How are my Microsoft commercial marketplace fees determined?
Cloud marketplaces charge a fee on all marketplace transactions. The amount of the fee charged per transaction can be dependent on the seller’s relationship with Microsoft commercial marketplace. For more information about your marketplace fee, contact your cloud BD and/or PDM.
How are taxes calculated for Microsoft commercial marketplace offers?
Tackle can provide a high level understanding, but specific questions should be addressed to your cloud BD and/or PDM.
Each of Microsoft's and your responsibilities for sales, use, goods and services, value added or similar taxes, if any, on end customer sales (End Customer Taxation) depends on the country/region in which you elect to make products/offers available for sale to end customers through the Microsoft Marketplaces.
What types of End User License Agreements (EULAs) are available on Microsoft commercial marketplace?
When creating your listing or a private offer in Microsoft commercial marketplace, you have the option to use your own custom EULA or leverage one of the cloud provider’s standard contracts. Using the standard contracts provided by cloud providers can reduce the time it takes your buyer's legal team to review the EULA.
Specific contracts available:
Custom EULA
Microsoft Standard Contract
Microsoft Standard Contract + Custom Amendment
When creating private offers, you have the option to attach a custom EULA for that specific transaction. When creating a private plan, it uses the EULA on your public listing.
For more information, see Partner Center docs🔗.
Why can't my buyer on Microsoft commercial marketplace accept my offer?
Before you begin
Buyers must have the following prerequisites to accept a private offer on Microsoft commercial marketplace:
The Enterprise Agreement Admin or Billing Account Owner role is required to accept the private offer terms.
The Owner or Contributor role in the organization's main Azure Account on the subscription (not marketplace account) is required to subscribe to the private offer.
The buyer must be logged in to the Azure account specified on the private offer.
The Microsoft private offer must be built on a public plan available in the same market associated with the buyer account. During private offer creation, confirm which market the buyer billing account is located in and ensure this market is selected.
Tip
Avoid common buyer errors by prechecking their account for a private offer eligibility using the tool provided by Microsoft.
Accept the offer
The buyer must navigate to the private offer by clicking the unique private offer link from the Tackle notification or sales representative.
Tip: If your offer URL is inaccessible, buyers can also go to their Azure Portal🔗, click Marketplace, then click Private Offer Management and select the offer there.
The buyer can then view the offer to ensure they are viewing the correct terms, check the Terms and Conditions box, and click Accept.
When the acceptance process completes, click Purchase.
The buyer can then select the agreed upon billing term and other options in the panel that open up.
Important: Unless agreed otherwise, always select "Off" for Recurring Billing. This prevents unintentional auto-renewal at the end of the subscription term.
Click Review and Subscribe, and review the configured private offer.
Click Subscribe.
When the subscription process completes, click Configure Account Now.
Complete the registration form so that the ISV can provision the software.
For more in depth information on the buyer experience on Microsoft commercial marketplace, see the video Accepting and purchasing a Private Offer: The customer experience🔗.
Common acceptance issues
Buyer unable to complete the purchase
This issue can occur when the plan on the private offer is retired or it no longer exists. When this happens, the Purchase option is grayed out and the buyer is unable to complete their purchase.
If the Purchase button is grayed out, verify if the plan that the private offer was created with is still active or published.
Buyer is unable to access the registration page
When the buyer is unable to access the registration page, this will leave their subscription in a “pending approval” state and prevent them from being billed. After an hour the vendor will receive an Incomplete Order email with a link to register and complete the purchase. If the vendor associated the offer with Tackle Offers it will use that information to register the order after the hour.
Typical Causes:
Incorrect Product ID in Tackle Platform
It is possible that the product id inside the Tackle Platform and the product id on the listing in the marketplace are not aligned. If they are not, the buyer will see a message saying that the “product id does not exist” instead of the registration page.
To check if this is the issue, go to the Tackle Platform and find the listing. If you see “-preview” or other unexpected values in the product id, please contact Tackle Support🔗 for assistance resolving this issue.
