Amazon is a massive marketplace, and with millions of transactions occurring daily, businesses need proper Amazon seller accounting. If you’re a business that uses the platform, managing your accounting can be challenging. It’s critical to keep track of every transaction and ensure that you’re complying with Amazon’s policies to avoid complications.
To be fair, there are quite a few ways to get things wrong, but some mistakes are worse than others. So, let’s discuss the most common accounting pitfalls that Amazon sellers make and how to avoid them.
1. Neglecting The Right Software
Neglecting software that accurately records all sales, monthly accounting, and inventory can lead to errors in tracking and reconciling assets. The good news is, there is a wide range of accounting software solutions that integrate with the platform.
2. Leaving Careless Gaps
Gaps in your accounting can lead to significant issues down the line. Ensure that you record all expenses, sales, and refunds accurately. If you can’t, having an Amazon seller accountant might help.
3. Not Having Itemized Price Lists
Amazon’s commission structure is complex, and it can be challenging to determine your exact profit margins. To avoid this, create itemized price lists for each of your products, including all associated fees and expenses.
4. Not Keeping Up With Complaints
Practically speaking, as a seller, you will receive complaints and returns. However, failing to respond promptly to these complaints is what damages your reputation and leads to negative feedback. Respond promptly to all complaints and returns, and work to resolve any issues quickly.
5. Not Verifying All Transactions
Ensure that you verify all transactions, including payments and refunds, to avoid discrepancies in your accounting. It’s essential to monitor your account daily to ensure that all transactions are accurate.
6. Arbitrage Violations
Arbitrage violations occur when a seller purchases a product from one marketplace and then resells it on Amazon. While this practice is not illegal, it can violate Amazon’s policies. Ensure that you’re complying with Amazon’s policies and are transparent about where you’re sourcing your products.
7. Misusing Seller Central Features
Using unauthorized or unapproved features on your listing pages can lead to account suspensions or even a complete ban from Amazon. Ensure that you’re using approved features.
Conclusion
Amazon seller accounting can be complicated, but avoiding these essential mistakes can save you time, money, and headaches. If you’re new to all this, make sure to take your time to read the necessary agreements and policies. By following these guidelines, you’ll be on the right track to a successful Amazon selling career.
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