Invoices are a legal document issued by the seller to the buyer to record the financial transaction of the sale. It has various purposes, such as proof of purchase, as a legal document for tax purposes, etc.
Invoices are important in eCommerce because it is required by the law. It makes the financial transaction between the seller and the buyer seamless.
eCommerce store owners send out invoices as a formal confirmation of the purchase. Invoices also act as a medium for communicating the payment instructions to the buyer. It includes information on how much the buyer should pay and when it’s due.
Invoices also help in bookkeeping for both buyers and sellers. It makes it easy to track and keep records of financial transactions.
Also, when there’s a dispute about a purchase or a refund request, the invoice can be used as a purchase agreement. It contains information such as the product details, quantity, billing and shipping address of the buyer, price, tax details, etc.
Also Read: Difference Between Quotes and Invoices in eCommerce