Azure Application is Expired or Invalid
If the Azure application is expired or if the credentials in the Tackle Platform are invalid, then the buyer will not be able to access the registration page and they will see the following error message instead of a registration page:
{"code":"session_failure","description":"Failed to initialize Azure session"}
To resolve the error, we will need to make sure the credentials in the Tackle Platform align with the application in your tenant. See Reconnect to cloud marketplaces for instructions on how to resolve this issue.
Cloud Solution Provider Account
If the buyers' subscription (account) is managed by a CSP (Cloud Solution Provider) then they may be unable to purchase from the SaaS listing. They may not know that their account is set up this way but when attempting to subscribe to the offer they will see an error like the one below:
There are three paths to resolve this issue:
Have the buyer create a new account separate from the CSP account and use that to purchase. If they do so, then you will have to update the offer to whitelist the new account.
Have the buyer ask the CSP for owner permissions to enable them to accept the offer (this is known as a “Customer-led CSP offer” by the marketplace).
The final option is to take the deal direct outside of the marketplace.
Why can't I see an accepted Microsoft private offer in Tackle?
For Microsoft private offers, your customer may also need to activate their subscription after accepting your offer. Tackle will not update the Tackle Offer status or send notifications until the subscription is activated and billing has been initiated.
If your customer did activate their subscription and you still don't see notifications or an updated status for that offer, contact Tackle Support for help.
Does my buyer's Microsoft commercial marketplace purchase count towards their commit burndown?
Only "MACC Enrolled" will burn down the buyer's commitment.
When a buyer transacts on your SaaS listing it may count towards their cloud consumption commitment. The invoice date is used to determine what calendar year a transaction will count towards.
Only listings that display the “MACC Enrolled” status will be able to burn down the buyer's commitment.
See if your listing is MACC enrolled here🔗.
In Microsoft commercial marketplace, will my buyer’s cloud subscription auto-renew?
Auto-renew defaults to “true” on public orders (this can not be changed). All subscriptions are eligible for auto-renewal. Buyers can update the auto-renew settings on their subscription at any time.
When will I get paid for my Microsoft commercial marketplace buyer’s subscription?
Disbursement schedules can vary widely based on a number of factors. Microsoft manages all customer invoicing for marketplace purchases. Your disbursements are made monthly directly to the bank account associated with the seller account, less Azure Marketplace service fees and taxes (where applicable).
View the payout schedule examples🔗 from Microsoft. For more information, see this article from Microsoft: How to reconcile Microsoft disbursements🔗.
Your payments can also change depending on the payment terms of your buyer. Microsoft commercial marketplace, like most cloud marketplaces, typically does not disclose this information about buyers to sellers. If you need this information, you should capture from the buyer as part of your sales process.
Can my buyer cancel an order through Microsoft commercial marketplace?
Buyers may self-request a cancellation and refund of a Microsoft commercial marketplace purchase within the buyer's remorse window. This is completed in the SaaS Resource Management area of Azure Portal. Canceling the order within the 72 hour buyer's remorse window initiates a full refund for the subscription charges. This will not refund any additional usage charges.
Important
Weekends and holidays are included in the 72 hours. Therefore, a subscription activated at 1pm on Friday will need to be cancelled by 1pm on Monday or it will fall outside the remorse window.
If a buyer needs to cancel an order after the 72 hour buyer’s remorse window, they must submit a support request to Microsoft Support.
You may cancel any active (accepted) order by submitting a request to Microsoft support. If you do not require a refund for the order, it may be preferable to just let the order cancel naturally at the end of the marketplace subscription term. If you do need to refund the order, you will need to ask your customer to submit the cancellation and refund request.
Tip
Microsoft commercial marketplace processes strongly favor a buyer-led request process. Tackle recommends engaging with the buyer from the earliest stages of the refund process to avoid added friction.
