Guest contribution • 30.05.2023

If you use A for Amazon, you have to adapt B – accounting

Accounting software for Amazon retailers – is it necessary?

More and more customers are shopping online, so more and more retailers are offering their goods on e-commerce platforms - above all Amazon. Because the global mail order company promises an enormous range and simple sales. However, bookkeeping poses some pitfalls for retailers. Without software designed for trading via Amazon, companies threaten to sink into billing chaos. The choice of accounting software needs to be planned thoroughly.

Accounting software is open on a laptop
Source: BuchhaltungsButler GmbH

Online shopping is popular with customers, and sales figures have been increasing for years. Within just ten years, online retail was able to more than triple its sales and to record a real increase in sales of 221.7 percent. Therefore, it is no wonder that more and more retailers are jumping on the e-commerce bandwagon and selling their products online. Not only are their own online shops popular, but also online marketplaces such as Amazon. The shipping giant is by far the number one in the ranking of B2C online shops with an annual turnover of almost 16 million euros. Opening a retailer account on this platform is extremely easy. After just a few steps, the global online sales world is open to retailers. However, those, who do not adapt their accounting to trade via Amazon, are threatened with billing problems and high costs. Maximilian Zielosko, who developed the highly automated accounting software BuchhaltungsButler together with his partner Konrad Nerger, knows the problems that retailers face with regard to accounting in the area of e-commerce and in particular at Amazon.

Import transactions via Amazon interface

The more a retailer sells through Amazon, the greater the billing chaos threatens to become. However, precise accounting documentation is not only in the dealer's own interest; he is also obliged to do so vis-à-vis the tax office. It is therefore important to create an invoice for each transaction and assign it to the appropriate payment. "Correctly allocating receipts and payments is difficult, cumbersome and time-consuming without supporting software," Zielosko knows. If Amazon retailers process the payment data manually, this takes a lot of time, and such a procedure is a high source of errors. It is therefore important to use accounting software that has an Amazon interface. "Then all Amazon transactions will be imported automatically," explains Zielosko.

Ideally, accounting software should also enable automatic pre-accounting and automatic invoice reconciliation. "This saves a lot of time and reduces errors," says Zielosko. Although the account assignment of business transactions cannot happen by the numbers, they are often assigned in a similar way. If the accounting software can use special algorithms to learn how merchants assign certain invoices, it will immediately make the appropriate suggestions - and the manual effort that would otherwise be required for employees is no longer necessary. The same applies if employees do not have to compare the invoices manually, but the software does this and automatically checks payments and receipts for plausibility. “Amazon simply has too many business transactions for manual posting,” says Zielosko. A collective function in accounting is therefore also advantageous: "If the software sorts the same or similar business transactions according to certain criteria, they can be posted collectively". In this way, dealers can also take care of accounting that includes thousands of business transactions in a short time.

Young man with brown hair and brown beard in a turquoise pullover...
Maximilian Zielosko, co-developer of the accounting software BuchhaltungsButler
Source: BuchhaltungsButler GmbH

Individual invoices instead of Amazon service

Especially when retailers use the platform for global distribution, things can get complicated. Because the tax rates are not the same in all countries, especially not for third-party providers. The taxes not only have to be taken into account, but also shown correctly on the outgoing invoices. Ideally, the accounting software also supports the creation of invoices. "Thanks to workflow rules, software can automatically issue invoices in the individual customer design and structure," explains Zielosko. Amazon also offers an invoicing service; but in order to present yourself as a retailer and your own brand to the end customer, it is more advantageous to create your own invoice. Here, retailers can also store personalized messages for the customer and ask for an Amazon rating, which is only possible in this way in compliance with data protection.

In addition to the outgoing invoices, Amazon retailers should also have incoming invoices created for the monthly usage fees. Because the retailer must also document all of his expenses in the accounts. In addition to the monthly Amazon fees, there are also commission fees for each sale.

Author: Julia Kowal

related articles:

popular articles:

Thumbnail-Photo: Help yourself!: Are self-checkouts the next big thing in retail?...
14.06.2023   #brick and mortar retail #self-checkout systems

"Help yourself!": Are self-checkouts the next big thing in retail?

Efficient everyday business, efficient shopping

In the face of the digital age (and the rush just after the end of the workday or the day right before a holiday), retailers are looking for innovative technologies to continuously improve shopping experiences. Self-service checkouts (SCOs) allow ...

