5 Key Factors To Include On Your e-Commerce Invoice

Key Factors

As a business owner, you know that issuing invoices is an important part of your job. But did you know that there are specific things you need to include on your e-commerce invoices?

If you don’t include all the necessary information, you could run into trouble with customers or tax authorities. The type of invoice you issue can even make a big difference in terms of how your customers perceive you.

In this article, we will discuss the five key factors that you need to focus on when creating your e-commerce invoices.

Let’s get started.

Why is Issuing a Complete Invoice Important?

Apart from keeping track of all items and services sold, invoices are also crucial for your company’s bookkeeping. Starting your business with a well-maintained bookkeeping system is important, as it will help you keep track of your finances. Not only that, but it will also help to ensure contract compliance too. 

Invoices also protect both the customer and the business owner in case of any disputes that may arise. In fact, tax authorities often request copies of invoices when investigating businesses for tax evasion.

Even if it’s a tedious process, maintaining your books will also help you keep a close eye on how to improve your business’ profit margins and bottom line.

Key Things to Include

When it comes to issuing invoices for online sales, there are certain pieces of information that need to be included in order to make them legally binding. We’ll go through this list below.

Your Business Details

Make sure your company’s full legal name is included on the invoice, as well as your registered business address and contact information. This will help prove that the invoice was issued by you, the legitimate business owner.

In addition to having these on your invoice because the law requires it, it will also help your customer get back to you if  they have any questions or issues with the invoice or their order.

Even better, it will help them remember where they ordered that amazing product they purchased before, if your invoice clearly states your company’s contact information.

Your Customer’s Information

Having your customer’s information on the invoice is not only legally required, but this helps your business keep track of customer information and preferences.

Many brick and mortar shops tend to wave aside these details when issuing receipts, but the benefit of an e-Commerce invoice is that access to these information is easier since everything is online.

Detailed Purchase Information

List the products or services you’re invoicing for, including their quantity, description and price. This will help the customer understand what they’re being billed for and prevent any misunderstandings later down the process.

If you offer a discount on bulk orders, make sure to list that here too, both for you and your customer’s records.

Including a detailed list of what was purchased on the invoice is always helpful for your customers, especially if it’s an item they haven’t ordered before from you. If you can include pictures of the product and its SKU, this will also help them verify that they received the correct item.

Details and Modes of Payment

Make sure payment details are clearly present on the invoice to encourage quick payment. You can choose to add your bank account information on the invoice or include a link where they can pay online.

For e-commerce businesses who ship products internationally, including details about how the customer can pay from their own country should also be included. If you are accepting payments in different currencies, make sure that is also included on the invoice so there’s no confusion when it comes time to make payment.

Include a due date for payment as well so your customers will know when their payments are expected. For e-commerce businesses with multiple clients, it is important that they include this to avoid confusion and late payments from their buyers.

Required Details and Tax Rules

There are more parts of an invoice that businesses are legally bound to include, and this can differ between countries. Aside from the above items, the most common items to be included are:

  • The word “invoice” displayed prominently
  • A unique invoice serial number
  • Date of the invoice
  • Tax amounts and details
  • Total amount due
  • Terms and conditions

But you should check your local laws for any extra details you need to include. If you’re selling overseas, note that you may need to include other information for the invoice to be valid in your customer’s country — it’s a good idea to check with them before issuing the invoice if they require extra information.

This can all be a little overwhelming, but using automated invoicing software can help you make sure you’re including all the right information, and that it’s formatted correctly and professionally.

Additional Tips For Your e-Commerce Invoice

When issuing invoices for your e-Commerce business, make sure any policies you have in place are clearly stated in your invoice to prevent any confusion with your customers.

In today’s e-Commerce market, returns and exchanges are common occurrences and including your policies around them can be very helpful to your customers. Whether you offer exchanges or refunds, clearly outlining these on the invoice can save you time from customers having to ask for these details.

Conclusion

Including all of the above details on your e-Commerce invoice will help make it easier to access and view information while being able to process and record payments more efficiently.

The time spent writing out invoices can add up quickly as you grow, so ensuring that each one includes everything needed is crucial for keeping track of sales activities, and in turn, of the growth of your e-Commerce business.

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Basic Bio: 

Uwe is the Founder and CEO of InvoiceBerry. invoiceberry helps small businesses and freelancers to create, send and manage their invoices online. He’s been in the tech scene for over 15 years with companies ranging from FinTech to AdTech and games publishing. His newest venture is BlogHandy, a WordPress alternative

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