Refund and cancel an order (within 72 hours)
A buyer may self-request a cancellation and refund of an Azure Marketplace purchase within the Buyer's Remorse Window. This is completed in the SaaS Resource Management area of Azure Portal. Canceling the order within the 72 hour Buyer's Remorse Window initiates a full refund for the subscription charges. This will not refund any additional usage charges.
The buyer needs to complete the following to cancel an order in Azure (within 72 hours):
Go to Azure SaaS Resource Management🔗.
Select the subscription to cancel.
Click Cancel Subscription.
Refund and cancel an order (after 72 hours)
The buyer must submit a support request to Microsoft Support in order to initiate the refund after the 72 hour buyer's remorse window. This is the most efficient way to work with Microsoft support to process refunds. Going outside this model can lead to significant delays in the refund process.
The buyer needs to complete the following to cancel an order in Azure (after 72 hours):
Log in to Azure using the account that purchased the offer.
Click the hamburger menu in the top left of the page and select the Help & Support🔗 section.
Select Billing as the Issue Type.
Select the subscription used to purchase the offer.
Complete the Summary section.
Select Refund Request as the Problem Type.
Click Next twice to get to the Additional Details section.
Provide the following information in a request to expedite the refund process:
Refund Amount
Reason for the Refund
Note: If your buyer is unsure what to select, instruct them to choose Other and include their reason for canceling in the textbox provided.
Request Type: new refund request or check the status of an existing refund request
Plan ID for the purchased plan
Explanation of why the charges are incorrect
Check Yes under Advanced Diagnostic Information.
Review contact information to make sure it is up to date.
Create the request.
How does the sales order process work in Microsoft Commercial Marketplace?
This reference article provides an overview of transacting on the Microsoft commercial marketplace.
Public order overview
Microsoft public orders are available at the list price under the public EULA set on your listing. A buyer can subscribe directly from the listing and complete their registration with no sales interaction or negotiation.
The following describes the public order process steps and considerations:
The buyer navigates to your Marketplace listing and clicks Subscribe.
The buyer accepts the public terms.
If the buyer completes registration:
You will receive a New Azure Order email notification.
the buyer will receive a welcome email with the email/URL you put in the Product Support section of your Tackle Listing Template.
The order is booked/revenue recognized.
If the buyer does not complete registration:
you will receive an Incomplete Azure Order email notification with a link to register the order.
Billing will not initiate and the subscription will not start until the order is registered.
The order is booked/revenue recognized.
You provision the product to the buyer.
Depending on the buyer's payment terms with Microsoft, they will either have it added to their next monthly bill or be charged immediately.
Once they pay Microsoft for the order, Microsoft will disburse those funds to you.
You reconcile the disbursement to the order.
Direct and amendment private offers overview
Private Offers enable you to create and extend a unique offer based on specialized needs such as negotiated pricing and custom contract terms.
Note
Since Microsoft allows you to have multiple active subscriptions with your buyer, the process for creating direct and amendment private offers is the same. Whenever you need to renew or upgrade the subscription, just extend a new private offer.
The following describes the direct private offer process steps and considerations:
Come to an agreement with your buyer on what they will be purchasing and gather the billing account ID & tenant ID that they will be using to purchase.
Send purchase instructions to the buyer using Tackle Offers.
The buyer accepts the private offer.
If the buyer completes registration:
You will receive a New Azure Order email notification with Tackle Offers metadata.
The buyer will receive a welcome email with the email/URL you put in the Product Support section of your Tackle Listing Template.
The order is booked/revenue recognized.
If the buyer does not complete registration:
If you used Tackle Offers for this order, Tackle will wait an hour and then use the information from Tackle Offers to register the order.
you will receive a New Azure Order email notification with Tackle Offers metadata.
The buyer will receive a welcome email with the email/URL you put in the Product Support section of your Tackle Listing Template.
The order is booked/revenue recognized.
You provision the product to the buyer.
Depending on the buyer's payment terms with Microsoft, they will either have it added to their next monthly bill or be charged immediately.
Once they pay Microsoft for the order, Microsoft will disburse those funds to you.
You reconcile the disbursement to the order.
