Etsy sellers, arguably, have more to account for in their books than other ecommerce sellers.
Keeping track of all the costs involved in creating a product, and then selling it, is essential to ensuring you make a profit in the end. If you want to grow, that is. In this Etsy accounting guide, part of our Etsy accounting hub, we’ll be covering all the key things that sellers like you need to know, and do, to successfully manage your books.
Selling on Shopify is all about freedom of expression for your brand, and that’s pretty exciting for an ambitious entrepreneur.
With Shopify’s unique customization offering, it now powers millions of ecommerce stores and some of the biggest brands in the worldincluding Kylie Cosmetics, Heinz, Lindt, RedBull, Tesla, Sephora, and more. But the road to growth and success isn’t without bumps, and planning as early as possible for these is the best way to minimize damage.
Ecommerce sellers used to have a pretty easy time when it came to sales tax, but those days are gone.
In June 2018, a landmark case turned the tide on sales tax collection for good. The Wayfair vs. South Dakotaruling redefined the criteria for business owners eligible to pay sales tax.
Prior to this ruling, business owners needed physical presence in a state to be considered eligible to remit sales tax.
Selling on Amazon is a pretty exciting prospect for any entrepreneur. With billions of visitorsevery month, Amazon.com is an advanced marketplace armed with all the tools new sellers need to make a serious profit. But the road to making money on Amazon isn’t always smooth. It can be made easier with smart planning upfront - especially when it comes to how to do Amazon accounting. This guide is an introduction to setting up your accounting for Amazon FBA.
“Ecommerce businesses are really data businesses."
- Cyndi Thomason, CEO of bookskeep.
Most ecommerce sellers don’t go into business for accounting.
But to run a profitable, healthy business, it’s crucial to understand your numbers.
And for ecommerce, there are a few key definitions and systems that you need to know in order to give yourself the best chance at success.
Regardless of whether you are a seller or an ecommerce accountant needing an overview, this is the place to start.
If you’re an accountant trying to establish your niche, serving Amazon sellers is a great way to get your name out there. In 2021, there are 1.9 million active Amazon sellers, with the site selling around 4000 items per minute!
That’s a sizeable pool of potential clients for an accountant. And currently, around 34% of themare looking for new opportunities, so that’s a good indication that they’ll be able to outsource their accounting and bookkeeping to a professional such as yourself.
Business accounting is one thing.
Ecommerce business accounting? That’s another thing entirely. And for sellers with little to no accounting experience in general, it’s crucial to get to grips with what’s required as early as possible.
The basic principles of accountingremain the same, but there are some fundamental differences.
For each that we cover below, there are solutions out there to help you.
With the monumental growth of ecommerce has come a significant expansion in the tools available to facilitate these types of businesses, so you are far from alone!
Helping ecommerce clients today reach their full potential involves a lot of the right technology.
Smart automation combined with your skills and expertise is the name of the game now, and in this post, we’ll be exploring how our accounting partners have used A2X to streamline their clients’ ecommerce accounting.
Alongside their talent and hard work, some of our accounting partners have credited A2X with their success, scalability, and even their business models.
Just about anyone can start selling online, but not everyone will be successful.
Those success stories are founded on talent, creativity, and passion - but they also depend on excellent management of the money that drives them.
Cash flow is like blood flow. It powers every organ of your business and if it’s not nurtured, maintained, and regularly vetted, it can cause serious, compounding issues.
In the first part of our Shopify accounting hub series, we looked at the 8 setup steps to help you set the scene for your new venture.
This article is based on a guest post from our good friends at MuseMinded.
For ecommerce sellers, sales tax compliance can be overwhelming.
Even if you are a US-based seller just trading domestically, the differences in requirements across the country are dizzying at times.
Tax laws surrounding ecommerce sellers are still relatively new - like the industry itself. The wrinkles have yet to be ironed out, and so sellers today (and their accountants) are amongst the first to find their feet in a complex, evolving system.
This article is based on a guest post from our good friends at MuseMinded.
The blog is the final in our ecommerce sales tax series, as part of the A2X ecommerce accounting hub.
If you’ve been with us from the beginning, you’ll have covered an overview of what sales tax is, why and how it affects ecommerce sellers today, and strategies to deal with sales tax compliance. Next up, we discuss your options for filing.
Automating the accounting side of your ecommerce business is a smart step.
Not only are you ensuring accuracy and consistency over the lifeblood of your business, but you are gifting yourself the time to invest your resources elsewhere.
When you integrate Shopify with QuickBooks, your store transactions are uploaded and stored automatically. When you add A2X into the mix, the details within these transactions are captured and displayed for you, ensuring that you have all the information you need, as an ecommerce seller, about your financial activity.
eBay sellers generally need to pay most attention to the following taxes depending on their location:
Sales tax (for the US) VAT or GST (for countries outside the US like the UK & Europe) For more detailed information on these, select the guides linked above. Here, we’ll cover some of the frequently asked questions about eBay taxes across the board.
It might be worth bookmarking this page for quick and easy reference later on!
Understanding what Amazon seller fees you can expect to pay on the platform is crucial to your bottom line.
If you’re paying more in fees than you’re making in profit, you have a problem.
You also need to be able to interpret your settlement statementsto figure out exactly what charges you have paid and why, so that you can plan to minimize them as much as possible.
There are numerous Amazon marketplace fees; some apply to all sellers and some unique to those using Fulfilment by Amazon (FBA).
Accountants might be comfortable with P&Ls and balance sheets, but not all ecommerce sellers are.
When it comes to a quick reference point on the health of their business, sellers often look at their bank accounts.
With bank transactions being almost instant nowadays, nowhere else offers them the same real-time viewpoint as those balances. Simple, quick, and easy.
But as we know, simple, quick and easy can often lead to poor quality.
The internet has changed the way we buy and sell.
Online marketplaces such as Amazon and eBay now dominate the retail landscape, and more and more retailers are moving online.
In the US, tax law is changing in response. Rather than missing out on online sales tax, states are adapting their laws and introducing new legislationin order to force sellers or online marketplaces to collect and remit sales tax.
Automation is all about working smarter.
It allows you to hand the repetitive tasks of your business, that demand accuracy and consistency, to software designed to handle this. As a result, you have more time to up-skill, learn and grow your business.
If you are here, you have probably figured that much out already. Using Xero for Shopify brings you as a seller a host of great benefits and functionality options, so here, we will explore what these are and how to get started.
This guide is part of our Ecommerce Accounting Hub, fundamentals series. If you’ve been with us since the beginning, you’ll know how complex managing ecommerce accounts can be.
And then there are the added layers of sales tax, inventory, and merging multiple channels to consider, all of which directly impact your books.
To make sellers’ lives easier, we have a directory of our trusted accounting partnersbased all over the world, so that you can find the expert, professional help you need.
FBA sellers stand to make good money if they know what they’re doing.
Around 20%typically make between $1000-$5000/month, with around 10% making up to $50,000/month. The sky’s the limit, but the foundation must be robust first.
And there’s plenty that can go wrong easily, especially in the early days.
This blog is inspired by a previous guest post by our friends at Bean Ninjas, and this videoby Catching Cloudsco-founder Patti Scharf.
Accurate Amazon accounting is a must.
The best thing you can do for your ecommerce business is to build an accounting framework that scales and nurtures your success. What does this look like?
Great accounting software and the support of a specialist Amazon accountant.
Whether your accountant just helps you get set up or supports you full time, their help and advice can be invaluable to the growth of your Amazon store.
Automating some parts of your business can majorly simplify the way it operates.
You can save time and money by streamlining processes, increasing the efficiency of your business, and leaving less room for error. Sounds like a recipe for success - what’s not to like?
Accounting must be done accurately in order for a business to thrive, so it makes sense to automate this part of your operations. When it comes to bookkeeping for eBay sellers, Xero is a versatile tool that can automatically generate, record and display the data you need to make important financial decisions.
By automating the accounting side of your business, you’ll save time, make fewer mistakes and stay on top of your numbers. These are all critical components of running a successful, scalable online business.
Connecting your ecommerce platform with accounting software just makes good business sense.
When connecting your QuickBooks and eBay accounts, you need to be aware that without a third party to offer insights about your business performance, you may be limited in what details you can see.
Wondering whether now is the right time to sell your business? Use our free assessment tool to figure out how to get the best value and whether you need to do more now to get more later. Download it free here.
“Ideally, an entrepreneur will develop an exit strategy in their initial business planbefore actually going into business.”
Investopedia. Are you feeling validated by that quote or a little panicky?
We want to make life easy for ecommerce sellers when it comes to their accounting. Download your own free ecommerce bookkeeping checklistso that you know what regular tasks you should be completing to run a resilient, profitable business.
The way you record your inventory impacts everything else in your business.
Your profits, your taxes, and the value of your business to name a few.
But there isn’t just one way to do it.
This article was written by our friends at Airwallex. Check out www.airwallex.comto find out more about how their international banking services can help your ecommerce business to thrive.
So you’ve launched your ecommerce store and the orders are coming in.
It’s a great feeling.
But you’re keen to really expand. And selling overseas might be the best way to do it. Breaking into a new market is a great way for business owners to explore their untapped growth potential.
Never miss a beat in your ecommerce accounting withour free downloadable checklist*. Everything you should be doing on a regular basis to ensure your ecommerce books and business thrive, ready to go. *
“Inefficient processes (44%) are [one of] the biggest causes of wasted time within an organization.”
Planview’s Powering Productivity Study. Are you one of the many people wasting almost a third of your work day battling with inefficient processes?
We recently released our ecommerce bookkeeping checklist to help sellers and their accountants make sure their accounting process takes care of all the important stuff. Download it for free todayand never miss a step again.
“[Accounting] should be a top priority for your business. It will improve efficiency, maximize revenue, prevent fraud, [and help you] avoid tax-related penalties.”
Amy Crooymans, A2X. In a recent webinar, one of our A2X experts, Amy Crooymans, discussed three of the most common accounting mistakes made by ecommerce sellers.
Want to feel totally confident in your bookkeeping? Our Essential Ecommerce Bookkeeping Checklist is your roadmap to bookkeeping success.Download it for freeto enjoy tidy, reliable accounts from now on.
*“If you want to make business decisions you need to understand your KPIs. Your margin is the most important one. It allows you to understand whether your products are making money.” *
Lior Zehtser, Co-founder, ConnectCPA. Margins help you figure out whether your business is profitable.
Looking for a simple way to set your business up for growth? Documenting your processes could be the answer. Having a record of essential tasks increases productivity and consistency. And it’ll help your business to scale. This guide shows you why and how to record your processes with the help of our free bookkeeping checklist. We also hosted a webinar about how to use the checklist, joined by Juliet Aurora from AIS Solutions, Brittany Brown from LedgerGurusand Joe Carufe from KarbonHQ.
That’s how many visitors Amazon.com recorded in February 2022.
And they’re not just window shopping, either.
According to a Feedvisor survey, 89% of buyers agree that they are more likely to purchase from Amazon than other ecommerce sites.
It’s easy to see why so many sellers set up shop there. But how do they know best products to sell on Amazon FBA?
Find out with this guide.
Throughout this blog, you’ll notice mentions of our ecommerce bookkeeping checklist. It has everything you need to do all in one place.Download it for freeand never forget a single step again.
How profitable is your ecommerce business?
If you’re not sure how to answer that question, you need to look at your income statement.
Don’t have one? Then make one as soon as possible so you can confidently answer when the next person asks how your online venture is going!
“We will reject interesting opportunities rather than over-leverage our balance sheet.”
Warren Buffet. Balance sheets are one of the three key financial statements of a company.
Without one, you could misunderstand your current financial situation and hurtle towards bankruptcy. All because your assets, liabilities, and equity are out of balance.
The good news is that balance sheets are not too difficult to understand or prepare.
We’re going to show you how to make one so you don’t have to turn down interesting business opportunities against Mr Buffett’s advice.
This is a guest post from our friends at QuietLight, a world-class ecommerce business broker. Chat to them about selling your ecommerce business.
