e-Commerce giant Amazon has made its marketplace welcoming for newcomers. New sellers can sign up in minutes, and in a few more, have products live on the site. And, if you are looking for more customers, it’s hard to rival the exposure Amazon can offer. But, during this exciting venture, it’s important to keep a few things in mind that may affect your bottom line.
What fees does Amazon charge?
The cost to sell on Amazon depends on many factors, such as plan level, product category, and fulfillment style. Accurately keeping track of all the various fees will be vital to your success. If you fail to accurately record your true cost to sell on Amazon, you may end up eating into your profits, or even worse, operating at a loss.
Here are just some of the fees you can expect to pay when selling on Amazon:
Selling Plans
You can opt to pay per sale or stick to a flat monthly fee. The Individual plan costs $0.99 per unit sold, and the Professional plan costs $39.99 per month no matter how many units you sell.
Referral fees
For every item sold, sellers pay Amazon a percentage of the total price – including item price, shipping cost, and any gift-wrapping charges – or a minimum amount, whichever is greater. Referral fees are in addition to your selling plan fees. The amount depends on the product category. The fees start at 8% up to 45%! Although, most fall between 8% and 15%.
Fulfillment fees
The cost to ship your orders depends on whether you fulfill your own orders or use Fulfillment by Amazon (FBA). When you fulfill orders yourself, Amazon charges shipping rates based on the product category and shipping service selected by the customer, and then passes the amount on to you in the form of a shipping credit. FBA fulfillment fees includes picking and packing your orders, shipping and handling, customer service, and product returns.
Other costs
Some sellers may incur additional fees or pay for optional programs like advertising or premium account services. Additional selling fees may include inventory storage fees, high-volume listing fees, and refund administration fees.
Automation can help your business succeed on Amazon
Once you’ve launched your Amazon business, keeping your accounting software, such as QuickBooks, up-to-date with sales activity is a must. But, it doesn’t have to take up all of your time. Automation software can help you boost efficiency, saving you time, money, and labor. These tools are all about simplifying repetitive tasks and increasing accuracy, without any manual effort. This, in turn, helps you avoid costly mistakes, such as duplicate payments or missed orders.
How does automation help reduce my Amazon Tax Liability?
Many ecommerce businesses pay more than their fair share of taxes. Oftentimes, they overpay due to inaccurate records. Automation can help you reduce your tax liability by ensuring you are routinely and accurately importing sales data and tracking fees. As a result, you’ll be able to capture your actual profit margins as well as maximize your deductions. With high quality records you can count on, your tax filing will be precise and on-time, leading to better business decisions down the road.
Benefits of Automation
- Easily track all of your sales history between Amazon and accounting, improving shipping times and customer service, as a result.
- Accurately track inventory and Cost of Goods Sold (COGS)
- Record sales data automatically, saving you time and money, while eliminating costly human errors.
- Increase data accuracy and reduce busywork, therefore enhancing operations.
- Organize your financial details between Amazon and accounting, creating a solid financial record that drives growth.
Watch the video below for a detailed look at how you can reduce Amazon Tax Liability using an automation tool like Connex.
In this demo video, produced by Sync with Connex CEO & Founder Joseph Anderson, he discusses best practices to reduce your tax liability. Our dynamic, user-friendly solution allows you to quickly and accurately record your data for effortless bookkeeping.
Is Connex the Right Tool To Sync Your eCommerce store with QuickBooks?
Most of our customers sell on multiple eCommerce channels, such as WooCommerce, Shopify, Magento, and ShipStation, just to name a few.
They want to grow their business, and value up-to-date accurate accounting so they can better serve their customers. Above all, they know a key component to growth is to track business expenses for better forecasting. As a result, with automated sales syncing to QuickBooks, they can feel confident they have the information they need to make important business decisions.
Why Our Customers Choose Sync with Connex
- Developed specifically eCommerce business owners.
- You can scale your business by automatically syncing sales & inventory from multiple eCommerce platforms to QuickBooks Desktop or Online.
- You don’t have to spend your resources manually entering sales, inventory, and customers into your website and QuickBooks accounts.
Recommended by Intuit itself, Connex for QuickBooks will give you peace of mind that your inventory will be updated. Moreover, you will be free of the frustration of oversells and missed items.
- When your inventory is up-to-date, you can achieve higher customer satisfaction, leading to more positive reviews, and increased sales.
- For phone orders, we can sync sales from QuickBooks to your shipping solution.
- If you sell on multiple channels, you can simplify by using our solution instead of multiple tools.
- Connex integrates QuickBooks with all major e-commerce platforms, such as Woocommerce, Shopify, Magento, Amazon, and e-commerce shipping solutions such as Shipworks, Ordoro, and Shipping Easy.
–Click here for a full list of our ecommerce, shipping, and payment integrations
How can you decide whether Connex is right for your business?
The easiest way to tell whether Connex is right for your business is to try it out.
During this introductory call, you will discover how Connex can help you to:
- Eliminate manual data entry into QuickBooks Online or QuickBooks Desktop
- Automatically update your inventory and prevent oversells and refunds
- Manage sales from multiple channels in one app
- Connect your shipping solutions to QuickBooks
- Have accurate financial information in your QuickBooks, every day
Are you unsure whether Connex is right for your business?