European Merchants with Non-Global-e Carriers
 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:
After verifying the validity of the transaction, Global‑e collects the payment and the order is packed and shipped.
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
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
Net product sale for Merchant: €100
Net including shipping: €105
EU Merchant - Non-EU Customer
Example: “Pocket” VAT outside the EU
Product price in Europe = €121 (€100 + 21% VAT) - exported out of the EU
Shipping charged to customer €5
Net product sale for Merchant: €121
Net after shipping subsidy: €126
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.
To view the invoice go to the Global-e Merchant Portal > Merchants > Reports > Reconciliation Reports.
Invoice for Service and Fees
Credit Note for Net Sales
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.
Dutch Merchant- EU customer
Example of dynamic pricing
Base Assumptions: | ||
Order value (based on Dutch pricing): | EUR 121.00 | 100.00 EUR excl VAT |
Sweden VAT Rate: | 25.00% | |
Shipping charge to customer (flat price decided by merchant): | SEK 50.00 | Including customer VAT |
Conversions and hedge spread: | 2.45% | Covers 90 days returns at same FX rate and payment schemes conversion fees |
Exchange rate EUR to SEK: | 10.223 | |
Money Flow: | ||
Calculation of pricing for the customer: | ||
Base price in EUR for EU customer: | EUR 100.00 | |
Base price in EUR including customer VAT (25%): | EUR 125.00 | |
FX rate - including Global-e FX conversion and hedging spread: | 10.4735 | |
Price of products in SEK: | SEK 1,309.18 | Base price, including customer VAT * Conversion rate, including hedge |
Price with marketing rounding (extra margin for merchant): | SEK 1,350.00 | Rounding rate 3.12% |
Charge for shipping to customer: | SEK 50.00 | Shipping Flat Rate |
Total Customer Payment, incl VAT: | SEK 1,400.00 | Price presented at checkout |
Global-e payment to Merchant, excl VAT (EUR): | EUR 103.12 | 1350 / 1.25 / Conversion rate |
Global-e charge to merchant for service fee (7.00%): | -EUR 9.36 | Percentage of Total Order Value |
Global-e credit to Merchant shipping: | EUR 3.82 | The difference between actual rate card cost and the shipping cost Merchant decided to charge customer |
Net amount for Merchant (No additional charges for acquiring, fraud, hedge...): | EUR 97.58 | |
Dutch VAT (21%): | EUR 20.49 | Merchant VAT |
Net amount for Merchant, incl. VAT: | EUR 118.07 | |
Dutch Merchant- Non-EU customer
Example of dynamic pricing
Base Assumptions: | ||
Order value (based on Dutch pricing): | EUR 121.00 | 100.00 EUR excl VAT |
Country Coefficient: | EUR 0.20 | |
Shipping charge to customer (flat price decided by merchant): | USD 10.00 | Including customer VAT |
Conversions and hedge spread: | 2.45% | Covers 90 days returns at same FX rate and payment schemes conversion fees |
Exchange rate EUR to USD: | 1.146 | |
Money Flow: | ||
Calculation of pricing for the customer: | ||
Base price in EUR for Non-EU customer: | EUR 120.00 | |
FX rate - including Global-e FX conversion and hedging spread: | 1.1741 | |
Price of products in USD: | USD 140.89 | Base price, including coefficient * Conversion rate, including hedge |
Price with marketing rounding (extra margin for merchant): | USD 145.00 | rounded according to configuration |
Charge for shipping to customer: | USD 10.00 | Shipping Flat Rate |
Total Customer Payment: | USD 155.00 | Price presented at checkout |
Global-e payment to Merchant, excl VAT (EUR): | EUR 123.53 | 145 / Conversion rate |
Global-e charge to merchant for service fee (7.00%): | -EUR 9.24 | Percentage of Total Order Value |
Global-e credit to Merchant shipping: | EUR 8.52 | The difference between actual rate card cost and the charge Merchant decided to charge customer |
Net amount for Merchant (No additional charges for acquiring, fraud, hedge...): | EUR 122.78 | |
Dutch VAT (21%): | EUR 23.99 | Merchant VAT |
Net amount for Merchant, incl. VAT: | EUR 146.77 | |
Dutch Merchant- Swedish customer
Example of Fixed Pricing
Base assumptions | ||
Dutch base price | EUR 121.00 | 100.00 GBP excl VAT |
Fixed Price in SEK: | SEK 1,300.00 | Incl. customer VAT |
Spot Exchange Rate (EUR to SEK) | 10.223 | |
Shipping charge to customer (flat price decided by Merchant) | SEK 50.00 | Including customer VAT |
Conversions and hedge spread: | 2.45% | Covers 90 days returns at same FX rate and payment schemes conversion fees |
Money Flow: | ||
Fixed Price in SEK: | SEK 1,300.00 | |
FX rate - including Global-e FX conversion and hedging spread (2.45%) | 10.473 | |
Total Product, incl. VAT: | SEK 1,300.00 | Price in EUR, VAT inclusive set by merchant |
Charge for shipping to shopper (Set by merchant) | SEK 50.00 | |
Total Customer Payment, incl. VAT: | SEK 1,350.00 | Price presented at checkout |
Global-e payment to Merchant in Euro (ex Swedish VAT) | EUR 99.30 | Final price excluding customer VAT converted to GBP |
Global-e charge to merchant for service fee (7.00%) | -EUR 9.02 | Percentage of Total Order Value |
Global-e credit to Merchant for shipping subsidy | EUR 3.82 | The difference between actual rate card cost and the shipping cost Merchant decided to charge customer |
Net amount for Merchant (No additional charges for acquiring, fraud, hedge...): | EUR 94.09 | |
Dutch VAT (21%): | EUR 19.76 | Merchant VAT |
Net amount for Merchant, incl. VAT: | EUR 113.85 | |
Reconciliation Report Example
Below is a sample Reconciliation Report with a breakdown of the services and fees.
Amount Excl. VAT | VAT | Amount Incl. VAT | ||
|---|---|---|---|---|
Sales Total | €17108.55 | €3592.80 | €20701.35 | |
Refunds Total | (€625.40) | (€131.33) | (€756.73) | |
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 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 | |
Services and Fees | €931.82 | €82.83 | €1014.65 |
Sales Total
Order Level
Sales Total on the Order Level
Product Level
Sales total on the Product Level
Refunds Total
Lists all the refunds that were issued through Global‑e during the relevant period
Shipping Subsidies
Shipping prices are based on the actual weight that we received from the shipper or measured at our hub.
shipping costs are reconciled based on the date of the shipment
Returns
Includes the details of each returned parcel