For many ecommerce entrepreneurs, accounting is the worst part of running their businesses.
Done manually, it’s a complicated, time-intensive process.
It’s also not something you can simply leave for an accountant at tax time. It requires constant input and planning. It’s about more than just managing your finances.
Save time, money, and stress with our free ecommerce bookkeeping checklist. A step-by-step process that you can follow daily, weekly, monthly, and yearly, to ensure you cover all the essentials for your business. Download here.
Every business should have a cash flow forecast.
Whether you’re an ecommerce seller, an investor, or the owner of a large company, a cash flow forecast enables you to extract important information about the financial health of your operations.
Having a borderless business is a sign of growth and success.
But it doesn’t come without fine-tuning logistical details along the way.
There’s a myriad of areas to consider to ensure the successful expansion of your borderless business.
And with fintech platforms on the rise, globalization is transforming the way businesses move and manage their money on an international scale.
Going global is exciting, but only if your accounting is in line.
“Most bookkeeping tasks are easy enough for anyone to do. The trick is knowing what the tasks are and when to do them.”
- Brittany Brown, CEO of Ledger Gurus
Imagine feeling completely confident in your ecommerce bookkeeping.
Best practice processes. Scalability as you grow. And knowing that it’s being done right, even when you’re not actively involved. That’s what our brand new Essential Ecommerce Bookkeeping Checklistis for.
“Focusing on a niche market makes it easier for the right customers to say, ‘This is for me.’”
Shopify. Niches are how you stand out. And on Amazon, that’s paramount. There are millions of other sellers bidding for attention. With a good niche, you avoid being a tiny fish in a mammoth pond. But what is a “niche” exactly? How do you spot one, and where do you start when it comes to Amazon product research?
Once upon a time, ecommerce accounting was an online seller’s nightmare.
Then along came A2X.
Since its release, dozens of products have tried to mimic the way we simplify and streamline the ecommerce accounting process, yet A2X remains the gold standard worldwide.
In this article, we reveal the features that keep A2X ahead of the ecommerce accounting curve and break down how, by prioritizing accuracy and clarity, this app continues to warrant the trust of thousands of sellers across the globe.
People shop via ecommerce for just about anything, so the list of things you could sell online is practically endless.
Where do you start when it comes to finding products that will be popular for your Shopify store?
In this guide, we aren’t going to just provide you a list of promising ideas. Whilst we will cover what has been performing well, we want to help you ask the right questions and perform insightful research so that you can make the best decisions for your business in the long-term.
Shopify was started in 2004.
Canadians Tobias Lütke and Scott Lake wanted to sell snowboarding equipment, but found the existing tools for ecommerce sellers too restrictive. So, they built their own. By 2007, the company was bringing in around $8,000/month. Now, monthly revenue is closer to $20million. As an industry leader, Shopify is constantly evolving to give customers the best experience, exceed their expectations and help sellers push boundaries. With access to the latest technology for AR and 3D shopping experiences through payment gateway options, chatbot add-ons and personalization tools, learning how to sell on Shopify in 2022 is rife with possibilities.
In 2020, it became official: Amazon is worth $1 trillion.
Sharing its name with one of the most biodiverse forests on the planet, Amazon’s seemingly infinite footprint and product offering are similarly expansive.
And Amazon.comis the tip of the iceberg.
From music streaming to healthcare, gaming, entertainment, cloud computing, and more, Amazon is so much more than an ecommerce platform - though it still holds the top spot for that, too.
Any Tom, Dick or Sally can sell almost anythingon eBay. With 1.3 billion listingson the platform alone, competition is fierce, and knowing the best things to sell on eBay to make money has become an art in itself. To be a successful eBay seller in 2022, you should have a handle on where eBay has been, where it’s going, and how this translates to buyer behavior. Armed with this knowledge, you can make informed decisions about how you will stand out from the significant crowd this year, and reach your selling goals.
To run a sustainable, profitable business on Amazon, you need to understand its fees. With such a huge variety of feeswhich are not always simple to interpret on statements, getting your head around them before you sell could make all the difference.
That’s where fee calculators come in. Amazon fee calculators help you predict what costs you might come up against when selling your products and whether they will be profitable.
eBay’s promoted listings enable sellers to advertise inside the eBay platform.
It’s a simple way to boost exposure for your items, and eBay shows these ads to more active buyers. In their words, by using their promoted listings, you’ll “market to who matters, when it matters”. Of course, there’s a price tag attached. As a seller, you’ll need to weigh up the benefits of this additional exposure against the cost of advertising on eBay.
Ecommerce sellers have a huge range of costs they need to keep up with - fees are just one of them.
But on goliath platforms like Amazon and eBay, fees can themselves take on a variety of forms, and it’s not always clear exactly what you’ve paid and why.
That is, if you aren’t well-versed in how they work, or using the best tech to track them (psst… like A2X!
“Your brand is the single most important investment you can make in your business.”
Steve Forbes, Editor-in-Chief at Forbes magazine. It is estimated that there are somewhere between 12 and 24+ million ecommerce storesonline.
With no “passers-by” like you might have on the street, ecommerce sellers need to do a bit of extra work catching attention and building recognition.
And branding is a fundamental way to do that.
eBay is the second most popularshopping site in the world.
But Etsy has seen up to a 7000% year-on-year increasefor some of its categories.
When choosing between Etsy and eBay, it might feel like you’re picking between giants.
Well, you are.
The key to choosing your platform is to consider your product, your customers, and the goals you have for your business.
Etsy and eBay offer different opportunities - and the way you interact with them might determine just how much money you can make on each.
Applications are designed to level up your tech. They add to, elevate and expand on the tools you’re using, giving you the ability to customize how you run your business, and how customers engage with it. With apps for live chat, interactions, VR, AR, social media sharing, email marketing, accounting, and more, the potential is hugely exciting. But with over 3,000 appson Shopify’s app store, how do you choose which of these areas to invest in?
“Many a small thing has been made large by the right kind of advertising.”
Mark Twain. Digital advertising is a necessity for any Amazon seller trying to grow their business.
It’s how you position your products before your target audience, discover what they’re looking for, and convert them into customers.
And to make things simple for its sellers, Amazon has created its own advertising platform.
There are Etsy shops getting almost 50% more salesbecause of one simple differentiator.
According to an Etsy study, it’s due to offering buyers multiple payment options (compared to shops with just one payment method).
It turns out that ecommerce customers have certain expectationswhen it comes to buying online, and a lack of payment options is up there in the top 6 reasons people abandon carts.
Since 41% of shoppershave abandoned a transaction during checkout in the past year, it’s a good time to optimize your checkout experience to ensure you’re not losing sales.
Almost 90% of UK shoppersuse Amazon.
The platform has almost 300,000 sellersalready.
In 2020, its revenue rose 51%, accounting for 5.5% of the country’s retail turnover.
There’s huge demand and significant supply, but Amazon both in the UK and abroad shows no signs of slowing down or decreasing in size.
You might be wondering whether selling on Amazon UK is worth it.
Well, it seems not only was Amazon dominating long before we’d ever heard of “COVID-19”, but that the pandemic may have added fuel to its momentous fire.
Are you thinking about whether you should keep your accounting skills and spectrum broad, to attract as many clients as possible - or niche, to appeal to a more specialist crowd?
Well, Catching Clouds founders Scott and Patti Scharf are big fans of the niche.
The Early Days of Catching Clouds Catching Cloudswas founded by husband and wife duo Patti and Scott Scharf. Scott, a self-proclaimed IT geek, and Patti, a CPA, power user, and database writer.
Here at A2X, we’re always looking to make sellers’ lives as easy as possible when it comes to their accounting. Find out below how a new feature we have developed streamlines a tricky aspect of accounting for Shopify. As a Shopify seller, you might already know that the platform allows the issue of gift cards in two main ways:
Gift cards are sold to customers to use in the future, processed via checkout like any other order, and, Gift cards are issued manually as credit, perhaps for returned goods or as a goodwill gesture to help resolve a problem.
“Pushing a company agenda on social media is like throwing water balloons at a porcupine.”
Erik Qualman, author and motivational speaker. It’s no secret that social media is a powerful tool for businesses.
But its power lies in engaging with the right audience in the right way, which is not an easy thing to nail. Particularly when audience interests, needs, and expectations change.
Simply posting an ad or a product is not enough.
Many businesses start out with a mission and values.
But as they grow and acquire more people, systems, and operational changes, how do they keep that identity strong and authentic?
Browne Accountinghas managed it and here, they talk us through how.
Keeping Values at the Heart of Big Business Decisions Before Covid-19 made working from home not only necessary but more widely accepted, co-founders Cameron and Mallory Browne began their remote accounting firm, Browne Accounting, while living in Southeast Asia.
Are you keen to know how the experts choose which accounting apps they use?
Perhaps you have a few integrated already, and want to manage them better?
Check out how Financly’s team get the most out of their apps.
How To Achieve The Perfect App Stack Over the last seven years, sisters Connie and Teresa have built their very own virtual bookkeeping firm, Financly. With over 35 years of experience in the world of bookkeeping and accounting, they knew they wanted to begin their own journey.
“Amazon has transformed the small miracle of each delivery into an expectation of modern life.”
New York Times More than 50% of US shoppersturn to Amazon first when searching for new products.
80% of thoseare influenced by the lowest shipping prices, and 72% are looking for the fastest option.
You could also lose more than half of thosedue to shipping-related costs at checkout.
Amazon rewrote the rules on delivery and as a result, its shoppers have certain expectations.
As a Shopify seller, how much are you paying in fees?
Do you know? Did a number just pop into your head?
Or are you thinking… “It’s complicated…”
You’d be right about that. But if you don’t know the details about the fees you’re paying, you’re at risk of paying too much. And paying too much affects your bottom line.
We’re here to break it all down for you so you can better understand where your money is going, and whether there might be a cheaper option.
This article is a summary of a video interview conducted for the Ecommerce Back Office Facebook group. This group is a community of ecommerce business owners, sellers, accountants, and anyone else involved or interested in selling online.
It is always open to new members, and there you’ll find interviews like this one, discussions, polls, and new connections across the world. Check it out here.
In this piece, Bean NinjasDirector and ecommerce accounting specialist, Tracey Newman will be sharing a range of wisdom and insights when it comes to international expansion for ecommerce businesses.
It’s me, technology. It seems that there’s been some misunderstanding. I did some research and accountants are among some of the top professions that regard me as hugely valuable, and full of potential. And yet, a third of youfeel threatened by me. I think that’s a shame. I’m here to elevate your skills and training, not displace them. Allow me to explain. I’ve been there with you since the beginning, I just look a little different Technology and accounting have gone hand-in-hand since the Mesopotamian abacus, around 2700-2300BC- perhaps even earlier.
This article is a summary of a video interview conducted for the Ecommerce Back Office Facebook group. This group is a community of ecommerce business owners, sellers, accountants, and anyone else involved or interested in selling online. It is always open to new members, and there you’ll find interviews like this one, discussions, polls, and new connections across the world. Check it out here.
In this article, StockTrim co-founder Dominic Sutton reveals the most valuable lessons he’s learned about inventory forecasting during his career, why it’s essential to get it right, and how ecommerce businesses can make the most of accurate forecasting systems.
Ecommerce sellers don’t have the advantage of meeting their customers.
They can’t count footfall or measure reactions. They can’t see what a customer browses and what they walk past.
Analytics are a lens on your Shopify store. You can learn about behavior, interaction, visitor numbers, and so much more - if you only know where to look. And crucially, what to do once you have. Google Analytics is one of the best tools out there to help you.
If you’re an Etsy seller concerned about whether you should be collecting sales tax yet, or how to remit it, then this guide is for you.
Sales tax can get confusing.
Not only does every US state have its own criteria for when to pay but rates, rules, and filing frequencies differ too.
But you’re not in it alone.
There are plenty of ways you can successfully handle your sales tax that shouldn’t sink your business.
