How to Set Up and Accept AWS Marketplace Financed Payments

How to Set Up and Accept AWS Marketplace Financed Payments: A Complete Guide for SaaS Founders

Many enterprise buyers prefer to purchase third-party SaaS software through the AWS Marketplace. This allows them to consolidate their vendor bills, utilize unspent cloud commitments, or use programs like AWS Financing to break large software purchases into flexible payment schedules.

For SaaS providers looking to tap into this ecosystem, navigating the financial setup, operational steps, and tax regulations can be challenging—especially for international or India-domiciled sellers.

This step-by-step guide documents how to list your software, configure payment plans, and successfully route global funds to your bank account.

Step 1: List Your Product as a SaaS Contract

To accept financed funds or multi-month payment schedules, you cannot use standard pay-as-you-go usage billing. You must have a contractual billing architecture.

  1. Log in to the AWS Marketplace Management Portal.
  2. Navigate to the Products tab and select SaaS.
  3. Create a new product listing and select SaaS Contract.
    • Tip: If you do not want your pricing or product to be visible to the general public, you can keep the listing "Limited." This keeps your software hidden from the public catalog while enabling you to pitch custom deals privately.
  4. Integrate your software backend with the AWS Marketplace Entitlement Service API. This step ensures that when a buyer pays AWS, your SaaS platform automatically receives a token to provision their user accounts.

Step 2: Set Up Your Seller Profile & Verify Buyer Terms

Before drafting a deal, both your organization and your buyer must meet specific billing criteria.

For the Seller (You)

  • Complete your AWS Seller Profile in the management portal.
  • Input your corporate entity details, tax identification numbers, and localized bank account routing details to clear payouts.

For the Buyer (Your Customer)

  • Verify Invoicing Terms: Financed marketplace plans or multi-month installment schedules cannot be charged to a credit card. Your buyer must confirm their AWS account is set to Invoicing Terms (Net-30 or Net-60 billing).
  • Apply for Financing: If the buyer is utilizing the official AWS Financing program, they must complete their credit application inside their own AWS Billing Console prior to subscribing.

Step 3: Create a Private Offer with an Installment Plan

Once the custom contract value and terms are negotiated with your buyer, you will push a dedicated offer directly to their AWS Account.

[Step 1: Seller Profile Setup] ➔ [Step 2: Create SaaS Contract Product Listing] ➔ [Step 3: Issue Private Offer to Customer]
  1. In the AWS Marketplace Management Portal, go to the Offers tab and click Create Private Offer.
  2. Select your SaaS Contract product and input the buyer's AWS Master Account ID.
  3. Under the Pricing section, choose Contract pricing with installment plan.
  4. Check the box to "Enable fixed units and allow buyer to pay for this product in installments."
  5. Set the Payment Schedule: Define the exact release dates and exact dollar amounts for each invoice milestone.
  6. Review and Publish the offer. The buyer will receive a secure link in their console to review and click Subscribe.

Step 4: Understand the Transaction Fees

AWS automatically deducts a transaction fee (listing fee) from your gross payout before releasing the funds to your account. AWS scales this fee down based on the Total Contract Value (TCV):

Offer / Deal Type AWS Listing Fee
Deals under $1M TCV 3% flat fee
Deals between $1M and $10M TCV 2% fee
Deals over $10M TCV 1.5% fee
All Contract Renewals 1.5% flat fee
Professional Services Listings 2.5% flat fee

Step 5: Address Tax Regulations & Currency Routings

The flow of money and tax obligations depends heavily on where your SaaS company is incorporated and where your buyers are located.

Scenario A: Transacting via a Domestic Profile (e.g., India to India)

If an India-based seller sells to an India-based buyer, transactions happen locally in Indian Rupees (INR) via AWS India Private Limited.

  • Taxes On Sales: The buyer is billed an additional 18% GST on top of the contract. As the Seller of Record, you receive this tax and must remit it to the government.
  • Taxes on AWS Fees: AWS adds 18% GST onto their 3% listing fee. This is claimable by you as an Input Tax Credit (ITC).
  • Withholding Taxes: AWS India automatically deducts a 0.1% TDS (Section 194-O) and 0.5% GST-TCS before releasing your funds to your local bank account via domestic NEFT/RTGS.

Scenario B: Transacting Internationally (e.g., India to Global Buyers)

If an international buyer purchases your SaaS, the transaction is processed in US Dollars (USD) via AWS Inc. (US).

  • Export Tax Treatment: Exporting SaaS from India is considered a Zero-Rated Supply. You do not charge the buyer 18% GST, provided you file a Letter of Undertaking (LUT) on the GST portal before executing the contract.
  • Currency Conversion: AWS utilizes payment rails like Hyperwallet to disburse international funds. The USD is converted to INR before hitting your local account, incurring a standard foreign exchange markup (typically 1.5% to 2.5%).
  • Compliance: Your local bank may charge a minor handling fee, and you must request a Foreign Inward Remittance Certificate (FIRC) from your bank to legally prove the export for GST compliance.

Crucial Note on Cloud Credits

When selling to startups or companies utilizing AWS Activate Startup Credits, it is vital to know that standard cloud credits cannot be used to purchase third-party SaaS products. Cloud credits are strictly designated for first-party AWS infrastructure costs (like compute and storage). Your buyers must pay for your SaaS Private Offers out-of-pocket using cash, corporate credit, or approved AWS Financing structures.

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