When Eshopbox is the seller of record for a sales channel on which your products are listed, Eshopbox will invoice your customers for the products they purchase. If customers choose to return your products, Eshopbox will issue credit notes to the customer. The sales channel will make the payment for the sale of goods to Eshopbox after deducting their fees.

For you, accounting with Eshopbox will be mirroring what Eshopbox is doing to the customers, i.e. you need to raise an invoice to Eshopbox for the products sold to the customers. You need to issue credit notes to Eshopbox for the products returned by the customer. Eshopbox will make payments to you after deducting the channel expenses and Eshopbox fees; you need to book these payments in your book of accounts.

How does it work?

Event I: Supply of inventory to Eshopbox fulfilment centre

To supply inventory to Eshopbox FC, you need to register Eshopbox as your Place of Business (POB). You will add Eshopbox FC as a location in your book of accounts. You can then send inventory to Eshopbox fulfilment centres by performing a stock transfer (using a Stock Transfer Note) from your warehouse or by an invoice issued by your supplier (if the inventory is shipped from the supplier's warehouse).

📜 Below is the sample STN wherein Kapascraft has transferred inventory from its business location to Eshopbox fulfilment centre (as your POB).

💡 In your book of accounts, you have transferred inventory from one of your business locations to the other (Eshopbox fulfilment centre as your POB). Inventory movement will not have any impact on Eshopbox ledger.

Event II: Sale of inventory to customers

Once the inventory is received at Eshopbox fulfilment centre, Eshopbox will make your products available to sales channels. When a customer places an order, Eshopbox will ship the item and raise an invoice to the customer.

📜 Below is the sample invoice that Eshopbox raises to the customer for the orders placed.

💡 You have to raise an invoice to Eshopbox for the orders shipped to your customers at a later stage.

Event III: Issuing refunds to customers for returns and cancellations

When a customer returns an order, items are picked up from the customer's doorstep and are received at Eshopbox fulfilment centres. Eshopbox will refund the amount by issuing a credit note to the customer.

📜 Below is the sample credit note that Eshopbox issues to the customer for the returned order.

💡 You have to issue credit notes to Eshopbox for the return orders at a later stage.

Event IV: Issue invoices and credit notes to Eshopbox

You need to add Eshopbox as a customer in your book of accounts. You have to raise invoices and issue credit notes to Eshopbox. This can be done periodically according to your convenience — i.e daily, weekly or monthly.

💡 The item value of an invoice that you raise to Eshopbox will be the same as the value at which Eshopbox has invoiced the customer.

For example, Eshopbox receives 1000 orders in a month, out of which 100 are returned. You need to raise an invoice of 1000 order items and issue a credit note of 100 returned items to Eshopbox.

Event V: Booking channel fees

The sales channel will charge various fees for selling your products. These fees include commission fee, shipping fee, payment collection fee, referral fee, closing fee, and more. The sales channel will raise an invoice for these channel expenses to Eshopbox. In turn, Eshopbox will raise the sales channel fees to you.

📜 Below is the sample channel fees invoice that the channel raises to Eshopbox.

📜 Below is the sample credit note that the channel issues to Eshopbox.

Event VI: Booking of payments

The sales channel will make payments to Eshopbox after deducting their fees as per their payout cycle. Eshopbox will make payments to you on a periodic basis as per the agreed terms. You need to book these payments in your book of accounts against the invoices raised by you to Eshopbox.

FAQs

How is Eshopbox invoicing my products to customers without purchasing them from me?

Continuous Supply of Goods and Services under GST allows Eshopbox to invoice your products to customers and purchase them from you at a later date. It is applicable when:

  • supply of goods which is provided or will be provided is on a continuous or recurring basis

  • the supplier and recipient are contract-bound

  • the supplier raises invoices to the recipient on a periodic basis

Understand more about the continuous supply of goods and services.

Is there any requirement for an electronic waybill (e-waybill)?

Eway Bill (electronic waybill) is a receipt generated for the movement of goods. It is generated on the eWay Bill Portal. It must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Place of Business (POB). It is required for both interstate and intrastate movement of goods.

Eway bill generation

Scenario

Responsibility

Supply of goods to Eshopbox FC > INR 50,000

You

Supply of goods to customer > INR 50,000

Eshopbox

Understand more about Eway Bill

When do I get paid?

Eshopbox will make payments to you as per the agreed remittance cycle.

Do I need to create individual customers in my books of account?

Eshopbox is invoicing customers at an individual level for the sale of your products. However, you don't need to create individual customers in your book of accounts. Make Eshopbox a customer in your book of accounts — and raise invoices and credit notes to Eshopbox.

What is the TDS applicability on channel fees?

Eshopbox raises an invoice to you for fees incurred to sell your merchandise on sales channels. This needs to be considered as a contractual expense and TDS need to be deducted @2% u/s 194C of Income Tax. You need to deduct and deposit 2% TDS on the total channel expenses, excluding the Goods and Services Tax (GST) to the government. Once deposited, you can submit the TDS certificate to Eshopbox for reimbursement.

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