“Around the world, businesses are prioritizing fulfillment to fight rising costs and meet consumer expectations.”
Shopify Future of Ecommerce Report, 2021 Shopify shipping is essential to get right, now more than ever. Nailing your shipping strategies will directly affect how many products you sell, how many customers keep coming back, and how much money your business makes annually.
There are no two ways around it.
Selling on Amazon takes time, money, and effort. Like any business, you get out what you put in.
But if you want to grow your Amazon store and increase its annual turnover, you need to find ways to simplify and streamline your sales process.
So, what’s the solution?
Amazon automationtools are here to help.
So whether you’re looking for the next app to add to your business stack, or the ultimate Amazon FBA toolkit, you’re in the right place.
Facebook advertising can be confusing, especially if you’ve never done it before.
Many features and a huge audience make for an effective marketing platform, but also a complicated one.
However, there is one feature that makes tracking and understanding the data from your ad campaigns super simple: Facebook pixel.
Here, we’ll explore the Shopify Facebook pixel integration – its benefits, how it works, how to set it up, and a few expert tips to help you make the most of your Facebook ad campaigns.
If you’re an Etsy seller in the UK and want to better understand its fees, then you’re in the right place.
You won’t just be charged for listing items on Etsy.
Depending on which services you use from the platform, you could be paying numerous fees to run your business. There are ways to manage and reduce them, but you need to know exactly what to expect and how to track them to do this.
Amazon is competitive.
It gains a new seller every minute, and with that kind of competition, you need to provide excellent service every time - and shout about it.
Positive reviews are a huge driving force for great performance on Amazon. Your Amazon feedback rating impacts how visible you are in search results, and whether people will try you out.
But it’s far from simple to build and maintain great feedback on Amazon.
Bad inventory management costs retailers trillions of dollars a year. Inventory listed but not available, available but not listed and preventable returns are all the sources of staggering losses for retailers both on and offline. And with such intense competition, can you afford to lose the customers that find you? In this guide to Shopify inventory management, we’ll be talking about how you can manage your stock efficiently and what you can learn to improve your systems along the way:
We have an exciting announcement here at A2X.
Ecommerce is a diverse, thriving, and rich business to be in right now. But it takes a huge amount of dedication and learning - no matter your starting point. Not only do sellers need to pick the right products to sell on the right platform, at the right time, and to the right customers, but they need to manage their fulfillment, their taxes, and their accounts properly.
Listen up, talented artisans.
If you’re eager to share your creations with the world but unsure whether Etsy or Amazon is the right space for you, don’t go away.
Etsy is an established marketplace of similar sellers that saw a growth of 160%in its habitual buyers last year (2020).
The ecommerce giant that is Amazon has a dedicated section for handmade products, giving sellers like you access to its unparalleled visitor numbers.
“Immediacy, convenience, and speed are top consumer demands. This is the new normal.”
Shopify’s Future of Ecommerce Report, 2021. More than 70% of consumersindicate convenience and free shipping are their top reasons to shop online. With such a large majority of your customers depending on you for these things, your Shopify fulfillment method has to be top-notch. If it’s not, you could be losing out on a huge chunk of your audience.
The VAT rules changed for ecommerce sellers in June/July 2021.
If you’re an Amazon seller based in or selling into Europe, here’s what you need to know about VAT.
In this brief guide to your Amazon VAT obligations:
Table of Contents What is VAT? How Much is VAT and Who do I Pay? The 2021 Ecommerce VAT Package The Best Warehousing and Fulfilment Services Keep Track of Your Taxes with A2X Also on the blog Learn how to manage your Amazon accounting the right way
Updates: Changes were made to VAT for Shopify sellers in the UK and EU from July 2021 and again in April 2022. Any seller with business in the EU is likely to be required to collect VAT, with some exceptions. They can now do this for multiple countries all in one place. For the UK, though thresholds haven’t changed, import requirements have, and as a non-EU member state, sellers will need a separate VAT number to remit tax there.
If you’re interested in earning commission through Amazon affiliate links, then this guide is for you.
81% of brandsnow rely on affiliate marketing to promote their business.
And 40% of US merchantsreport that affiliate programs are their top customer acquisition channel.
So where better to begin (or continue) your affiliate marketing journey than with the ecommerce monolith that is Amazon.com.
But you have to be approved to do it, and there is more than one way to get paid to send people to Amazon.
Are you an ecommerce seller (or accountant) running more than one sales channel and A2X account? Or perhaps you’re considering expanding and will need to do this soon?
A2X offers multi-channel plans so that you can integrate and manage your accounts seamlessly across your business. This guide will take you through your plan options and how to set this up. Table of Contents A2X Multi-Channel Plans How to Connect Your A2X Accounts with a Multi Plan For any ecommerce seller on multiple platforms For premium Amazon and Shopify sellers using the same platform Accounting for Multiple Channels A2X Multi-Channel Plans The plan levels are based on your combined sales volume per month.
Amazon and Shopify.
One is the most popular ecommerce retailer in the world, worth over $1 trillion.
The other powers some of the biggest commercial nameson the internet, including Tesla, KKW Beauty, Victoria Beckham, RedBull, Kylie Cosmetics, AllBirds, and more.
But there are perhaps more differences between Amazon and Shopify than there are similarities.
Amazon is a marketplace facilitator. Shopify is an ecommerce platform.
The strategies that sellers need to adopt to be successful on these sites vary greatly, and the trade-offs might just sway you towards one over the other.
Pinterest is the digitized version of the corkboard above your desk.
It’s that vision board that holds all the ideas and inspiration you want to save for later. Today, that often involves wishlist products, and as such, Pinterest has become a marketing tool for ecommerce sellers.
Forget judging a book by its cover. In 2021, people are judging books by their pins.
So let us share with you a template for getting your Shopify store on Pinterest, and everything you need to know about rich pins, buyable pins for Shopify, how to use Pinterest for business in 2021, and how you can sell on Shopify and Pinterest without a website.
Amazon gets around 200 million unique visitorsevery month.
Amazon Handmade gives crafty sellers and makers the chance to get their original products in front of this same audience, and it comes at a slightly different price.
This article will explain all you need to know about Amazon Handmade fees, other requirements for selling on Amazon Handmade, and how to simplify the fee process.
In this blog about Amazon Handmade fees:
Calculating your eBay fees ahead of time makes good business sense.
After all, as a cost to your business, you want to make sure you aren’t spending a cent more than you have to.
In this blog, we’ll take you through the eBay fee structure and where to find more information, along with the best eBay fee calculators on the internet so that you can plan with confidence.
In this article on eBay fee calculators:
Unlike other marketplace facilitators, Etsy has a niche.
And the success of the top-selling products on Etsy may have just as much to do with the sellers and how they operate as what the items are themselves.
Best-selling items change all the time. So instead of giving you a fish, we are going to teach you to fish.
This guide will explore who sells on Etsy, who buys on Etsy and why this should dictate your strategy.
Spending money advertising your Etsy store might feel a bit daunting.
How much should you spend? Is it worth it? Will you see any return, and how quickly?
In this guide, we’ll explore exactly what your Etsy advertising options are, both on and off the site.
We’ll also cover the free things you can do to boost sales, and ensure that you’ve maximized every opportunity to succeed on Etsy - paid and unpaid.
Etsy is the home of the makers, the doers, the dreamers, and the creators.
Original, vintage, and hand-made products are Etsy’s trade. So naturally, it attracts crafty sellers wanting to share their talents and skills.
But Etsy is an ecommerce platform first and foremost - one with a trade value of $2 billionon the NYSE.
Selling on Etsy successfully takes more than simply signing up and listing a product. The top sellers understand their place and that of their customers in the bigger picture.
This is a guest post from our friends at MerchantSpring, a tool for managing your ecommerce business.
Whether you run a small start-up or a major enterprise, there’s no question that your online presence is a crucial investment for your business.
The trick is knowing where to spend your money for the best results with the greatest return. In this blog, we’ll be looking at the expected and unexpected costs that come with ecommerce.
“Sellers control the most important factors in Etsy search placement.”
Etsy. Etsy SEO is worth your time. Still one of the top digital marketing strategiesfor the greatest return, SEO for Etsy can be broken down into a few key areas for relatively straightforward application.
The only challenging thing about SEO is that it’s a journey, not a destination. You’re never really done with SEO, whether on Etsy or elsewhere.
What do a pair of snowboarding, outdoor enthusiasts, and an urban apartment-dwelling creative have in common?
All were entrepreneurial founders of two of the most popular and successful ecommerce businesses in the world to date: Shopify and Etsy.
They built the tools to enable imaginative sellers like you to bring your products to the world.
But which is right for your business?
If you sell craft, handmade or vintage items (which meets Etsy’s criteria), and you’re unsure whether to kick off with Etsy marketplace or go solo with Shopify, this guide is for you.
If you’re looking to turn a nice profit in the ever-expanding realm of ecommerce, or to expand your business, eBay could be a great option for you.
You can be up and running in minutes and don’t need to be a registered business yet - perfect for a seller dipping their toes into ecommerce.
But access to almost 200 million active buyersdoesn’t come free. And listing fees are just the beginning.
Today, there are around 187 million active buyerson eBay.
Getting access to that kind of traffic comes at a price, and that price is eBay seller fees.
But seller fees on eBay, like with many of the ecommerce platforms, aren’t always straightforward.
Sure you’ve got your standard listing fee, but there are circumstantial fees that come into play only in certain scenarios, and those are what sellers need to get their heads around.
Integrating eBay with cloud accounting software is a great way to save you time, make sure nothing is missed in your bookkeeping, and give you access to financial information anytime, anywhere.
Sage is a fantastic option for any eBay seller, with plans that can grow with you and an internationally-acclaimed reputation.
But whilst integrating eBay and Sage is a smart first step, it won’t get you the optimal accounting stack for ecommerce - that’s the same for any other platform and accounting software provider, too.
Selling on multiple sales channels should mean more sales, not more admin.
Here’s what A2X, the leading ecommerce accounting software, can do for your business. What’s Challenging About Ecommerce Accounting? Ecommerce is not like brick-and-mortar, where the majority of transactions occur directly through the bank.
With ecommerce, transactions are occurring through the sales channel and businesses receive lump deposits net of fees. When you start selling on multiple sales channels, these difficulties compound.
This is a guest post from our friends at Bookkeeper360, experts in tech-driven accounting solutions for business owners that want more time back to focus on their business.
When you boil down financial reporting, you find two vital elements for your business—accuracy and speed.
If you’re an owner or financial professional at an ecommerce organization, financial accuracy is a well-understood aspect of your business. That said, speed is just as important.
For Amazon sellers, Seller Central is mission control.
Everything you need to run your business is there in one centralized location, but some aspects have greater tools and resources available to help you than others.
That’s what we’re going to explore here.
In this blog, we’ll take you through the elements of your Amazon Seller Central account and how you can use them to your advantage. Plus, we’ll mention what you get with different subscription plans and where to go for more information.
When you sell online to a global market, you’re opening up your business to a world full of consumers with disposable income.
You’ll also become subject to meeting tax thresholds in multiple economies with different rules (sigh).
And with ecommerce being the lucrative beast that it is, tax authorities in those multiple economies are onto you.
But don’t close up shop just yet. In this guide, we explore all things VAT in the UK and Europe - what it means for eBay sellers like you, and how to get started.
This guide was correct at the time it was written. Please refer to the official tax authority webpages for the most up-to-date information, and your accountant for tailored advice.
A top priority for any established Amazon seller is charging and collecting sales tax.
Why? Because if you’re unable to meet your sales tax obligations, the responsibility and repercussions rest solely on your shoulders – not with Amazon.
Therefore, it’s imperative to know something about the sales tax applicable to your Amazon business – right from the start.
Customers are happier when they know what to expect, and adding a shipping policy to your Shopify store helps to manage those expectations. If you do it right, your shipping policy can act as a highly effective sales tool - at once making a commitment about your service, and letting customers know what happens with their items after they click that buy button.
