What is PI (Pro forma invoice)

An invoice provided by a seller before the shipment of product, informing the buyer of the types and amounts of products to be shipped, their price, and essential specifications (weight, dimension, etc.).

A proforma invoice is an initial bill of sale delivered to customers in advance of dispatch or delivery of products. The invoice will typically explain the bought items and other relevant details such as the shipping weight and transportation fees. It indicates the type and quantity of products, their price, and other significant information such as weight and transportation fees. They differ from a general statement rather than being a request or demand for payment.

The customer agrees to the indicated cost on the pro forma bill, And then the seller delivers the product. There’s no way back after that the seller fulfilled its end of the bargain as it’s all agreed up front. Also, There are different advantages to pro forma bills, They’re perfect if the seller doesn’t have the details for a commercial invoice – for example, before the goods are delivered. As an extension of the pro forma invoices are often sent to announce that the value of products for customs to get a smooth delivery process. They are not a payment demand or request. Pro forma invoices are ‘good faith’ agreement, so your client is aware of what to expect. Some businesses request proforma statements for their internal purchasing approval process.

A pro forma invoice is a document that outlines the terms of a sale or purchase of goods, typically before the goods have been shipped or delivered. In the context of Amazon and other online marketplaces, a pro forma invoice may be used to confirm the details of a sale or purchase and to facilitate payment.

There are a few key elements of a pro forma invoice that sellers on Amazon and other online marketplaces should be aware of. These elements include:

  • Product details: A pro forma invoice typically includes detailed information about the products that are being sold or purchased, including the product name, quantity, and any relevant model or serial numbers.
  • Prices: A pro forma invoice must include the prices of the products being sold or purchased, as well as any applicable taxes, duties, or other fees.
  • Payment terms: A pro forma invoice typically includes information about the payment terms of the sale or purchase, including the payment method, any applicable discounts or promotions, and any deadlines for payment.
  • Shipping details: A pro forma invoice may also include information about the shipping details of the sale or purchase, including the shipping address, carrier, and tracking number.

There are a few key advantages and disadvantages of using a pro forma invoice in the context of Amazon and other online marketplaces. Some of the advantages include:

  • Improved clarity: A pro forma invoice can help to improve the clarity of a sale or purchase by outlining the terms and conditions in a clear and concise manner. This can be particularly useful for sellers who need to ensure that all of the details of the sale or purchase are understood and agreed upon by both parties.
  • Facilitation of payment: A pro forma invoice can also facilitate payment by providing a clear and comprehensive summary of the products and prices involved in the sale or purchase. This can be particularly useful for buyers who are looking to confirm the details of their payment before proceeding.

There are also a few disadvantages of using a pro forma invoice in the context of Amazon and other online marketplaces. Some of the disadvantages include:

  • Increased complexity: The process of creating and maintaining a pro forma invoice can be complex, particularly for sellers who are managing a large number of sales or purchases or who have a wide range of products and prices.
  • Risk of errors: There is also a risk of errors or omissions on a pro forma invoice, which can lead to confusion or dissatisfaction for buyers. This can be particularly concerning for sellers who rely on customer satisfaction to drive their business.

In summary, a pro forma invoice is a document that outlines the terms of a sale or purchase of goods, typically before the goods have been shipped or delivered. In the context of Amazon and other online marketplaces, a pro forma invoice may be used to confirm the details of a sale or purchase and to facilitate payment. There are a few key advantages and disadvantages of using a pro forma invoice in the context of Amazon and other online marketplaces, including improved clarity and facilitation of payment, and increased complexity and risk of errors.