Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 146

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 146
---
 product sales and related costs or the net amount earned as commissions. When
the Company is a principal, that the Company obtains control of the specified goods or services before they are transferred to the customers,
the revenues should be recognized in the gross amount of consideration to which it expects to be entitled in exchange for the specified
goods or services transferred. When the Company is an agent and its obligation is to facilitate third parties in fulfilling their performance
obligation for specified goods or services, revenues should be recognized in the net amount for the amount of commission which the Company
earns in exchange for arranging for the specified goods or services to be provided by other parties. Revenue is recorded net of value-added
taxes.

The Company recognizes revenue net of discounts
and return allowances when the products are delivered and title passes to customers. Significant judgement is required to estimate return
allowances. For online direct sales business with return conditions, the Company reasonably estimate the possibility of return based on
the historical experience, changes in judgments on these assumptions and estimates could materially impact the amount of net revenues
recognized. The Company generally grants customers 7 days of free return upon receiving goods according to PRC law regarding online purchased
products. As of December 31, 2024 and 2023, no return allowances were recorded.

The Company primarily sells cosmetic products,
nutritional supplements and household products through online direct sales. The Company recognizes product revenues from the online direct
sales on a gross basis as the Company is a principal because it controls the promised good or service before transferring it to a customer.
The Company recognizes revenue when the title passes to customers after the customer signs for receipt. This control is determined by
the following indicators 1) The Company is the primary obligor in the sales transaction and responsible for fulfilling the promise to
provide the product and service. 2) The Company bears the inventory risk. The Company will first indemnify customers for product damages
and then request reimbursements from suppliers if the suppliers are determined to be responsible for the damages. 3) The Company has discretion
in establishing the prices and control over the entire transaction.

Other than revenue from online direct sales, the
Company also earns service fees charged to third-party sellers for participating in the Company’s online marketplace, where the
Company generally is acting as an agent and its performance obligation is to arrange for the provision of the specified goods or services
by those third-party sellers. During the years ended December 31, 2024, 2023 and 202