A clear and concise shipping policy benefits both parties.
Anyone who runs an online store will know that the beauty of ecommerce is its capabilities are limitless.
It’s a fantastic way for retail stores of any type and size to reach a new community of customers – enabling you to expand your sales worldwide without the extensive costs of setting up a brick-and-mortar store.
Ecommerce has leveled the playing field, making it possible for small businesses to compete with corporate giants on an international stage.
Today’s consumers are all about instant gratification, and that certainly translates to online shopping orders.
In fact, 80% of shopperswant a same-day delivery option, 56% of 18-34 year olds expect it, and around 61% are prepared to pay more for it.
Enter: Amazon FBA.
With a reputation for innovation and hitting the nail on the head when it comes to solving customer pain points in a timely (and perhaps even anticipatory) manner, Amazon delivers yet again.
On 26th May 2021, we took part in a webinar with Insightful Accountantto discuss how ecommerce sellers need different kinds of accounting support based on their selling platform. We explored what’s changed and still changing, the key accounting challenges for each type of seller, and trends emerging within the industry. Armed with these insights, ecommerce accountants can anticipate the changing needs of their clients this year and better serve them in their journeys.
As an Etsy seller, creativity comes naturally to you. But if coming up with a good Etsy shop name has thrown you off your game, you wouldn’t be the first. Equally problematic is if you’ve already come up with your preferred store name, but tragedy strikes, and your name has been used by another Etsy shop.
Not knowing where to begin is expected, but we’ve got you covered.
Instead of heading back to the drawing board without a lick of inspiration, use this guide to ignite your creativity.
In 1981, David Goldman wanted to streamline the accounting process for his own business.
With few accounting automation options available at the time, he decided the best way to do this was to create a platform of his own.
Thus, Sage was born.
40 years later, Sage is now one of the largest tech companies in the UK. A brand defined by its premier resource planning software, and a charitable side to boot.
As connector apps, A2X and Bold are important parts of optimized ecommerce accounting automation.
These apps ensure that your Shopify data is calculated accurately and organized. But the way they each do this and the resulting outcomes are quite different.
One of them has a few additional features to offer - features that can transform the way you do business. And you might be surprised to hear that switching is not only easy, but books can be backdated, so it’s almost like the migration never took place at all.
Amazon first opened its digital doors to sellers worldwide in the early 2000s.
But back then, people only had the option to sell either books, CDs, or DVDs.
Nowadays you can find and sell just about anything on Amazon.
From groceries and toy cars to bonsai trees and mobile phones; if it can fit in a Fed-Ex van or be downloaded as a PDF, you’ll find it on Amazon.
So you’re thinking about joining the Etsy family? Exciting!
Etsy is the platform for creatives, where imagination comes to life and buyers love personal touches. It’s all about the hand-made, human feel, but it does need to start with some techy steps first. Setting up your Etsy seller account is very easy, and this article will show you exactly how (as well as the crucial next step). In this article on how to set up an Etsy seller account:
Are you considering turning your hobby into a business using the Etsy marketplace?
Well, you’ll be joining a platform that gets around 81.9 million buyersthese days looking for handmade goods just like yours.
Before you dive in though, we invite you to lower the tools for a moment and funnel that creative flow into a top-notch Etsy business plan. It’s crucial to understand exactly what your business does, its identity and how it’s going to function so that when it comes to making costly decisions, you have a road map to guide you.
Automation is the process of letting the technology we’ve created do the leg work for us.
Machines can do so much that we don’t need to do ourselves, and often better than us. By automating those tasks, we get to preserve our time for the things human beings can add value to with experience, intuition, and nuance—the strategy part of the business.
But like most things today, the options of technology out there can be a little overwhelming.
Having apps that automate parts of your to-do list is great, but if they don’t talk to each other, you still need to mediate.
With the plethora of app options out there today, developers have already solved this problem for us and continually update and upgrade the way our tech solutions communicate. We have become masters of automation, and Etsy sellers are just as much invited to the party as any other seller.
Confused by Amazon fees? We don’t blame you.
Amazon has rather a few to get your head around- subscription and listing fees are only the beginning. But it’s crucial for your bottom line that you understand which apply to you and why.
In this article, we’ll be exploring referral fees, specifically: What they are, how much they are and how to stay on top of them.
In this guide on Amazon’s referral fees:
Based on a collection of studies, around 70% of customerswill leave a site even after adding an item to their shopping cart.
There are numerous reasons for this, but a common one is a complicated or drawn-out checkout process.
Integrated payment solutions are one answer that ecommerce platforms have come up with. Shoppers save their details once so that purchase journeys simply consist of a Buy It Now button.
So you’re ready to sell on eBay, but you want to make sure you do it right - and actually make a profit? Strap in! eBay gives everyone from merchants to ecommerce hobbyists an easy-to-use platform to make sales, but it’s not without competition. With almost 200 million buyers and 1.6 billion listings, sellers need to maintain a competitive edge in order to succeed. We’ve been busy looking closely at eBay, and we’ve written a number of guides and articles on how to use the platform successfully.
Time is one thing you can’t buy and if you’re an Etsy seller, it’s probably safe to assume that you already need as much of it as possible to create.
Bookkeeping is fundamental to the survival and growth of your business, so it needs your attention and your investment. Fortunately, neither of those things need to be significant - not with the technology that allows you to work smarter, not harder.
The theme of your Shopify store dictates almost everything.
What your customers see, how they interact with your brand, what media and add-ons you can include - the list goes on.
It’s important to think about what you’ll need from your theme before you go diving in and get carried away by the cool color palettes and exciting plug-ins.
Plus, with a little planning, you’ll be able to see whether a freebie will cover your bases or if a paid option is worth your time and money.
Etsy is for the makers and creators.
If you’re an Etsy seller, it’s probably safe to assume that you didn’t open a store wanting to focus all your time on managing its accounting.
As you’ll no doubt be aware, your bookkeeping has to be a priority. Fortunately, there are some excellent software options, apps, and integrations out there all designed to make your life as easy as possible.
And if you’ve already signed up to QuickBooks, you’re halfway there.
If you’re an Etsy seller, you’re likely driven by creativity and probably didn’t get into business to manage bookkeeping.
Accounting might not be in your comfort zone, but even if it is, there are quicker and more accurate options for managing it besides manually inputting data.
This way, you can get back to what you do best: Making.
Apps and integrations are beautiful things, but you need to understand how they work with, and optimize, one another to get the best out of them.
In the mid-1990s at the dawn of ecommerce, online sales weren’t worth enough to garner the attention of tax authorities.
Sales tax was something paid by businesses with a fixed, physical address, and back then, most had that. This isn’t the case today.
Since Shopify’s inception in 2004, US ecommerce sales revenue has skyrocketed from $75 billionto $787.9 billionin 2020. In the last decade alone, the industry has multiplied itself almost five times over.
This is a guest post from our friends at specialist ecommerce accounting firm Bean Ninjas.
When you’re first starting out, you might be tempted to do your own bookkeeping and accounting.
However, as your business grows, it is rarely a good idea to keep DIY’ing it. Every minute that you are spending on bookkeeping is time you aren’t spending on growing or running your business.
If this resonates with you, then read on to learn how to hire and vet the right bookkeeper for your FBA business.
There’s money to be made on eBay.
In 2020, eBay sales revenue grew 22%- and that’s not the only thing that grew.
With more sellers joining eBay every day and approximately seven million in the USalone, competition is rife. Growing on the platform takes work.
But that’s why you’re here - to find out what your options are and how to leverage every available tool at your disposal. And we are here to serve.
When most people think about doing business with Amazon, it’s in the format of using the platform to sell to customers. But this isn’t the only option.
You can sell to Amazon directly, as part of their vendor program.
Becoming an Amazon vendor takes away the customer service or brand management aspect of your business, replacing it with a focus on distribution and fulfilment. You are the backend, not the front.
Thinking of selling online, but unsure of which platform to pick?
While Shopify and eBay are both popular ecommerce platforms, this is where the similarity ends. They are, in fact, very different, and they offer different experiences to both buyers and sellers.
So, what do these experiences look like and how should you go about picking one? In this article, we’ll find out.
In this Shopify vs. eBay guide:
Online shoppers like choice. And they prefer businesses that give them choice.
In fact, Business Insider reportsthat limited payment options could account for a quarter of abandoned shopping carts in the US. But with no shortage of payment gateway options for ecommerce sellers, how should they pick which ones to offer, and do buyers have a resounding preference? Is Amazon Pay the obvious choice for Amazon sellers, for example, or are there better alternatives?
At their Reunite 2020 event, Shopify announced some pretty cool updates for 2021.
As one of the leading ecommerce tools, Shopify is constantly evolving and expanding its software, adding new apps and integrations to help its merchants thrive.
And with over 600,000 sellerson the platform, if you’re one of them, you’ll want to know as many Shopify tips and tricks as early as possible to come out ahead.
So if your Shopify seeds are planted and you’re ready to show them some TLC, this guide is for you.
When Sage began life in 1981, Shopify didn’t exist.
Sage founder David Goldman wanted an automated accounting software solution for his business, so he built it himself.
In 2006, Shopify founders Tobias Lütke and Scott Lake didn’t like the ecommerce software available to them at the time, so they built what they wanted themselves.
Both Sage and Shopify were conceived by entrepreneurs that wanted the freedom to customise, automate and grow their businesses.
This year, eBay will be 26 years old. A lot has happened in 26 years. With technological advances taking trillions of dollarsoff the streets and into the digital space, ecommerce has exploded. And going into 2021 with the COVID-19 pandemic keeping us indoors, the ability to buy online has never been more essential.
With a wealth of tools now available to beginners, it’s difficult to know where to start and how to get the best out of the eBay platform.
Canada’s sales tax is a bit of a mutt.
It’s not quite the same breed as the US, or as Europe, but almost a cross between the two. Canada’s sales tax is called GST (goods and services tax), and is a value-added tax, meaning it is added onto the value of an item at each stage in its manufacturing journey. Although the GST rate is consistent across Canada, the story barely begins there.
Most Amazon sellers bring in around $1000-5000/monthin revenue, with around 6% making upwards of $250,000.
Even after the costs and fees hidden behind those figures, that’s some substantial income.
“Income” doesn’t just mean “salary”. A one-off garage sale worth $200 is technically income. It is simply money received, usually in exchange for goods and/or services. Selling on Amazon very much qualifies as an income source.
For this reason, Amazon sellers could be liable to pay tax on their Amazon income.
Time is money, and when you’re a one-(wo)man band running your own eBay store, you need to take control over both as early in the game as possible. This is where eBay automation comes in.
Humans are typically not good at lots of complicated, repetitive tasks - but software is designed for it. Best of all, it’s designed to handle these tasks at high volumes, scaling with you on your journey.
The internet is full of helpful eBay tips for sellers, so in this guide, we bring the best of them together in one place. Our eBay selling tips range from general dos and don’ts, to the nitty gritty details for the most ambitious, dedicated seller. Here’s what we’ll cover, at a glance:
Beginner tips for eBay seller success: Areas to focus on at the start Automation and accounting for beginners eBay seller tips and tricks to sell more: Store tips Listing and fees tips Description and pricing tips Fulfilment and supplier tips SEO tips Tips on what not to do on eBay Selling on eBay: Tips for Beginners If you are new to selling on eBay, use our tips below but focus on the following areas first.
Successful ecommerce businesses rely on efficient shipping processes.
Without them, selling online is neither sustainable nor scalable. With many online retailers offering same-day or even 2-hour delivery options, consumers now expect their purchases to arrive quicker than ever.
Being smart about your shipping is crucial to striking the right balance between good customer experience and realistic fulfilment on your end. The question is, can you both afford and manage the options you are offering?
The eBay Global Shipping Program makes selling overseas a breeze. By taking care of packages on the behalf of sellers and sending them across the world, eBay opens up its entire global marketplace for trade. What’s in it for sellers? Millions more customers without the hassle of customs and imports paperwork. And for buyers? Access to more products with transparent shipping fees and processes. So, how does it work exactly?