For more information on how to create offers refer to our Tackle Academy course, Creating a Microsoft Private Offer in the Tackle Platform🔗.
Direct private plan overview
Private plans are used whenever you need to sell a product that isn’t listed on the public listing SKUs. It allows you to create a custom SKU for the transaction as well as custom additional usage SKUs.
Note
Private plans use the EULA from the public listing.
The following describes the direct private plan process steps and considerations:
Come to an agreement with your buyer on what they will be purchasing and gather the tenant ID that they will be using to purchase.
Create the plan in Partner Center and Publish the listing.
Send purchase instructions to the buyer using Tackle Offers.
The buyer accepts the terms of the private plan.
If the buyer completes registration:
You will receive a New Azure Order email notification with Tackle Offers metadata.
The buyer will receive a welcome email with the email/URL you put in the Product Support section of your Tackle Listing Template.
The order is booked/revenue recognized.
If the buyer does not complete registration:
If you used Tackle Offers for this order, Tackle will wait an hour and then use the information from Tackle Offers to register the order.
You will receive a New Azure Order email notification with Tackle Offers metadata.
The buyer will receive a welcome email with the email/URL you put in the Product Support section of your Tackle Listing Template.
The order is booked/revenue recognized.
You provision the product to the buyer.
Depending on the buyer's payment terms with Microsoft, they will either have it added to their next monthly bill or be charged immediately.
Once they pay Microsoft for the order, Microsoft will disburse those funds to you.
You reconcile the disbursement to the order.
Cloud Solution Provider (CSP) partner private offer overview
CSP private offers are used when you need to create a deal with a Cloud Solution Provider as a partner on the deal.
The following describes the CSP Private Offer process steps and considerations:
Important
"Customer-led" CSP offers where the buyer has owner permission to accept the offer without directly involving the CSP follow the standard private offer flow.
Come to an agreement with your buyer/partner on what they will be purchasing and gather the tenant ID that they will be using to purchase.
Create the Private Offer in Partner Center.
Inform the CSP that the offer is live.
The CSP navigates to the customer module, selects your product, and clicks Buy.
You will receive an Incomplete Azure Order email notification with a link to complete the order.
You register the order to complete the transaction.
You will receive a New Azure Order email.
The order is booked/revenue recognized.
You provision the product to the buyer.
Depending on the CSP's payment terms with Microsoft, they will either have it added to their next monthly bill or be charged immediately.
The CSP charges the end customer outside of marketplace.
Once they pay Microsoft for the order, Microsoft will disburse those funds to you.
You reconcile the disbursement to the order.
For more information on CSP Private Offers check out the Partner Center docs🔗.
Multi-party private offer (MPPO) overview
Multi-party private offers are offers that allow you create offers that include your reseller partners.
The following describes the MPPO private offer process steps and considerations:
Come to an agreement with your buyer/partner on what they will be purchasing and gather the billing account ID & tenant ID that they will be using to purchase. You will also need the Seller ID of the Partner.
The Partner adds their percent markup to the pricing in Partner Center and sends the offer to the end buyer.
The buyer accepts the terms of the private offer.
If the buyer completes registration:
You will receive a New Azure Order email notification with Tackle Offers metadata.
The buyer will receive a welcome email with the email/URL you put in the Product Support section of your Tackle Listing Template.
The order is booked/revenue recognized.
If the buyer does not complete registration:
If you used Tackle Offers for this order, Tackle will wait an hour and then use the information from Tackle Offers to register the order.
you will receive a New Azure Order email notification with Tackle Offers metadata.
The buyer will receive a welcome email with the email/URL you put in the Product Support section of your Tackle Listing Template.
The order is booked/revenue recognized.
You provision the product to the buyer.
Depending on the buyer's payment terms with Microsoft, they will either have it added to their next monthly bill or be charged immediately.
Once they pay Microsoft for the order, Microsoft will disburse those funds to you & partner.
You reconcile the disbursement to the order.
For more information on creating MPPO private offers in Tackle check out Tackle Academy🔗.