Inventory glossary

What is Commercial invoice?

A commercial invoice is a document from the supplier that lists what was shipped, the price per item, the total value, and the terms of sale.

If you order from an overseas supplier, the commercial invoice is what customs uses to work out duties and taxes on your shipment. Without it, or with a wrong one, your goods can sit stuck at the border while your store runs out of stock.

Check the commercial invoice against your purchase order before you pay or let goods clear customs. Make sure quantities, prices, and item descriptions match what you ordered, so you are not paying duty on the wrong values or receiving the wrong goods.

Example

A candle store owner orders 500 units from a supplier in Vietnam at $2 per unit. The supplier sends a commercial invoice showing 500 units, $2 each, total value $1,000, shipped FOB Ho Chi Minh City. Customs uses this $1,000 value to calculate import duty when the shipment arrives.

Common mistakes

  • Confusing a commercial invoice with a packing slip, which lists contents but not pricing or value.
  • Not matching the invoice total against the original purchase order, which can hide pricing errors or short shipments.
  • Using a low or inaccurate declared value to reduce duty, which creates legal and customs risk.

Commercial invoice and SteadyShelf

SteadyShelf drafts and sends the purchase order to your supplier, but the commercial invoice and customs paperwork for international shipments are handled outside the app.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

Related terms

Purchase order · Incoterms · Customs clearance · Packing slip · FOB shipping

Full inventory glossary

FAQ

Is a commercial invoice the same as a purchase order?

No. A purchase order is what you send to request goods. A commercial invoice is what the supplier sends back with the shipment, stating what was actually shipped and its value for customs and payment purposes.

Do I need a commercial invoice for domestic orders?

Usually not. Commercial invoices are mainly needed for international shipments that cross a customs border. Domestic suppliers typically just send a regular invoice or packing slip.

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