Opening an eBay store is an excellent portal into the world of ecommerce. As one of the simplest, no-fuss selling platforms available, eBay is full of possibilities, and open to anyone. eBay has been around for a good while - since 1995, to be precise - and has positioned itself as a ‘selling partner’ in the ecommerce space. The platform is designed for sellers, whether you’re selling unwanted items, or scaling a full-time ecommerce business.
Sagebegan life as a startup in 1981. Founded by David Goldman to automate the accounts of his own business, Sage now has 13,000 employees worldwide and millions of customers across 23 countries. And, in 2018, Sage took their offering to the cloud. Today, we at A2Xare excited to announce that Sage Business Cloud Accounting customers will now be able to integrate with our software for seamless ecommerce accounting. Truly a world-class software match made in heaven.
In 2020, the US is estimated to have spent over $370 millionon retail ecommerce sales. By the end of 2021, this figure is expected to surpass $400 million. When Amazon was founded, the internet was relatively new and sales tax was something cemented in bricks and mortar. People shopped on streets - not online - so a physical address was enough for states to keep tabs on businesses. Today, an ecommerce business might have no address or multiple.
There are over 25 million sellerson eBay. No matter what you sell, with competition like that, you need to have a plan. Fortunately, with around 182 million users, there’s plenty of opportunity to grow and thrive. The purpose of an eBay business plan is to articulate your idea and figure out how to make it feasible. To do this, you will need to explore the different aspects of your business which define what it is and how it will operate.
Accurate Amazon accounting is a must.
The best thing you can do for your ecommerce business is to build an accounting framework that scales and nurtures your success. What does this look like?
Great accounting software and the support of a specialist Amazon accountant.
Whether your accountant just helps you get set up or supports you full time, their help and advice can be invaluable to the growth of your Amazon store.
As an eBay seller, you’ve got some competition.
With 182 million users and over a billion listings, you need to leverage every free tool at your disposal in the quest for that lucrative, competitive edge.
Search Engine Optimization (SEO) isn’t just for Google. A free driver of organic traffic, eBay SEO just might be your new marketing best friend - it’s certainly not one to ignore.
So, how does SEO for eBay work, exactly?
Shopify offers payment gateway options for over 100 providersacross the world.
So that you can provide your customers with the options most likely to suit them. A2X supports thousands of Shopify sellers with their accounting. No matter the payment gateway used, A2X interprets bank deposits and ensures that sellers have all the information they need to be able to manage their finances properly. With access to this kind of data, we can help sellers determine which gateways are proving most popular among our subscribers.
Updated January 2021.
Merchants who sell through Amazon can now secure dedicated ecommerce loans, but what does this look like in the books?
In this article, we’ll explain eligibility, Amazon lending transactions, and how to record Amazon loan repayments.
Table of Contents Lending for Ecommerce: Amazon Loan or Bank Loan? Eligibility for Amazon Lending What are Amazon Lending transactions? How do Amazon Loan repayments work? Accounting for Amazon Lending How it works Accounting mistakes Asset and liability transactions A2X for Amazon Lending Also on the blog Learn how to manage your Amazon accounting the right way
Updated December 2020.
If you’ve ever reviewed an A2X settlement summary, you’ll know Amazon has some very creative ways to charge Amazon sellers money.
But what do ShippingChargeback, GiftwrapChargeback, and SalesTaxServiceFee really mean, and how do you reconcile them to the Amazon Reports > Payments section of Seller Central?
To help this make sense, we’re going to walk you through reconciling your Amazon seller statement. We’ll use an example that matches low-level transactions in an Amazon settlement report to the corresponding high-level transactions Amazon considers in their report summary.
Anyone who runs an online store will know that the beauty of ecommerce is that its capabilities are limitless.
It’s a fantastic way for retail stores of any type and size to reach a new community of customers – enabling you to expand your sales worldwide without the extensive costs of setting up a brick-and-mortar store.
Ecommerce has levelled the playing field, making it possible for small businesses to compete with corporate giants on an international stage.
Your accounts should offer insight into your business.
They should show successes, and they should show opportunities to help to pinpoint trouble areas. Having complete and accurate financials means that you, as an ecommerce seller, have the information you need to make better, smarter decisions about the future of your business. You know the true cost of sales, where you’re making and losing money, and where you could be investing more.
Like all business owners, Amazon marketplace merchants may one day weigh up the prospect of selling their business. And what will prospective buyers want to see? Accurate accounts demonstrating a healthy business.
Even if you’re not considering this anytime soon, it’s sensible to behave as if this will be your goal one day. If you do this from the beginning, not only will your business operations be organized and transparent for you, but it will be much easier to go into the sales process prepared for success.
Please note: ecommerce sales tax is still evolving and changing. These guides are correct at the time they are written but please consult official government pages or accounting professionals for the most up-to-date information applicable to you.
The Supreme Court ruled in favor of South Dakota, granting the state authority to impose sales tax obligations on out-of-state transactions. Online sellers will have a new set of obligations and challengesahead of them, while states could potentially gain billions in revenue.
On June 6th, 2018, we hosted a meet-up for Amazon sellers, accountants, and people involved in the ecommerce space. This meet-up was held after the first full day of Xerocon in Atlanta, Georgia.
We were privileged to have Brandon Wasser and Cat Fogarty present as guest speakers.
Brandon Wasser is a Senior Account Manager at Bookkeeper360. Through this role, he has learned a great deal about emerging technologies and trends that are shaping the way we shop, and how businesses need to evolve in order to thrive in an ever-changing environment.
How HPC accounting uses A2X to help solve its clients’ problems HPC Accountingis something of a trendsetter among US accounting firms.
The business started in 2011, and unlike most firms at the time, focused on providing value-based services, rather than charging clients hourly rates.
Since 2016, they have abandoned time tracking altogether, preferring to give their clients personalized service and in-depth advice.
As Accounting Manager Catherine Fogarty explains, HPC was also an early American adopter of Xero.
Accounting and taxes are often two of the biggest hurdles for ecommerce sellers. This is especially true for small businesses or those just starting out.
Accounting for eBay sellers may be particularly complex, due to the fact that eBay operates 26 international siteswhich sellers can leverage, spreading their reach to customers across the globe. Understanding your cash flow, inventory and tax obligations at all times is critical, not only to your success and growth as an ecommerce business, but to your survival.
This post is a guest post from Michael Fleming founder of Michael J Fleming & Associates.
This article is about the changing tax obligations of ecommerce sellers in the US and was correct at the time it was written. For more detailed information (no matter your platform) about how sales tax affects you, and where to get the most up-to-date advice, check out our blog here.
On the afternoon of October 23 2018 Amazon stated that it had received a “valid and binding legal demand” from the state of California to turn over third-party seller information.
We consider ourselves very lucky at A2X, because we get to work with some pretty awesome brands. The companies that we work with have been started by a diverse range of passionate business owners throughout the world, all with big ideas and plenty of determination. They inspire us all the time and so, this Christmas, we wanted to share some of that with you. In this 12 Days of Christmas series, we will be spotlighting a few of these brands and talking to them about their story, top ecommerce tips, and apps they like to use to help with running their businesses.
[Announcement made August 2017].
We are delighted to announce the introduction of our first UK partner AVASK Accounting & Business Consultants.AVASK and A2X have been working together since 2015. A2X has been essential in streamlining AVASK’s services, allowing their tax advisors and accountants to automatically fetch their clients’ latest Amazon settlement transactions and post summarised transactions directly to their accounting system.
“A2X is an essential part of our day-to-day operations.
A2X for Amazon, and A2X for Shopify are helping thousands of ecommerce sellers across the world automate their accounting.
In these two guides, we’ll show you how users of the QuickBooks Desktop and QuickBooks Enterprise products can use A2X to account for their Amazon sales and/or their Shopify sales:
Using A2X for Amazon with QuickBooks Desktop and QuickBooks EnterpriseUsing A2X for Shopify with QuickBooks Desktop and QuickBooks EnterpriseWhat is A2X for Amazon?
Ensuring that your accounts are reconciled, accurate and up-to-date is easier said than done for most ecommerce sellers.
It’s tricky enough for those selling only on Walmart Marketplace, but if you have a more diverse portfolio with multiple channels and potentially locations, balancing those books can be a real minefield. Unfortunately though, it is a crucial part of the business.
Automating your accounting makes good business sense. When you automate, your transactions are downloaded as settlement payments come through, which means that you can keep on top of your orders, and bank deposits with ease.
Accounting is a time-consuming necessity for all ecommerce sellers - large and small!
Automating your accounts is a great way to eliminate the need for (potentially erroneous) manual data entry. Transactions are sent automatically as soon as orders complete, tallying up in your accounting software ready for you to reconcile.
When it comes to accounting for ecommerce sellers, there are still some crucial parts missing in this tech stack. As a seller, you need certain information in order to survive and thrive, which A2X can help with.
As a business owner in the ecommerce sector, you’ll be well aware of the benefits of online market platforms. Rather than deal with the expense and the time-consuming process of building your own ecommerce platform, it makes sense to leverage ones that are already thriving. You might already be an aficionado on Amazon and Shopify, so perhaps it’s time to diversify and join the Walmart Marketplace. Or maybe you’re just starting out as an online entrepreneur, and want to plan ahead.
So you owe money to Amazon, and you know this because there’s a negative balance on your Amazon seller account.
What happens if you owe amazon money, and how do you correct it?
The good news is that an Amazon seller negative balance is usually nothing to worry about.
Table of Contents What is an Amazon seller negative balance? How to locate negative settlements in Xero How to balance your accounts by reconciling a single Amazon payment [four steps] Step 1: Find Amazon deposit Step 2: Find & match Step 3: View invoices and bills Step 4: Combine and balance Also on the blog Learn how to manage your Amazon accounting the right way
For online sellers, eBay is a little different from other ecommerce platforms. You could use eBay to get rid of old stuff around the house here and there, like a garage sale. Or, you could use it to run a multi-million dollar, profitable business.
With such scope for revenue, eBay sellers may be confused as to where they land on the tax eligibility scale. Do they need to pay, and if so, how much and to whom?
Ah, sales tax. The ultimate Pandora’s box has come for ecommerce sellers.
In 2019, US online retail sales of physical goods reached an astronomical $343 billion. By 2024, they are forecast to reach $476 billion.
Physical presence in a state used to be a parameter for tax, but times have changed. With billions of dollars floating in the digital space, governments everywhere, not just in the US, have needed to change tack.
Since its inception in 1995 (just one year after Amazon), eBay has capitalized on the obsession we have for both online shopping and selling. But for those who run a business buying and selling items on eBay, reconciling accounts can get messy at the best of times.
For eBay, all payments and purchases were previously routed via Paypal, a subsidiary of eBay. Reconciling all transactions across the two platforms was time-consuming, causing inaccuracies, challenges with dispute resolutions, and delays in funds.
If there’s any year worth celebrating early, it is 2020!
Here at A2X, we get to work with ecommerce businesses (and their bookkeepers) from such a diverse range of backgrounds. While our conversations are usually around helping these people to automate their accounting, we are often amazed by the ideas we hear about and the passion behind them. So, this Christmas, we wanted to share a little bit of that magic with you.
The Fulfilment by Amazon (FBA) program is a great way for entrepreneurs to grow an ecommerce business while minimizing their initial investment. There is no better ecommerce partner in the world than Amazon.
However, before you dive into setting up your FBA business, you need to make sure you understand how the program works and the different costs involved. Table of Contents What is FBA? Why You Should Consider FBA How Does Amazon FBA Work?
It all startedwith a broken laser pointer.
In 1995, Pierre Omidyar saw potential. The internet was still fairly new, but perhaps this giant network could be a good opportunity for commerce.
He tried it out, listing a laser pointer for $1 on his originally-named Auction Web, which was soon driven up to sell for $14.83. Perhaps there was something here. By early 1996, eBay had become a million dollarcompany. Now, at only a quarter of a century old, its market capitalization sits at around $29b.
