Are You Losing Money On Your Amazon Sales?
Warren Buffet, the legendary investor, has two rules when it comes to making money: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”
The big question is: “HOW can you make sure that you never lose money when you sell on Amazon?” Specifically, how can you stop losing on refunds, lost or spoiled inventory, shipping, labor, materials, merchant fees, and advertising costs, and stay in business?
If your goal is to stop losing money, and make a healthy profit, the latest marketing and sales gimmicks are not enough. Profits on Amazon can be so low, that you have to know numbers, decrease your costs as much as possible, and charge as much as the market allows.
About 75% of accounting professionals still enter e-commerce data manually into QuickBooks, which makes it impossible to generate up-to-date profit and loss statements. Some have tried QuickBooks automations, but they were difficult to use, and still required manual data entry.
In this guide we will show you what to look for in an Amazon-QuickBooks integration, and help you decide whether Connex’s Amazon-QuickBooks integration could be right for your business.
How to Use a QuickBooks Integration to Stop Losing Money on Your Amazon Sales
#1: Save your business 500-1000 hours in labor each year
Most of our customers spend about 10-20 each week manually entering sales data and updating inventory into QuickBooks. This does not include additional time needed to match sales or correct human errors. Most medium to large Amazon sellers need to pay someone at least 20 hours each week to hand-enter data. When you replace manual data entry with automation, you can either reduce your head-count, or reassign your staff member to a profit-generating position such as sales or marketing.
#2: Maximize you tax-write-offs
While accounting professionals are familiar with the costs that they can write off, they frequently don’t have accurate numbers for your Amazon sales. With manual data entry, it’s nearly impossible to accurately reconcile merchant fees, refunds, sales tax, lost inventory, and shipping fees. An automated QuickBooks integration with advanced functionalities can help you capture all the costs to maximize tax write-offs.
#3: Generate accurate and up-to-date profit & loss statements
Would you like to stop selling items that lead to losses and sell more items that are profitable? To get an accurate report of your profits (or losses) for each item, you need to have accurate numbers in QuickBooks. A reliable integration will match products to give you an accurate cost of goods sold (COGS) and also bring over merchant fees from Amazon. If you have flash sales, choose an integration that syncs often (eg. every 15-30 minutes) and can bring over large order volumes in chunks, so you can quickly generate an accurate P&L statement.
#4: Free yourself from oversells and overstock
Overstock ties up your cash and oversells lead to refunds and disappointed customers. The culprit behind both of them is lack of updating stock changes frequently enough. With an Amazon-QuickBooks integration, you can automatically update stock changes. Some integrations also allow you to update stock levels on other selling channels such as Shopify or WooCommerce.
#5: Choose the most cost-effective shipping and fulfillment option
When you sell on Amazon, you have the choice between fulfillment by merchant or fulfillment by Amazon (also known as Amazon Prime). If you fulfill it yourself, you have to decide which shipping option is the most cost-effective. An Amazon-QuickBooks integration helps you generate accurate reports so you can choose the most cost-effective fulfillment and shipping option. Some integrations also enable you to mark up shipping as needed.
In summary, an automated QuickBooks integration helps you to make financially informed decisions to minimize losses, generate more profits, and save you and your team 500-1000 hours each year.
How the Soap & Paper Factory Used an Automated Amazon-QuickBooks Integration to Grow
Soap & Paper Factory grew from a small booth at a Farmer’s Market, to a multichannel business selling both retail and wholesale to large chain companies such as TJ Maxx.
The key to growth for Soap and Paper was automation. They initially used Magento and ShipStation, but the bottleneck to growth was manual data entry and copying and pasting orders. After they implemented Connex’s automation, ShipStation was able to talk to QuickBooks, and freed up hundreds of hours for their staff.
After partnering with Connex, all of the pieces of the business were finally connected.
Having a reliable Amazon Quickbooks integration that automatically synced their sales was the key to Soap and Paper Factory’s success.
“The biggest thing is we can get information to our fufilment center, which is incredible. Then, the information can also go back! Our sales person would have to wait for our shipper to send the tracking number back, in order to update QuickBooks. We depended on cut and paste. We send all orders to ShipStation now, and that information all feeds back to QuickBooks.”
“Magento talks to ShipStation; Connex pulls all the information from ShipStation. Now we can get retail information all in once place. We were printing orders and manually entering them for our wholesales customers before we had Connex. Because of Connex, we can now move to Amazon.” Shannon, Soap & Paper Factory Cofounder
Why Our Customers Choose Sync with Connex to Automatically Integrate Amazon with QuickBooks
Recommended by Intuit itself, Connex for QuickBooks uses the most up-to-date automation technology to integrate Amazon with QuickBooks Online and Desktop editions (Pro, Premier, Enterprise).
With Connex, you have peace of mind that your orders sync automatically to QuickBooks, eliminating manual data entry. We are compatible with Amazon North America, Europe, and the Far East.
Connex integrates QuickBooks with all major e-commerce platforms, such as Amazon, Woocommerce, Shopify, Magento, and the most popular shipping solution, ShipStation.
Wondering if Connex is a good fit for your business? Please contact our sales team using the button below.