Why: the goal or problem

Selling across markets adds sales administration your team may not operate. You need to know which duties a contractual seller can take on.

How: work toward a solution

For a fictional reading-tool license, the customer pays the MoR, which settles agreed proceeds to the business. The MoR owns the illustrated receipt, refund and transaction-tax workflows. The business still delivers the product and agreed product support. Amounts, exclusions and country-specific tax rules are outside this diagram.

A contracted seller handles covered transactions.

Illustrative example

Merchant of record model

Reading-tool license · assumed contract

Sale contract

Customer ↔ Contracted MoR

Customer → MoR → agreed settlement → Business

Responsibility owner in this example
TaskOwner
Receipt identityContracted MoR
Refund / transaction-tax workflowContracted MoR
Product and product supportProduct business

Covered duties follow the agreement. No country-specific tax rules or universal coverage claim.

What: the concept

Merchant of record model — An outsourced merchant of record acts as seller for covered transactions. Its responsibilities follow the agreement; product creation and every business obligation do not automatically transfer.

Combine with subscriptions while checking retained duties.

Source