Flexible Payment Scheduler Streamlines Long-Term Contracts in AWS Marketplace

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We are excited to share the introduction of the Flexible Payment Scheduler, a new feature in AWS Marketplace that enhances Seller Private Offers by allowing software vendors to present tailored payment plans to their clients.

Independent Software Vendors (ISVs) can now negotiate pricing and quantities with customers, and subsequently establish a customized payment schedule that allows for up to 36 installments over a three-year period. Initially, the Flexible Payment Scheduler is available for Seller Private Offers related to SaaS products.

This innovative feature empowers ISVs to boost their sales velocity, volume, and transaction size by simplifying the purchasing process for customers. Customers can now acquire essential products at reasonable prices while paying in a manner that fits their budgeting cycles. Furthermore, they can commit to longer agreements and receive discounts while spreading their payments over time.

Begin Customizing Payment Plans for Your Clients

1. Ensure you are enrolled in the AWS Marketplace Enhanced Data Sharing Program, which enables you to extend offers through Seller Private Offers.
2. Verify that your customer operates on invoice terms (e.g., net-30, net-60 terms). If so, no special configurations are required to start.
3. To create your offer, click on Offers in AWS Marketplace, select the necessary product, and enter the customer’s Master Account number. Check the box labeled “Allow buyers to pay for this product in installments” to tailor your customer’s payment plan.
4. Upon checking this box, you’ll be prompted to confirm that your customer is on invoice terms. If any of your customer’s accounts do not meet this criterion, you will receive notifications detailing which accounts are not compliant.
5. After confirmation, you’ll navigate to the pricing page to detail contract duration, payment amounts, and billing dates. If needed, use the “+Add another payment” button to include additional payment lines or click “x” to remove one. Each invoice date must fall within the contract commitment period. The first payment will be the “up-front” initial payment typical for contract products, and with the Flexible Payment Scheduler, customers will only be invoiced on the scheduled dates and amounts.
6. Verify that the total matches the overall price you wish your customer to pay throughout the commitment. The sum of your payments and total will be automatically calculated and displayed for your convenience.
7. In the Offer Acceptance Date section, choose the date by which the customer must accept the offer. The offer must be accepted by this date to start the payment schedule.
8. Complete the remaining fields and upload required documentation as usual.
9. Click “Review Offer” to assess the payment schedule and total price.
10. If all details are correct, click “Extend Offer.” To make changes, select “Revise Offer.”

Once your customer accepts the offer, the payment schedule is finalized and charges will commence. If the first invoice date is set before acceptance, it will be processed immediately upon acceptance. To alter the payment schedule, a new offer must be created.

To aid in revenue recognition and compensation for your team, a new reporting section titled “Contracts with flexible payment schedule” will be included in your Monthly Revenue Report and the AWS Marketplace Management Portal. This section will detail total contract value, future invoice dates, and amounts for each offer.

For further insights about the Flexible Payment Scheduler in AWS Marketplace, check out the Seller Private Offers Seller Guide.

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