Oh yeah, that’s right. We’re not for everyone. What? Why?! We’re excited about our customers, and what they’re working to achieve. These are people who want to focus on their businesses, and not waste their time doing things that could easily be automated. The fact is, everything we do is designed to provide you with a wonderful customer experience - something we really value. Speaking of values, other things that are important to us include innovative solutions, trusted relationships, and razor-sharp accounting accuracy.
Shopify sellers have better accounting with A2X for Shopify integration Updated October 2020
In today’s technology-driven world, there is no real excuse for poor accounting. While most businesses and Shopify sellers find it a monotonous and time-consuming chore, it’s essential for tracking, managing and optimizing the growth of your business.
Say goodbye to spreadsheets and invest in user-friendly and effective accounting software.Having a robust system in place will help you manage your cash flow and taxes– simplifying your finances.
You spoke and we listened.
Over the last few years, we have been asked many times if A2X can be used to connect eBay with your accounting system.
And while there is a manual workaround that can be put in place to connect your accounts, we haven’t offered a dedicated eBay accounting integration- until now.
Introducing A2X for eBay: beta programme Today, we are proud to announce the launch of our A2X for eBaybeta programme in advance of the official rollout later this year.
Updated October 2020.
Like all business owners, Amazon marketplace sellers make dozens of decisions every day. Some are minor, while others will affect the business for years to come.
One significant decision is selecting an accounting system, or for those operating in the cloud, choosing between Xero and QuickBooks Online. These are the most widely-used and best-known cloud-based accounting systems most Amazon sellers will go for.
Which is better for A2X Accounting Automation – QuickBooks Online or Xero?
Sales tax is one of the greatest challengesfor ecommerce sellers in the US. Why? Because compliance requirements differ across the states, and the consequences of getting it wrong can be quite significant.
In 2018, the South Dakota vs. Wayfair Inc.ruling changed the tax landscape for remote sellers for good. With this decision came a wave of state-specific rules and definitions of tax nexus, leaving many sellers - small and large - confused about their obligations.
Today is an exciting day for everyone here at A2X. That’s because today, we are thrilled to announce the launch of A2X for Walmart.
While Walmart has traditionally been a big box retailer operating megastores throughout the world, they recently entered the online shopping industry in a big way - by creating the Walmart Marketplaceand acquiring a number of smaller online shopping platforms to fuel their growth.
If you’re selling on Walmart, or planning to sign up in the near future, then you’ll be pleased to know that A2X for Walmart is here to take the hassle out of ecommerce accounting.
In Partnership with Shopify, Xero, A2X & ClearCloud Accounting
In 2020 the UK was hit with a twofold setback of events which directly affected UK e-commerce retailers.
Firstly, Britain leaving the European Union means a change in legislation leaving uncertainty on where businesses will lie in the new parameters. More recently COVID-19 struck and caused chaos to the economy and global markets, to which the full extent is yet to be revealed.
This is a guest post from our partners at Bean Ninjas.
Did you know that more than 50% of Amazon’s $280 billion in revenuecomes from FBA sellers?
The competition for sales has only grown with FBA sellers doing anything they can to get an edge. In some cases, this includes unethical or downright criminal practices to get more sales or hurt their competition.So, the last thing you want to do is create self-inflicted problems.
As a busy retail shop owner, your time is spread across a wide range of activities every week. Whether it’s looking after customers, managing staff or setting up your systems for success, the last thing you want to do is create unnecessary work.
And while simplicity is a virtue in any business, the retail landscape has grown much more complex thanks to the prominence of the internet. Customers expect us to be present on social media, have an online store, and provide a range of shopping options to suit their preferences.
It’s official! A2X for eBay is here, and we are excited to be a part of this ecommerce giant’s journey.
Now, sellers on eBay’s global marketplaces can benefit from A2X’s award-winning ecommerce accounting offering and integrate it directly with Managed Payments and Xero or QuickBooks.
And that global marketplace is rather large:
Any ecommerce seller will know that bookkeeping is an essential, albeit time-consuming, part of running their business.
A super simple guide for new e-commerce store owners The best way to improve your Shopify store is to learn as much as you can about your customers – like how they find and browse your store. For traditional retail stores, that information is relatively easy to come by – you can simply ask your customers in person. But for e-commerce store owners who never come face-to-face with their customers, this can be a challenge.
Calling all Shopify Merchants in the San Francisco Bay area.
On Thursday, March 19th, Shopify has organised a day dedicated entirely to help Shopify Merchants with their accounting. Shopify accounting office hours will be held from 10 am - 4.00 pm and a Shopify accounting meetup will take place from 6.00 pm. Both events will be in the Shopify Merchant Lounge.
Shopify Accounting Office Hours
Join accounting and tax experts Wayne Richard and Jermey Allen who are available for one on one appointments in the Shopify Merchant Lounge.
As an ecommerce marketplace seller, you probably know you should be collecting sales tax.
Items sold and distributed within the US and Canada are usually subject to sales tax. That part’s straightforward, but how much to collect is a different story altogether. How Amazon calculates sales tax is also a little complicated.
In the US, each state has its own state or local tax rate. Some have both. In Canada, you pay a federal-level tax called GST, then depending on where the sale was made, you’ll also pay varying levels of local tax.
Sales taxis a fact of life for all ecommerce sellers.
If you’re not currently collecting it, you’re probably not meeting your tax obligations. Every product sold in the US and Canada (whether you’re a local or not), will likely be liable for sales tax.
The real question is not whether you should be paying, but how much. And this is where things get tricky.
Excluding the N.O.M.A.D. states, every US state has a tax rate, and some additional jurisdictions with their own applicable rates too.
The A2X team is currently spread out far and wide for a very busy end of year. Whether you are in London, Singapore or Toronto, there will be an event nearby. Giving you plenty of opportunity to meet the team and check out firsthand the new Shopify integration and the new VAT features for Amazon accounting with A2X. A2X in London After a successful QuickBooks Connect 2019 in San Jose.
As a Shopify seller, having a good set-up is crucial for business growth and maintenance.
If you’re an ecommerce seller on the hunt for the perfect accounting system, this article will explore why Xero and QuickBooks with A2X for Shopify are the best solutions on the market.
QuickBooks Online See pricing plans.
Intuitive QuickBooks Onlineis rated by many as the gold standard software for small business accounting – and they wouldn’t be wrong.
Thanks to your incredible support over the years, A2X has been named a finalist in the 2019 Xero Awards in the Emerging App of the Year category for the release of our Shopify accounting tool, A2X for Shopify.The Xero Awards 2019 are all about recognising and celebrating diverse partner firms, apps and small businesses.
Basically, it celebrates those who are doing extraordinary things in the life of their businesses.
A2X Presents “Opportunities in Ecommerce & Best Practices for Accountants & Bookkeepers” Register here for an exclusive webinar this Thursday at 11 am AESTIf you are an accountant, bookkeeper or cloud integrator, this webinar is for you! Register now to hear from experts on the opportunities in ecommerce and best practices for connecting and working with Shopify clients.
Shopify will be discussing the opportunities for you in ecommerce and tips and tricks you can use to build your ecommerce client base.
As a seller, you’ll know the beauty of ecommerce is that you can run your business and sell your products from anywhere, to anyone in the world.
While that creates accessibility and flexibility, it doesn’t necessarily make business any easier.
Automating your store functions is the best way to streamline your ecommerce business, removing the manual work, so you can concentrate on more valuable tasks; the ones necessary to growing your business.
A2X, the worlds leading Shopifyand Amazon accounting connectorhas been named by Xero as it’s App Partner of the Month for September 2019.
A2X has been helping thousands of you across the world to automate, streamline and accurately account for all of your, or your client’s e-commerce sales for over 5 years now. The launch of our new product, A2X for Shopify is now helping Shopify stores all across the globe to accurately account for their Shopify sales inside of Xero.
The A2X team are very excited to be attending Xerocon with the main focus being the recently launched, A2X for Shopify! This week, on the 4th and 5th of September, A2X is heading along to Xerocon at the Brisbane Convention & Exhibition Centre. As well as the usual Xerocon excitement, we have a jam-packed schedule planned for you. If you’re an accountant with Shopify clients or you are interested in the e-commerce accounting niche, come by the A2X booth with all your pressing questions.
The QB ‘Appy Hour is a fun monthly webinar series dedicated to the QuickBooks Apps ecosystem. This month, experts Heather Satterley and Liz Scott will be discussing the latest Shopify and QuickBooks integration, A2X for Shopify. Register for the QB ‘Appy Hour,Aug 27, 2019 04:00 PM EST This Webinar is a must attend for accountants who have clients using the Shopify platform or those wanting to learn about the opportunities around Shopify accounting.
How A2X has been a key player in Catching Clouds growth Ecommerce accounting firm, Catching Clouds, based in the US, works with established ecommerce sellers producing a turnover of between one and $50 million. They’re considered leaders in the mid-to-high-range seller market because of their focus on high-quality tech to help their clients automate business operations.
Co-founder Scott Scharf has worked hard to create a well-known, high-tech brand - working closely with other leading tech brands like Xero and Gusto.
We are excited to welcome Financly Bookkeeping Solutionsas A2X’s first Canadian Partner. Teresa Slack is one of the two owners and founders of Financly Bookkeeping Solutions - a cloud-based, virtual bookkeeping service for modern businesses that need a dynamic accounting team.
With over 30 years of experience, she is not only skilled at financial record keeping and reporting, but also setting up systems, business management, sales and marketing, forecasting and much more.
The past year has been unprecedented in terms of sales tax law changes that impact online sellers.
The whirlwind began after the U.S. Supreme Court handed down its decision in South Dakota v. Wayfair in June 2018. The Wayfair decision is all about nexus – the level of connection between your business and the state that obligates you to register and collect sales tax.
The Supreme Court ruled that physical presence is no longer the main requirement for creating nexus, that it can also be created when a seller’s sales into a state exceed certain economic thresholds.
This June, 25th - 28th, A2X is joining forces with Xero and heading along to the Internet Retailer Conference and Exhibition (IRCE) in Chicago. Why IRCE? IRCEis the largest e-commerce conference globally. This conference is a must attend for all e-commerce sellers. IRCE offers businesses the solutions they need to stay ahead in the dynamic e-commerce sector. What is different? A2X+Xero will be hosting an e-commerce accounting expert Q&A at the booth, with scheduled appearances from top e-commerce accounting partners, Co-Founder Catching Clouds, Scott Scharf, and Co-Founder Xendoo, Lil Roberts.
If you’re getting serious about your Amazon ecommerce business, you’ll already have yourself dedicated cloud-based accounting software, like Xero or QuickBooks. Hopefully, you’ll also have integrated A2X so you have timely, usable sales data and reporting at your fingertips. The next thing you need? Sales-tax software.
The cold hard truth is that if you’re selling via Amazon FBA, at some point you’re going to be paying sales tax– and that’s when your accounting can get complicated, especially if you’re selling in the US.
An Interview with the Owner of a US-Based Manufacturer and Online Retailer with Karen Brady Part One here.
This company uses both CNC components produced in the US, and imported components designed in the US and manufactured in Chinese factories.
The final retail products are assembled in the US and sold on from their website. Following on from the interview with ExportX’s Paul Grey, I continue my investigation into the mechanics of import/export and how the US-China Trade Warshave impacted his and other companies.
An Interview with Paul Grey of ExportX [Part One] with Karen Brady Part Two here.ExportXis an international ecommerce business representing more than 50 brands of products from Australia and New Zealand, selling with Amazon and FBA since 2008 in the USA, Europe, Asia and Australia.
ExportX has been importing goods to the USA for more than 10 years and has long experience with customs clearance and tariffs in dozens of product categories.
The Amazon 1099k (or sometimes just called the 1099 or “ten-ninety-nine”) is the one report we get asked about so often at A2X; ‘How do I match the 1099K to my sales, how do I know where Amazon gets their numbers, what does this all mean and why does it never easily balances back to your business management accounting?’.
