We receive a lot of inquiries from our clients or potential clients about accounting tips for Amazon sellers. How to make accounting and financial activities more efficient and cost-effective for the business. One of the most common questions we receive from clients are, “how to make everything simple?” or “why is everything so complicated?”. Dealing with multiple e-commerce sellers, we have noticed a few common problems that most e-commerce or any online retailers face on a regular basis. We will try to highlight those problems and provide possible suggestions on how to overcome those issues.
The boom of coronavirus-led online sales has created thousands of global entrepreneurs over the past two years. The emergence of e-commerce has brought enormous opportunities to operate your business beyond any region or border. You can run your business from anywhere in the world with a mobile phone as long as you have access to the internet. With Amazon being the biggest retailer in the world, almost 50% of Amazon sales are from amazon FBA sellers.
Selling on Amazon is becoming very competitive and complicated. The number of Amazon FBA sellers are on the rise from the beginning of the COVID-19 pandemic. We receive enormous numbers of accounting inquiries from Amazon sellers from Brazil, India, Pakistan, China and other parts of the world. Based on our analysis from our clients’ accounting, we can conclude, the profit margin is declining due to high level of competition among the amazon sellers. Some of our clients are making losses, although, we recommend them to use use junglescout or to use free Google Trend before making any bulk purchases.
