How Money Flows Through AWS Marketplace

This article provides an overview of how billing, invoicing, and disbursement work when a customer purchases a product through AWS Marketplace, whether through a Public Offer or a Private Offer. It also explains how sellers receive payments and how to access related financial reports.

1. Customer Purchase

Public Offer

• The buyer subscribes directly to the publicly listed product and agrees to the pricing shown on the AWS Marketplace listing.

• Once subscribed, AWS Marketplace activates the product. For metered or usage-based products, usage begins accumulating immediately according to the product’s metering model.

Private Offer

• The seller creates a custom Private Offer with negotiated pricing and terms for a specific buyer.

• When the buyer accepts the Private Offer, AWS Marketplace activates the subscription according to those agreed-upon terms.

• Private Offer pricing applies only to the buyer who accepted it.

   

2. Billing by AWS

For both Public and Private Offers:

• AWS acts as the merchant of record.

• The customer receives charges on their existing AWS bill.

• All charges appear on the customer’s consolidated AWS invoice, not on a vendor-issued invoice.

• For recurring, subscription, or usage-based products, AWS bills customers on its standard billing cycle based on the applicable pricing terms.

3. Payment Collection by AWS

• Customers pay AWS directly using their configured AWS payment methods.

• AWS manages all tax calculation, collection, and remittance in accordance with regional requirements.

   

4. Disbursement to the Seller

Once AWS has collected payment from the customer:

• AWS disburses the seller’s share of revenue to the bank account configured in the AWS Marketplace Management Portal (AMMP).

• Marketplace fees (if applicable) are deducted automatically before payout.

• Sellers can choose their disbursement frequency:

  • Daily disbursements (as funds become available), or

  • Monthly disbursements (on a selected day between the 1st and the 28th of each month).

• Disbursement preferences can be updated at any time via AMMP.

5. Reporting and Reconciliation

Sellers have access to detailed financial reporting in AMMP, including:

• Disbursement reports

• Transaction and usage reports

• Private Offer reporting

• Tax and financial documentation

AWS provides dashboards and reports to help sellers reconcile payments with customer activity and revenue.

6. Summary of the AWS Marketplace Payment Flow

1. The customer subscribes to a Public Offer or accepts a Private Offer.

2. AWS Marketplace activates the subscription.

3. AWS invoices and collects payment from the customer.

4. AWS distributes net revenue to the seller based on the seller’s chosen disbursement schedule.

5. Sellers use AMMP reporting tools to track revenue and reconcile payouts.