For Amazon sellers, understanding the detailed transaction report provided by the platform is a key factor in effective financial management. The transaction report is an invaluable tool for tracking expenses, identifying profits, and ensuring accurate reconciliation. However, deciphering the various expense heads listed in the report can often feel overwhelming. In this blog, we will break down the different components of Amazon’s transaction report and provide actionable insights to help you manage your seller account effectively.
Whether you are a seasoned Amazon seller or just starting your e-commerce journey, understanding the finer details of this report is crucial for managing your business operations. Let’s dive into the core elements of the Amazon transaction report and learn how to decode the complex expense structure.
Key Headers in the Amazon Transaction Report
Amazon’s transaction report contains multiple headers that categorize different aspects of your sales and expenses. Below, we’ll discuss the major headers in detail:
- Date/Time
This field represents the date and time when the transaction occurred. It helps sellers trace specific transactions to particular time periods for analysis and reconciliation.
- Settlement ID
This unique ID is assigned to each settlement period, enabling sellers to track their earnings and expenses during a specific payout cycle. This is particularly useful for reconciling with your bank statements.
- Type
The “type” column defines the nature of the transaction—whether it’s a product sale, refund, or adjustment. Understanding the transaction type is essential for categorizing revenues and expenses.
- Order ID
Every order processed through Amazon is associated with a unique order ID. This makes it easier to track the status of individual orders, especially when resolving customer disputes.
- SKU (Stock Keeping Unit)
This is your internal identifier for products. Monitoring SKUs helps track inventory levels and identify top-performing products.
- Description
The description provides further details about the transaction. For example, it could specify whether the entry pertains to a refund, a promotional rebate, or a shipping charge.
- Quantity
This column specifies the number of units sold or returned for a particular transaction. Monitoring this helps sellers understand sales trends and manage inventory.
- Marketplace
The marketplace field indicates the Amazon site where the transaction occurred. For sellers operating in multiple regions, this information is critical for identifying location-specific performance metrics.
- Account Type
This field differentiates between seller-fulfilled and Amazon-fulfilled orders. Understanding this distinction helps sellers analyze their costs and profit margins for different fulfillment methods.
- Fulfillment
The fulfillment column specifies whether the order was fulfilled by Amazon (FBA) or the seller. Each option comes with its own cost structure, which is broken down in subsequent headers.
- Order City, State, and Postal Code
These fields provide details about the customer’s location. Sellers can use this data for market segmentation and targeted marketing campaigns.
- Product Sales
This represents the revenue generated from the sale of products. It’s the most straightforward figure to track but must be reconciled against other expenses to calculate net profit.
- Shipping Credits
Shipping credits are the amounts Amazon reimburses to the seller for shipping costs. These credits are applicable for seller-fulfilled orders.
- Gift Wrap Credits
If you offer gift wrapping, the fees paid by customers for this service are recorded under this header.
- Promotional Rebates
Promotional rebates represent the discounts applied to customer orders. Sellers must track these amounts to understand the cost of promotions on overall profitability.
- Total Sales Tax Liable
This column reflects the total GST liability (before TCS adjustments) on each transaction. Proper monitoring ensures compliance with tax regulations.
- TCS-CGST, TCS-SGST, TCS-IGST
These columns reflect the Tax Collected at Source (TCS) components for Central GST (CGST), State GST (SGST), and Integrated GST (IGST). Sellers must reconcile these figures with their GST filings.
- TDS (Section 194-O)
This column specifies the Tax Deducted at Source (TDS) as per Section 194-O of the Income Tax Act. It is crucial to track this for accurate tax reporting.
- Selling Fees
Amazon charges various selling fees, including referral fees and closing fees, which are recorded under this header. Analyzing these costs is essential for calculating net profit margins.
- FBA Fees
If you’re using Fulfillment by Amazon, this column lists all associated costs, such as storage and fulfillment fees.
- Other Transaction Fees
This header includes fees such as high-volume listing charges or long-term storage fees. Monitoring these costs helps avoid unnecessary overheads.
- Other
Miscellaneous charges and credits that don’t fall under specific categories are recorded here. It’s essential to review this section for any unexpected expenses.
- Total
This column summarizes the total cost or revenue for each transaction. It’s the final figure sellers should review for reconciliation.
Why Monitoring These Expense Heads is Critical
Effective financial management is the backbone of any successful Amazon business. By monitoring the above expense heads, sellers can:
- Identify high-cost areas and reduce unnecessary expenses.
- Reconcile transactions accurately and avoid financial discrepancies.
- Evaluate the effectiveness of promotional campaigns and discounts.
- Ensure compliance with tax regulations.
- Gain insights into product and location-specific performance.
How FTT MIS Tool Simplifies Reconciliation
Manually reconciling Amazon’s transaction reports can be tedious and error-prone. FTT MIS by Fast Trade Technologies Private Limited simplifies this process, generating well-analyzed reconciliation reports in just 2 minutes and 3 simple steps. With its user-friendly interface and robust analytics, FTT MIS is the perfect solution for Amazon sellers seeking efficient financial management.