Thumbnail-Photo: POS printers that can be used for more than just receipt printing...
28.03.2023   #Tech in Retail #printers

POS printers that can be used for more than just receipt printing

Citizen Systems technology with a wide range of applications

In a world where we have access to various different types of technology to help our businesses it’s important that our devices can carry out a multitude of tasks – even our POS printers. That’s why Citizen System designed its ...

Thumbnail-Photo: Metaverse fashion week with an immersive ai-inspired showroom experience...
06.04.2023   #digitization #omnichannel

Metaverse fashion week with an immersive ai-inspired showroom experience

HUGO BOSS is taking a bold step into the Metaverse on the heels of a critically acclaimed Spring/Summer 2023 Fashion Show in Miami.

Serving as a digital extension of the BOSS Miami Fashion Show, with a visual identity that contrasts the event’s aquatic theme against brutalist architectural elements, the new space blends gamification with a digital shopping experience. ...

Thumbnail-Photo: Biometrics & AI powerd by Innovative Technology...
04.05.2023   #payment systems #artificial intelligence

Biometrics & AI powerd by Innovative Technology

Age estimation, access control and anonymous consumer analytics

A desire to continually innovate led to the development of Innovative Technology’s AI powered biometric solutions division. Using facial analysis to intelligently identify people more efficiently and securely, our solutions allow ...

Thumbnail-Photo: Iberian Sports Retail adopts Hii Retail native cloud platform...
19.06.2023   #e-commerce #retail

Iberian Sports Retail adopts Hii Retail native cloud platform

The Iberian Sports Retail Group adopts the Hii Retail native cloud platform in over 350 stores across three countries – “It enables us to scale up”

The multichannel leader in sports equipment sales in the Iberian Peninsula, Iberian Sports Retail Group (ISRG), has partnered with Extenda Retail to replace their Checkout applications. Extenda Retail’s next-generation cloud-native checkout ...

Thumbnail-Photo: Cash Handling powerd by Innovative Technology...
04.05.2023   #payment systems #cash management

Cash Handling powerd by Innovative Technology

Multi coin hoppers, note validators and recyclers

Established as a leading provider of cash handling equipment Innovative Technology enable customers to automate cash payments throughout the world. Manufacturing multi-coin hoppers, banknote validators and recyclers that handle millions of ...

Thumbnail-Photo: Aldi and (e-)commerce in China
26.06.2023   #online trading #e-commerce

Aldi and (e-)commerce in China

How the discounter is positioning itself in East Asia and what others can learn from it

"China is a highly competitive market," says Renata Thiébaut. Nevertheless, the company, headquartered in the Ruhr region, seems to have shown elbows and is now selling successfully there. The professor of e-commerce and China expert ...

Thumbnail-Photo: The most important characteristics of a shipping label printer...
12.05.2023   #Tech in Retail #printers

The most important characteristics of a shipping label printer

Printing solutions from Citizen Systems

There are many aspects of a printing solution that can make them or break them when it comes to being suitable for printing shipment labels. All over the world, shipment labels are being printed, applied, scanned, and read. Therefore, it’s ...

Thumbnail-Photo: Enhance inventory management and loss prevention – with Zebra...
12.06.2023   #e-commerce #brick and mortar retail

Enhance inventory management and loss prevention – with Zebra SmartCount solution

Now available in DACH, this accurate, easy-to-use solution provides time and cost savings and better inventory management

Zebra Technologies Corporation (NASDAQ: ZBRA), a leading digital solution provider enabling businesses to intelligently connect data, assets, and people, will present Zebra SmartCount™,  a proven, comprehensive solution now ...

Thumbnail-Photo: Alipay: Virtually experience Leonardo da Vincis work...
17.05.2023   #Tech in Retail #artificial intelligence

Alipay: Virtually experience Leonardo da Vinci's work

International Museum Day 2023: Experience Leonardo da Vinci's life's work virtually on Alipay

The virtual museum on Alipay is the latest example of how technology is being used to bring history and culture to life for a new generation of consumers. By partnering with Alipay, Digital to Asia and Way Experience are able to offer Chinese art ...


Innovative Technology Ltd.
Innovative Technology Ltd.
Innovative Business Park
OL1 4EQ Oldham
Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
Zebra Technologies Germany GmbH
Zebra Technologies Germany GmbH
Franz-Rennefeld-Weg 2-6
40472 Düsseldorf
Citizen Systems Europe GmbH
Citizen Systems Europe GmbH
Otto-Hirsch-Brücken 17
70329 Stuttgart