Now, while we will cover off on all those questions in this blog and the supporting material, this task is something that is really not necessary.
Specialist e-commerce accountant, bookskeepfounder Cyndi Thomason’s new book, “Profit First for E-commerce Sellers” has just been published and is now available on Amazonand Barnes & Noble. ‘Profit First’ is a cashflow management methodology for small businesses created by Mike Michalowicz. Cyndi Thomason has taken the core concepts of the Profit First methodology and customised them to address the specific needs of the e-commerce business. Cyndi is the guru in applying Profit First to e-commerce businesses to help them achieve true profitability and business sustainability.
Still using a spreadsheet for your Amazon accounting?
You could be making a huge mistake. One that will cost you far more than the money you might save not using accounting software…
In this guide about using spreadsheets vs. A2X for your accounting:
Table of Contents Accounting for Amazon Sellers Accounting Before A2X Pros and cons of spreadsheet accounting Accounting with A2X Pros and cons of A2X for Amazon Step into the Future of Ecommerce Accounting with A2X Also on the blog Want to feel completely confident in your ecommerce bookkeeping?
There are many fees involved in selling on Amazon.
Amazon charges you a fee for just about everything it does within the sale and delivery process. However, most sellers find that these fees are well worth it and allow them to focus more on scaling their business and less on the fulfilment side.
Fulfilment and processing of orders is really what takes up a lot of manual time in a physical products ecommerce business.
Reading time 5 minutes As of writing this blog, Brexit is just over three months away and there is so much confusion with the politics, it is really hard to understand what it all means to one’s business. As I am in the UK this week, it has been the perfect opportunity to “take-the-pulse” of the moment and break it down into the practical implications for our Amazon Sellers. Disclaimer: This blog is given as general information and understanding of the subject and should not be used as a substitute for competent advice.
The QB ‘Appy Hour is a fun monthly webinar series dedicated to the QuickBooks Apps ecosystem. This month, experts Heather Satterley and Liz Scott feature A2X in their roundup of essential apps for e-commerce. Tune in on December 11th 4.00 – 5.00pm EST. This Webinar is a must attend for accountants who have clients selling on Amazon or if you want to learn about the opportunities around Amazon accounting. Members of the A2X team will be running through a short presentation of A2X and a full demonstration connecting Amazon and QuickBooks.
A2X is used by Firm of the Futurefinalist, Reconciled, for their Amazon accounting automation. Intuit has published the finalist videos - A2X gets a special mention as a tool that helps Reconciled with Amazon accounting. We’re thrilled to be in such great company - thanks for the shout out, Reconciled! Check out the video here:
This November A2X will be at the Xero Roadshow events in Singapore and Hong Kong. If you’re an Amazon seller or an accountant selling with FBA on Amazon.com, or any Amazon market globally, we’d love to talk.
Where to meet us Hong Kong - Tuesday 20 November 2018
Sky100 Observation Deck International Commerce Centre (ICC), 1 Austin Rd W, Yau Ma Tei, Hong Kong
Singapore - Friday 23 November 2018
You’ve asked, and we’ve listened.
Today, we are pleased to announce that A2X will be adding support for QuickBooks Desktop into our core A2X product!
With more than 2.8 million subscribers, Intuit’s QuickBooks product is the largest self-serving accounting system in the world by users, and QuickBooks Desktop makes up a large chunk of that.
What Does This Mean for Users? Well if you’re a QuickBooks Desktop user, that means you can export your Amazon settlements from A2X, and then automatically import them into QuickBooks Desktop.
Xero recently featured A2X showcasing innovation and success on the Xero platform. Xero describes A2X as “clever software [that] makes Amazon accounting easy” You can read the full article over on the Xero blog.
It’s a reality. Our world is becoming more automated every single day.
Integrations connect different apps, plugins are able to handle large amounts of information with ease, and businesses are turning to automation for their workflows and processesto scale up with speed and resilience.
At first glance, automation might seem out of reach for many Amazon sellers. What was once the domain of large organizations with deep pockets is now accessible to anyone with a laptop and a ‘can do’ attitude.
MTD, or Making Tax Digital, impacts all aspects of the way Amazon sellers in the UK account for VAT to the HMRC. Despite the initial and rather urgent push for sellers to start their transition to compliant digital systems early, many delayed. This means that many UK Amazon sellers are still trying to catch up and understand this shift to MTD. When I first planned to write this blog, I never imagined that I’d actually get to be in the UK as it approached this transition.
This article is has been written with our good friends at OD Accountantsin the UK. It discusses the growth of Amazon FBA in the UK and how OD Accountants have been working though the challenges of Amazon accounting with the help of A2X. During recent years, online marketplaces have transformed the way we shop. Amazon brings together sellers, merchants and businesses in almost every industry into a highly competitive marketplace. This level of competition helps to keep prices down and offer consumers more choice.
This article is a guest post from our good friends at MuseMinded. They have teamed up with The Tax Butler to offer a free sales tax starter kit for US-based Amazon sellers.
This is the first blog in a three-part series which looks at the basics of sales tax for ecommerce sellers and where you can find help. The next two parts cover:
Sales tax strategies for Amazon FBA sellers in the United States.
A few weeks ago, we had a chat with Tyler Jefcoat about starting, growing and selling Amazon FBA businesses. Tyler is the co-founder of Seller Accountant- an eCommerce bookkeeping company dedicated to supporting Amazon sellers. Unlike traditional accounting firms, the team at Seller Accountant take a holistic approach towards supporting their clients by advising them from an entrepreneurial standpoint and considering a much wider range of factors than simply financial metrics.
Sales tax for ecommerce sellers is relatively new and continually evolving.
When bricks-and-mortar stores were the only retailers, knowing where to pay your taxes and to whom was straight forward. You had a physical location which gave you “nexus” in a particular state; a link strong enough that you needed to pay tax, and that was pretty much the end of the story.
With millions of dollars moving into the cloud space and no physical locations to pin them to, governments faced two problems:
Our trip to Xerocon Brisbane next month just got a little more exciting with the news that A2X has been shortlisted as an Award finalist in the category of: ‘Industry specific app partner’ As an app partner, A2X solves a very specific problem for Amazon sellers and is recommended by Accountants and bookkeepers as a necessary tool to automate the reconciliation of settlements paid by Amazon to its Sellers. We’re looking forward to being in good company on September 4th at the awards event.
In the latest release of A2X you’ll notice a few changes that we’ve made to cost management, cost of goods sold and FBA inventory. We’ve been hearing your feedback, so thank you for the input and suggestions, we hope you like the new tools.
Cost of goods sold (COGS) is now integrated into the A2X free trial, so you can set up and preview cost of goods before choosing your plan.
We are back from another fabulous Xerocon. A complete contrast to the snow Ashley, Paul and Rachel had in Austin, Texas. Atlanta put on a fine show for us weather wise and in many other aspects as well. We sampled the many delights of southern cuisine, managed to spend some time outside the conference visiting the cities many attractions such as the CNN building, the Center For Civil and Human Rightsand of course we could not pass up the opportunity to visit the World of Coca-Cola.
Next week A2X will be at the Boost with FBA eventin New Orleans, bringing together sellers from across the US for “a daylong focus on seller success”. If you have questions about your Amazon seller accounting or finances or want some help understanding how to get the most from your accounting system as an Amazon business, A2X can help. If you are in New Orleans for the event, get in touch: contact@a2xaccounting.
Next week A2X will be exhibiting at Scaling New Heights in AtlantaJune 17,18, 19 and 20 at Georgia World Congress Center (GWCC). You can find us at the Intuit booth, as part of the 2017 App Showdown showcase. If you’re an A2X user or interested in the Amazon accounting niche, come and find us for a chat about what A2X can do to help get your Amazon seller client’s books in order.
This article was written and published in 2018. Ecommerce tax regulations are constantly changing and location-dependent, so for the most up-to-date information, always consult your accountant or the official government websites for your state. We also have a complete guide on collecting Amazon sales tax herewith appropriate links and advice.
As more and more international businesses start to sell through Amazon, understanding the ins and outs of US tax law becomes increasingly important.
Amazon just launched the Marketplace Appstore, which has been developed specifically with marketplace sellers in mind. The Appstore will function as a central interface for merchants to browse and discover plugins and software integrations that interact directly with their Seller Central accounts. We’re excited to announce that A2X is listed on the Appstore, under the category ‘Accounting and Tax Remittance’. A2X is automated accounting for Amazon Marketplace Sales, fees, cost of goods sold, and FBA inventory.
This post was written and published in 2018. Tax obligations for ecommerce sellers is constantly evolving, so for the most up-to-date information on tax legislation, please consult the official governing body websites for your location. Our blog How-To Guide: Collecting Amazon Sales Taxis also a good source of additional information and relevant sources.
Like many states, Pennsylvania is in the process of introducing new tax legislation aimed at ecommerce retailers.
If you’re an Amazon seller with sales in the state of Washington, you may have noticed some changes to the way your sales tax appears in your A2Xreports. This is the result of the new ‘Marketplace Facilitator Tax’ that was introduced in January this year. While this specific tax only applies to sales in Washington State, other states are introducing similar taxes of their own, which will affect Amazon sellers in the future.
Acuityis a US-based accounting firm that specialises in bookkeeping and accounting for small businesses.
They are tech leaders in the accounting field, and are always looking for ways to make their work more efficient and save money for clients.
A2Xdoes just that, by helping them to automate some complex processes, get accurate numbers, and speed up their results. After implementing A2X and seeing the difference it made, the team at Acuityrecommends it to all their Amazon clients.
The Prosper Showis an annual conference for Amazon marketplace sellers, and the ecosystem of businesses and applications that serve them. During the 2018 Prosper Show held in Las Vegas on March 13-14, 2018, A2X hosted a live interview panel with four leading Amazon marketplace accountants:
Scott Scharf from Catching Clouds Melanie Shabangu from Avask Accounting Jeremiah Kovacs from MuseMinded Cyndi Thomason from Bookskeep During the live panel, audience members had the chance to ask the Amazon accounting experts a range of questions, prompting discussions about the future of Amazon accounting.
bookskeepis a US-based bookkeeping firm that specialises in ecommerce businesses. They’ve been around since 2014, and have been an A2X partner since 2017. bookskeep has a high number of clients using QuickBooks Online, although they’re seeing an increasing number of Xero users too. Recently, the bookskeep team helped a client who needed to rebuild their financial records in order to sell their business – and they realised the true value of A2X.
If you’re an international seller wanting to break into the US market, an ecommerce giant like Amazon might appear to be a straightforward solution. With a 45% US ecommerce market share, a little bit of time spent creating an online store on Amazon and managing fulfilment certainly looks worth the investment. What many international sellers don’t realise, however, is that the story doesn’t end (or even begin) there. State and federal tax laws come into play, as well as banking regulations and business registrations, all of which need to be organised before any selling ought to take place.
Our previous Amazon Accounting Meetup in Austin, TX at the previous Xerocon was a huge success! To follow suit we’re bringing another one, this time in conjunction with our sponsor Xeroto Las Vegas, NV for the PROSPER Showon March 12-14 2018. If you’re in town for the PROSPER Show, please do join us at Gordon Biersch, LV for an informal get together for a drink and a chat about all things Amazon marketplace accounting!
PROSPER showis next week - the place to be for Amazon sellers, A2X will be there and we’re hosting an Amazon Accounting meetup, so if you’re going to PROSPER, we can’t wait to meet you there. This year the show is big, with over 100 sponsors, there’s an intimidating wall of logos. We hadn’t heard of many of these companies and didn’t know what they all do for Amazon sellers, so we thought it might be helpful to provide a quick round-up of each company, what they do and where to find them online.
Financing inventory can be intimidating and often stressful even for bigger sellers. But, it doesn’t have to be. When you’re short on much-needed inventory, it’s easy to make rash decisions when it comes to financing it. The best thing you can do is take a step back, do your research and consider your options.
