By Rob Fogarty, Amazon FBA seller (OA and wholesale) and founder of Opero3P · October 2026
For a long time I looked at Seller Central and thought I had a decent handle on how my business was doing. Sales were there. Payouts were landing in my bank account. Amazon's reports looked tidy.
Then I handed everything to a bookkeeper to close the books properly, and the picture changed. The biggest surprise for me was reimbursement money just sitting there, unresolved: refunds where the item never came back, adjustments that were never matched to anything, and claims nobody had followed up on. On Amazon's screens it was a line here and a line there. In the actual books it was money I'd either lost or never chased.
That experience is a big reason I built the books side of Opero3P. Here's what I learned about the gap between what Amazon shows you and what an accountant needs, so you can see it coming before your CPA does.
I'm a seller, not an accountant. This is what I've learned running my own store; talk to your own bookkeeper or CPA about your situation.
1. Unresolved refunds and reimbursements
When a customer gets a refund, one of three things should happen: the item comes back to your inventory, Amazon reimburses you for it, or it's a case where Amazon doesn't owe you anything. The problem is that Seller Central shows these in separate reports, and nothing ties them together order by order.
So you end up with refunds that never got a return or a reimbursement, reimbursements that Amazon later reversed (took back) because the unit turned up, and inventory adjustments that were never explained. Each one is small, but together they're real money, and a bookkeeper has to account for every one.
What I learned when I finally chased mine:
- There's a time limit. Amazon generally only accepts a returns reimbursement claim within 120 days of the refund. Miss that and the money's gone.
- Not everything is owed. Returns graded as customer-damaged, items marked non-returnable, and orders refunded before they ever shipped are usually denied. Knowing that saves you filing cases you'll lose.
- Reversals matter. A reimbursement followed by a reversal that puts the unit back in stock isn't money owed; it's resolved. If you only look at the payment, you'll think you're owed something you're not.
2. Your payout isn't your sales
The deposit that hits your bank is sales minus Amazon's fees, refunds, storage, advertising and anything Amazon held back. It's useful for cash flow but useless for profit unless you break it apart. A bookkeeper needs the pieces, not the net number.
3. Money Amazon is still holding
Amazon doesn't pay you for every order right away. Some payments are deferred until after delivery, and some sellers have funds held in reserve. That money is earned, but it isn't in your bank yet, so your bank balance and your actual income don't line up month to month.
4. Sales tax isn't your income
In most US states Amazon collects and pays sales tax for you as the marketplace. It still shows up in your transaction reports. If it gets counted as revenue, your income looks higher than it really is.
5. Inventory you bought isn't an expense yet
This one trips up a lot of sellers. Buying $5,000 of inventory doesn't mean you spent $5,000 of expenses this month. That inventory becomes cost of goods sold when it sells. Until then it's an asset sitting on the shelf at Amazon. Count it all as an expense up front and your profit looks terrible the month you buy and great the month you sell.
To get this right, you need to know what each unit actually cost you: the purchase price plus prep fees plus inbound shipping. That's your landed cost, and different batches of the same product often cost different amounts.
6. The costs that live outside Amazon
Seller Central only knows about Amazon's fees. It doesn't know about your software, your VA's pay, your prep center invoices, your sourcing trips or the interest on the card you bought inventory with. Those are real business costs, and without them your "profit" is just product profit.
7. Removals, disposals and write-offs
Unsellable returns and stranded inventory cost you twice: the unit is worthless, and getting it removed or disposed of costs a fee. If those units are still counted as inventory, your books say you have stock you'll never sell.
What a clean set of Amazon books needs
Put together, a bookkeeper closing an Amazon seller's month needs:
- Sales, fees, refunds and reimbursements exactly as Amazon posted them, including what Amazon is still holding.
- Sales tax kept out of income.
- Cost of goods sold calculated when units sell, at what those specific units actually cost, including prep and shipping.
- An inventory roll-forward: what you started with, what you bought, what sold, what was lost or written off, and what's left.
- Every reimbursement and refund matched to its order, with what's still owed and what's been resolved.
- Your overhead from your bank and cards, sorted so nothing is counted twice.
How I do it now
That list is basically what Opero3P builds for me every month:
- Amazon's actual lines: sales, fees, refunds and reimbursements pulled straight from Amazon's settlement data, including funds Amazon is still holding, with sales tax kept out of income.
- Landed cost of goods, sold first in, first out: each sale is costed at what that unit actually cost, including prep and freight.
- Inventory roll-forward from start to end of the month.
- Discrepancies: every refunded order matched to its return and any reimbursement, showing what may still be owed, how many days are left to file, and the case written for you.
- Bank and card feeds: overhead pulled in automatically and sorted so supplier payments and Amazon payouts aren't double-counted.
- The Accountant Pack: one export with a "Read me" that maps every number, so your bookkeeper isn't guessing what each figure means.
My bookkeeper used to spend time untangling Amazon's reports. Now they get a pack they can close from.
FAQ
Is my Amazon payout the same as my profit? No. A payout is sales minus Amazon's fees, refunds, storage and holds. Profit also has to subtract what your inventory cost and your costs outside Amazon, like software, prep and staff.
Why doesn't my Amazon income match my bank deposits? Amazon defers some payments until after delivery and may hold funds in reserve, so earned income and cash received land in different periods. Refunds and reimbursements can also post in a different month from the original sale.
Should Amazon sales tax be counted as income? In most US states Amazon collects and remits sales tax as the marketplace facilitator, so it shouldn't be counted as your revenue. Confirm the details for your state with your CPA.
When does inventory become an expense for an Amazon seller? Generally when it sells, as cost of goods sold. Until then it's inventory on hand. Your CPA will confirm the right method for your business.
How long do I have to file an Amazon returns reimbursement claim? Amazon generally accepts returns reimbursement claims within 120 days of the refund. Check Amazon's current policy, as windows change.
What does a bookkeeper need from an Amazon seller? Amazon's actual transaction lines, landed cost of goods per unit, an inventory roll-forward, reconciled refunds and reimbursements, and your non-Amazon expenses from your bank and cards.
Opero3P is my company. This article is general information from my own experience as a seller, not tax or accounting advice.