation component is calculated as follows:
Gross revenue from Amazon sales
Less applicable sales tax
Less Amazon shipping costs
Less Amazon sales fees
Less Amazon inventory storage costs
Less sales margin (4.9%, or 8.5%)
Less the purchase price agreed between you and SPACEGOATS (net)
= Amount of variable compensation
So this compensation amount now includes, for example, the inventory cost and the 4.9% (Selling as a Service) , 8.5% (Full service) or the agreed % (Enterprise) markup.
Example:
The products for which we pay you €9 according to the T&C are sold on Amazon for €29.99 to end customers.
Gross revenue from Amazon sales (29,99€)
Less applicable VAT on sales (-4,79€ with 19% VAT)
Less Amazon shipping costs (-2,99€)
Less Amazon sales fees (15%) (-4,50€)
Less Amazon inventory cost (-0,13€)
Less sales margin (4.9%, or 8.5%) (-1.47€)
Less the purchase price agreed between you and SPACEGOATS (net) (-9€) (subtracted here because the 9€ is listed on the GC and paid on a pro-rata basis).
We will pay you this variable compensation portion of 7,11€ as a difference credit on September 4.
Service Invoice (SI)
Another part of your monthly billing is the Service Invoice (SI). We use it to charge for example incurred delivery and storage fees, the basic fee, and other services you booked (such as PPC costs or packaging registration).
Goods Invoice (GI)
Additionally, we issue Goods Invoices. Starting in the billing period of November 2021, a GI is issued in order to reflect stock adjustments and remissions. GIs do not have to be paid anymore since they only act as a corrective document to the original GC that is mentioned in the GI invoice items.
Booking overviews
Finally, you’ll receive three booking overviews for each accounting month. These show an overview of your payouts, how the difference amounts are calculated as well as further details that are relevant to your accounting:
- Overview 1: Payments on the 4th of the month
- Overview 2: Payments on the 18th of the month
- Overview 3: List of already shipped products and their sales in the respective period (= basis for GC payment)