Fulfillment Fees

On top of the storage fees, through bookkeeping for Amazon, you can track the fees for every item fulfilled by Amazon. The rate depends on the size, weight, and type of item you are selling. Many ecommerce sellers cut costs by utilizing box spaces to pack products inside the smallest package possible. When you track how much each item costs, you can create plans to pack wisely.

Miscellaneous Fees

The fees for FBA do not end, and there are other fees you can still incur. When your package arrives at Amazon not following the packing guidelines, Amazon repackages them and charges you. Wrong and incomplete labels will add costs, too. Meanwhile, if you want to send your inventory to a single fulfillment center instead of several places, you must pay an additional inventory placement fee. Amazon can also handle gift wrapping for a certain fee. You can track all these when your bookkeeping for Amazon is in place.

International Shipping

As you scale your Amazon business and ship internationally, there are new costs you should consider. Taxes and customs duties are among these costs, and you also need to consider the currency rates of the places you send your products to. The right accounting software has multi-currency features to make conversion easier. Through the software, you can track international shipping expenses too.

Returns and Refunds

One advantage of using FBA is the handling of returns and refunds. As Amazon handles it, your bookkeeper keeps track of the costs incurred. As an Amazon business owner, it is your role to check the numbers and, at the same time, pinpoint the root cause of why you’re getting returns and refunds. Although they are normal, you still need to keep them to a minimum.

Benefit #2: Stay on Top of Your Assets and Income

Bookkeeping for Amazon helps track your expenses, and you can count on it, too, for monitoring your sales and computing your income. Bookkeeping is also a tool for you to check your total assets and know the worth of your company. Some of the details you can check because of bookkeeping are the following.

Amazon Sales

When your bookkeeping is in place, you can integrate the data on Seller Central into your bookkeeping and accounting tool. With this, you can monitor your sales and use this detail to run different financial reports. You can determine the cause when sales are low and set game plans to get more buyers. When sales are high, you can determine its cause and duplicate the practice.

Multi-Channel Fulfillment Sales

Amazon allows the fulfillment of orders from outside the platform through Multi-Channel Fulfillment (MCF). You can track your sales on Amazon and other sites with proper bookkeeping. If you sell in multiple ecommerce channels, bookkeeping will categorize the sales accordingly. With data, you can analyze whether MCF is suitable for your small business or if you need a different fulfillment method.

Net Profit

Net profit is the amount you get when you deduct all debts, expenses, and taxes from your gross profit. This value appears in many financial statements, which can be calculated correctly with proper bookkeeping. Investors and creditors check your net profit before investing or allowing you to borrow money. When a positive amount is reflected, it is called net profit, but a negative amount is called a net loss.

Inventory Management

Inventory management is essential for your business as it is a part of your assets, and you’ll see details about it on Seller Central. Integrating this data into your bookkeeping and accounting software is best, so you only have one place to look for both finances and your inventory. When you see your inventory, you can replenish fast-moving stocks immediately. You can also keep an eye and work on slow ones.

Benefit #3: Compliance With Sales and Income Tax

Amazon has Marketplace Tax Collection to comply with the Marketplace Facilitator law that compels third-party sellers to collect and remit sales taxes on behalf of sellers. Although Amazon already has the accurate records for you, which makes tax time easier, it pays to monitor the data. Meanwhile, when all the transactions in your Amazon small business are monitored throughout the year, tax time and paying taxes will be more uncomplicated.