US Merchants with Non-Global-e Carriers (Video)
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.
For more details, see The Reconciliation Process.
Duties and Taxes Process
Merchants can choose between two methods of collecting duties and taxes from customers:
Optional/Forced DDP : Customers pre-pay duties and taxes at checkout, which are passed by Global-e to the Merchant, and in most cases passed on to their shipper. However in some countries, like the US, Global-e will retain and remit these to the authorities directly.
Hidden Forced DDP : Duties and taxes are built into the amount paid by the end customer. For most countries, Global-e will pass the full value of the product to the Merchant, including the duties and taxes intended for the shipper. In some countries like Australia, Global-e will retain and remit these taxes directly to the authorities.
Below are two examples of the financial process that takes place when a customer outside the US purchases from a US Merchant.
Example: Optional/Forced DDP for Duties and Taxes
US Merchant – Israeli Customer
Product price in USD = $100 - exported to Israel
Shipping cost charged to customer $5
Net product sale for Merchant: $100
Net after shipping subsidy: $122
Example: Hidden Forced DDP for Duties and Taxes
US Merchant – EU Customer
Product price in USD = $100 + 30% Country Coefficient – exported to EU
Shipping cost charged to customer $10 (incl. 10% GST)
This process is also used for Switzerland, the UK, New Zealand, and Norway
Net product sale for Merchant: $130
Net after shipping subsidy: $140
Billing Period and Payment Term
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:
Merchant invoice or a Global-e credit note for sales minus refunds.
Payment within two days from the date of reconciliation.
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.
To view the invoice go to the Global-e Merchant Portal > Merchants > Reports > Reconciliation Reports.
Global-e’s Invoice for Services and Fee
Credit note for Net Sale
Global-e Purchase Example
The following purchase example offers a detailed look at the price conversion process.
US Merchant- Spanish Customer
Reconciliation Report Example- US Merchants with Non-Global-e Carriers
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 Fields
Amount Exc. VAT | ||
|---|---|---|
Sales Total | $54993.70 | |
Refunds Total | ($12581.17) | |
Amount to Invoice | $42412.53 | |
Service Fee | $4731.35 | 7.0% of Total Order Value |
Payment Processing Fee | $0.00 | |
Service Fee Adjustment | $0.00 | |
Shipping Subsidies | $2776.66 | |
Taxes Subsidization | $152.07 | |
Handling Fee | $0.00 | |
Returns | ($6.26) | |
Services and Fees | $7653.82 |
Attachment 1
Order Level
Sales Total on the Order Level
Product Level
Sales total on the Product Level
Attachment 2
Lists all the refunds that were issued through Global‑e during the relevant period
Attachment 3
Shipping prices are based on the actual weight that we received from the shipper or measured at our hub
Attachment 4
Includes the details of each returned parcel
Video Overviews: Financial Flow & Weekly Reconciliation Report
Financial Flow
An overview of the financial flow and reconciliation process
Weekly Reconciliation Report
A walk-through of the weekly reconciliation report