Merchant of Record Services: What's Included and How to Compare Providers

The full scope of Merchant of Record services

"Merchant of Record services" is one of those terms that means very different things depending on who's selling them. A SaaS MoR like Paddle includes payment processing and digital sales tax remittance, and that's the entire scope. A consumer brand MoR like eBrands bundles 40+ distinct operational services under the same label. Before you sign anything, you need to know exactly what you're getting.

The five core service categories

1. Legal seller and tax services

The MoR becomes the legal entity that sells your products to end customers. This includes:

• VAT registration in every active market
• Quarterly VAT filings and remittances
• US sales tax registration and filing across all economic nexus states
• Issuing tax-compliant invoices to customers in their local language
• Handling tax authority correspondence and audits
• OSS (One Stop Shop) registration for EU cross-border sales

2. Payment processing and treasury

The MoR operates the payment infrastructure that sits on the customer-facing side:

• Payment gateway operation across multiple processors
• Local payment method support (iDEAL, BLIK, Klarna, Bancontact, P24, etc.)
• Multi-currency pricing and FX management
• Refund and chargeback processing
• Fraud detection and prevention
• Monthly payout reconciliation to the brand partner

3. Importing and customs (IoR services)

For physical goods, the MoR typically also acts as Importer of Record:

• Customs documentation preparation and filing
• Duty payment and clearance
• HS code classification
• EORI number management for EU imports
• Cross-border shipping orchestration from factory or warehouse

4. Operational compliance

This is where consumer brand MoRs differ most sharply from SaaS MoRs:

• Extended Producer Responsibility (EPR) registration for packaging, electronics, batteries
• Product safety compliance (CE marking, REACH, US Prop 65)
• Country-specific product labeling requirements
• Amazon Responsible Person designation for EU listings
• GDPR-compliant customer data handling

5. Fulfillment and customer service

The closing layer that completes the MoR scope for physical goods:

• Warehousing across multiple regions
• Pick, pack, and ship operations
• Returns processing and refund issuance
• Customer service in local languages
• Dispute resolution and chargeback defense

What's typically NOT included

A few things almost no MoR includes by default — these usually remain with the brand partner or are handled as add-on services:

• Brand strategy and positioning — your job, not the MoR's
• Product development and R&D — your IP, your roadmap
• D2C paid acquisition (Meta, Google, TikTok ads) — typically retained by the brand even when the MoR runs marketplace ads
• PR and influencer marketing — usually outside scope
• Manufacturing — your supplier relationships stay yours

Some MoRs offer these as optional add-ons. Ask what's included before assuming.

How pricing typically works

Most consumer brand MoRs use a three-component structure: monthly retainer + performance commission + setup fees. The performance commission usually ranges from 6–10% of total order value, with operational costs (advertising spend, fulfillment fees, warehousing) passed through at cost.

SaaS MoRs charge differently — usually 5–8% of transaction value as a flat take rate, with no retainer. The pricing structures aren't directly comparable because the scope of services is fundamentally different.

Comparing providers: a 9-point checklist

When evaluating MoR providers for a consumer brand, run through this checklist:

1. Are you registered as MoR in every market I want to enter?
2. Do you handle Importer of Record duties, or do I need a separate IoR?
3. Which channels do you operate (D2C, Amazon, marketplaces, retail, TikTok Shop)?
4. Do you own or operate fulfillment in my key markets?
5. Are EPR, product safety, and packaging compliance included or extra?
6. What's the pricing structure — and are operational costs passed through at cost or marked up?
7. Do I keep ownership of my inventory, brand, and customer data?
8. What does the exit process look like if we stop working together?
9. What's the typical onboarding timeline from signed agreement to first live sales?

If a provider can't answer all nine clearly and in writing, keep looking.

Next step

Want to see how eBrands' MoR services map to your specific brand and markets? Book a call — we'll do the comparison live with you.