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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 fees
  • 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.

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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 non-UK customer makes a purchase from a British Merchant. British Merchant – Non-UK Customer Example: Optional/Forced DDP for Duties & Taxes
  • Product price in UK = £120 (£100 + 20% VAT) - exported out of the UK
  • Shipping cost charged to customer £5
Net product sale for Merchant: £100 Net after shipping subsidy: £105 British Merchant – Non-UK Customer Example: Hidden Forced DDP for Duties & Taxes
  • Product price in UK = £120 (£100 + 20% VAT) - exported out of the UK
  • Shipping cost charged to customer £5
Net product sale for Merchant: £120 Net after shipping subsidy: £115

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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.

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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

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Global-e Purchase Examples

The following two purchase examples offer a detailed look at the price conversion process. There are two types of 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.
British Merchant – Non-UK Customer Example of dynamic pricing
British Merchant – Non-UK Customer Example of fixed pricing

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Reconciliation Report Example

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. For a video describing the Reconciliation Report, see Weekly Reconciliation Report.

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Sales Total

Order Level
Sales Total on the Order Level Product Level
Sales total on the Product Level

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Refunds Total

Lists all the refunds that were issued through Global‑e during the relevant period

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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

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Returns

Includes the details of each returned parcel

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Video Overviews: Financial Flow & Weekly Reconciliation Report

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Financial Flow

An overview of the financial flow and reconciliation process

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Weekly Reconciliation Report

A walk-through of the weekly reconciliation report