1. Money in the Bank If you have enough personal savings to fund your holiday inventory, you can pay for your next purchase order or closeout sale (in the case of retail arbitrage) interest free.
Palo Alto - Las Vegas - Atlanta. It’s a new season of events for the A2X team. This week we’ve been on the Intuit stand at Startup Grindin Palo Alto exhibiting as part of Intuit’s sponsorship and talking to other entrepreneurs and investors in Silicon Valley’s hub for startup networking. Next month A2X will be with the Amazon seller community exhibiting at the Prosper Showin Las Vegas over March 12-14. We are exhibiting together with our partners and good friends at Catching Clouds on Booth #145.
It’s 2018 and if you caughtthe news last year, you’ll have seen that Amazon is starting to charge and collect Sales Tax on behalf of all sellers in the state of Washington. You’ll start to notice a few new transactions in A2X: MarketplaceFacilitatorTax-Shipping and MarketplaceFacilitatorTax-Principal, these will offset and ItemPrice Tax and Shipping Tax that Amazon has charged the customer, so that it results in a total of 0 to your overall settlement.
Amazon Australia launched Amazon.com.auat the start of December and hit, what has been reported as, a record first day of sales in any Amazon marketplace.
A2X is excited to report that we are able to support Amazon Australia sellers to thrive on the new platform and nail their ecommerce accounting.
If you’re an Australian business selling on Amazon in Australia, or an international firm opening an Amazon.com.auselling account, A2X will give you the reliable, accurate accounting of sales and fees you need to reconcile your Amazon settlements in Xero and QuickBooks Online.
We’re back from a fantastic Xerocon in Austin I wanted to capture a few of the highlights now that we’ve thawed out. Who’d have expected snow in Austin, not the locals apparently! Xerocon is always a great opportunity to meet up with our partners and friends in the industry and Xerocon USA is the epicenter for us with Amazon being such a massive part of ecommerce in the US, and specialist ecommerce accounting being a fast growing and important market for accountants.
Our good buddies at Catching Cloudshave created a masterpiece. Something Amazon sellers and their accountants will love. It is an end to end Amazon accounting coursethat outlines the hows and whys of Amazon accounting. It is the course for you if you’re using Xero or QuickBooks Online to track Amazon sales, either in the US or internationally.
Tips and Challenges There are many aspects of the course I respect but the biggest one has to be that Patti and Scott have learned by doing, and often the hard way, and they share these experiences throughout the course.
Quick update on the Amazon Accounting Meetupthis week in Austin, we’ve had over 30 RSVP’s and have now reserved space in the main bar at Brew & Brew. The bar is a short walk from the conference venue, so we’ll see you there!
Xerocon Austinis next week, and it’s a great opportunity for companies, firms and sellers interested in Amazon accounting to Meetup and connect with each other. Scott Scharf, from Catching Cloudsand I are organizing a meetupwhere Amazon accountants and sellers can get together for a drink and a chat about all things Amazon and accounting. If you are in town for Xerocon, or a local interested in Amazon, come talk the tricky stuff with Amazon experts: marketplaces, international multicurrency selling, sales tax, VAT, FBA, inventory, fees, charges and cashflow.
This December the team at A2Xwill be saddling up for Xerocon Austin. This will be our second Xerocon as an exhibitor and we’re very excited to meet with clients, partners and accounting firms who have clients selling on Amazon. We have been talking to the team at Xero about what we love about Xerocon’s and why we go! We realised that a huge part of these events was the discussions with, and feedback from our clients and partners.
Time gained with A2X will be crucial as Amazon launches in Australia.
Kerin* runs a highly successful online business. She had grand growth ideas in the pipeline, but not enough time to set them in motion.
A2X is the automated Amazon marketplace accounting service that Kerin used to win back 20 hours a month and the opportunity to grow her business – fast.
Kerin and her husband have been running their own very successful online business since 2012, selling world-wide from their base in Australia.
Last week Ed Rosenberg interviewed A2X partner firm AVASKabout VAT compliance and enforcement for Amazon Sellers. James and Angelos covered how VAT compliance is being enforced for Amazon Sellers and the penalties faced if a business ignores compliance. VAT is complex, with some very serious implications for your business, check out the full interview below to get a sense for the challenges and importance of the VAT accounting for Amazon sales.
Xerocon Londonstarts in just over a week and while it’ll be our first time exhibiting at Xerocon, we know there’s more in store for us than just introductions at the booth. We’ve attended Xerocon as delegates before, so we know there is something quite distinct about Xero events with a strong vibe of openness encouraging everyone to share and contribute to the community. We are looking forward to conversations with Accountants in the UK because we are interested in hearing how the role of traditional accounting is evolving with cloud services.
Eagle & Fox had big plans for their business, but their accounting was holding them back.
_Here’s how A2X helped the Amazon retailers simplify their VAT reporting, speed up their accounting and grow their business. _
Fergus and Emma Macdonald run Eagle & Fox, a creative online retailer based in the old sea port of Leith, Scotland. They merged their two brands, Kilt Societyand The Tartan Blanket Co, into one dream company – a smart and efficient move.
Here at A2X we feel privileged to have Cyndi Thomason from bookskeepjoin our group of North American Partners. Two years ago bookskeep started working with their first Amazon seller client and quickly began partnering with more Amazon sellers every month. Cyndi quickly realized something: Many Amazon pros were pursuing the same flexible lifestyle she was! One of the primary goals at bookskeep is to free up their clients so they can enjoy their life and build a business.
(Updated December 2020).
In 2017, we received word from our friends at the PROSPER Showthat Florida had joined the MTC Sales Tax Amnesty program. The amnesty was geared towards online sellers with the idea being that they could negotiate to be forgiven some or all of their back taxes, as well as any applicable interest and penalties. Sellers had to meet certain eligibility criteria and apply for the amnesty between the 17th of August 2017, to the 17th of October 2017.
A2X and Catching Clouds - A Great Partnership. I’m pleased to announce the launch of our A2X partner program, and to introduce the first official A2X partner, Catching Cloudsof Denver, Colorado, Catching Cloudsprovides outsourced ecommerce accounting services for online businesses. The Catching Clouds team are experts in Amazon ecommerce businesses, the technology, and the accounting they need to manage their businesses. Owners of Catching Clouds, Patti and Scott Scharf, have been working with the A2X team since January 2014.
We received word from our friends at the PROSPER Showthat the MTC (Multi-State Tax Commission) has announced a Sales Tax Amnesty program for August 17th to October 17th 2017. This is huge news for for Amazon sellers on Amazon.com, you can submit a Voluntary Disclosure to get registered for tax collection immediately, and importantly avoid back taxes, interest and penalties.
What States are participating in the program? The program covers these states:
If you’re an Amazon marketplace merchant, you’ll know that selling through the platform isn’t all smooth sailing. In fact, when it comes to balancing your books, there are some serious headaches to deal with.
Sales data from Seller Central is delivered in an overly complicated format, which doesn’t mesh easily with most accounting systems. This means reconciling sales numbers with the actual amounts that land in your bank account can seem nearly impossible, and cost you hours or days every month.
Why e-commerce accountants love A2X. The apparent simplicity of selling through the Amazon marketplace can be deceptive. Although the Amazon Seller Central portal provides details of each transaction in reports and file downloads, as businesses grow and sales increase, accountants and sellers start to find these reports unhelpful – to say the least. Amazon’s sales reports don’t provide a breakdown of sales tax, don’t date sales accurately month by month for accrual accounting, can’t be exported to accounting software without huge issues, and include extremely confusing fees and charges.
Prosper Show is starting in just over a week and we’ve been poring over the agendathese last few days trying to decide what our top picks for sessions are. It’s tough to decide as the calibre of speakers at the event is high, but we’ve narrowed our list to our top-5. Presented in no particular order, the top 5 speakers/presentations we’re most excited to see at Prosper next week.
Michael Fleming - Peisner Johnson & CompanySales Tax.
We’ve just released a new look signup for A2X, its now easier to get logged in with Google and connect your Amazon and Xero accounting system. You’ll find detailed steps to get your Amazon accounting imported into Xero over on our new look A2X support center. Once connected with Google, the new look dashboard will make it easier to connect to Amazon, and your accounting system. And… you may also notice we’re working on some pretty big changes around here, a whole new accounting system integration is coming soon, QuickBooks.
In this post we want to cover two often confusing transactions you will see in your Amazon settlement files that A2X imports. The first is the Current Reserve Amount and the second is the Previous Reserve Amount Balance. Firstly, a bit of background to these transactions. Why does Amazon withhold payment? Sometimes Amazon withholds some or all of your settlement payment for various reasons. Some examples of why we have seen Amazon do this to sellers: you’re a new seller with no history, your credit card on file with Amazon is expired, or there’s a bank account validation problem in your seller account.
Specific Amazon codes in Xero The other day I was going through my amazon seller fees for the month. I recently launched my first effective Amazon promotion and wanted to see what it looked like in my accounting software. Mostly, I wanted an overview of how much I have given away in order to create the recent promotion related sales. I use A2X and when I did my initial mapping “Amazon Promotion” was not mapped.
Amazon Fee Accounting Basics After taking the time to break down what Amazon’s sales and FBA feesare, the next logical move is to account for them in your preferred accounting software. This way when you look at reports like your Cash Summary and PNL (profit and loss) the Amazon fee and Amazon income portion is easy to spot, understand, and interpret. Setting up and coding your Amazon incoming revenue and outgoing expenses is the sort of thing you really only have to do once.
If you use Amazon’s FBA (Fulfilment by Amazon) service, you’ve probably seen a few extra FBA fees pop up on your statements. In this article, we’ll explain what those fees mean (in real life), and how to record them in your books. Find our updated fees guides for 2021 here:
Amazon Seller Fees Amazon FBA Fees Table of Contents What is Fulfilment by Amazon? Understanding FBA Transaction Fees FBA Order Handling Fee Variable Closing Fee: BMVD or ‘Media’ Items Refund Administration Fee FBA Pick and Pack Fee FBA Weight Handling Fee Referral Fee On Item Price FBA Storage Fee Long Term Storage Fee Amazon FBA Fees Calculator Accounting for FBA Transaction Fees Problems Amazon FBA Sellers Have With Accounting Cash vs.
A2X software offers different options for the grouping of Sales, Refunds, Promotions, Shipping and Gift Wrap charges. We also have a Grouping by Product Type option. Grouping by SKU is fairly obvious; grouping by product type is a little more complicated.
In this article, we’re going to show you how grouping by product type works. We’d like to say upfront, product types are generally an extra-for-experts setting that not all users are going to want or need.
In this post we’re going to talk about FBA inventory and Xero. You may have recently seen Xero announced the ability to track inventory items directly within Xero. A2X has limited ability to take advantage of these new features by using the group by product invoice setting. One of our users very kindly made a screencast showing how you can set up the group by product option in A2X, Amazon, and Xero to take advantage of the new inventory features.
A2X is now even more convenient for you to use. A2X/QuickBooks users can now safely sign in with Intuit.
A button that you will see on the A2X ‘Sign in’ and ‘Sign up’ screens labelled ‘Sign in with Intuit’ will allow you to sign in with your Intuit login details.
Here is how it is done:
Step 1 -Select ‘Sign in with Intuit’ After pressing this button, what you see next will depend on whether you are already logged into QuickBooks in your browser, and whether you have already granted A2X limited access to your basic QuickBooks details.
How Allan Fefergrad and the team at AF Accounting uses A2X for Amazon seller clients Located nearby Griffintown, Montreal, AF Accounting is a contemporary accounting firm catered towards professionals, small and medium-sized businesses. Through adopting modern accounting technologies, they are able to offer a complete suite of accounting expertise in the most efficient manner possible.
The firm was founded in 2008 by Allan Fefergrad, CPA, CGA. He has several years of experience in general accounting, taxes and finance.
Accurate ecommerce accounting without the fuss
for Shopify, Amazon, Walmart, eBay and Etsy businesses.