Weekly Ecommerce Accounting Insights

If you sell through Amazon or Shopify, you gain access to customers worldwide. That reach also creates a constant flow of settlements, fees, refunds, inventory movements, VAT obligations and cross-border transactions.

An effective accounting system does more than help you file year-end accounts. It reveals which products actually make money, where cash is tied up and which compliance tasks need your attention right now.

This weekly guide covers the most important accounting and compliance priorities for UK ecommerce sellers in 2026.

Reconcile marketplace settlements before reviewing profit

Amazon and Shopify typically pay you a net amount. That payout may already exclude:

• Marketplace commissions.
• Fulfilment and storage fees.
• Advertising charges.
• Refunds and chargebacks.
• Payment processing fees.
• VAT or sales tax collected.
• Currency conversion costs.

If you record only the bank deposit, your turnover and expenses will be understated. Your VAT return may also be incomplete.

Instead, reconcile each settlement against the underlying transaction report. Your accounting records should show the gross sale, deductions and final payout separately.

A reliable weekly process should include:

1. Import Amazon and Shopify transaction data.
2. Post sales by tax jurisdiction and VAT treatment.
3. Record marketplace fees and refunds separately.
4. Match the final settlement to the bank deposit.
5. Investigate differences before they accumulate.

This is one of the main reasons sellers look for an ecommerce accountant UK businesses can rely on. Ecommerce bookkeeping requires platform-specific reconciliation rather than simple bank-feed coding.

Tools such as A2X or Link My Books can help automate settlement data into compatible cloud accounting software. Automation saves time, but you still need a review process to confirm that tax codes, currencies and fee mappings remain correct.

Review contribution margin by SKU

Revenue alone does not show whether a product is profitable.

A product that sells for £30 may appear successful until you deduct:

• Product cost.
• Import duty and freight.
• Amazon referral fees.
• FBA fulfilment and storage charges.
• Shopify payment fees.
• Advertising spend.
• Packaging and returns.
• VAT or other transaction taxes.

Calculate contribution margin by SKU at least monthly. Review your highest-volume products first.

For example, a product with a £30 selling price may have £12 of product and landed costs, £5 of marketplace fees, £4 of advertising and £6 of fulfilment and returns. Its contribution before fixed overheads is only £3.

This information supports better operational decisions. You can reprice low-margin items, reduce advertising on unprofitable products or prioritise stock purchases for stronger performers.

Use accrual-based reporting where practical. It matches revenue with the costs incurred to generate it, giving you a more accurate view than simply comparing monthly payouts with bank payments.

Check UK VAT exposure every week

For a UK-established business, the compulsory VAT registration threshold is £90,000 of VAT-taxable turnover in a rolling 12-month period. You must also consider whether you expect to exceed that threshold in the next 30 days.

Review your taxable turnover across every channel, not just one marketplace. Include sales from:

• Amazon.
• Shopify.
• eBay or other platforms.
• Direct invoices.
• Wholesale customers.
• Digital services connected with your ecommerce business, where relevant.

If your business is based outside the UK, different rules can apply. Non-UK-established businesses supplying taxable goods or services in the UK may have to register without relying on the UK-established business threshold. Holding stock in a UK fulfilment centre can be particularly important.

Read the current HMRC VAT registration guidance and VAT thresholds before making a registration decision.

Once registered, maintain accurate digital VAT records. HMRC requires VAT-registered businesses to use compatible software and digital links under Making Tax Digital for VAT. Review VAT Notice 700/22 to understand the record-keeping requirements.

Configure Amazon and Shopify VAT settings correctly

Your platform settings must reflect how and where you sell.

Amazon FBA sellers may move stock between fulfilment locations. Shopify sellers may sell directly to customers in the UK, Europe, North America and other markets. Each movement can affect the VAT or sales tax treatment.

Check these areas regularly:

• Product VAT rates.
• Zero-rated and reduced-rated products.
• Customer location evidence.
• Marketplace facilitator treatment.
• Import VAT and customs documentation.
• VAT registration numbers stored in platform settings.
• Refund and credit-note treatment.
• Currency and tax reporting settings.

Shopify does not take responsibility for all of your tax reporting obligations. You remain responsible for recording sales correctly and meeting your filing requirements.

If you sell goods into the EU, check whether you need local VAT registrations or whether OSS or IOSS arrangements apply. The EU-wide distance-selling threshold is generally €10,000 for relevant cross-border consumer sales, although the correct treatment depends on your establishment, stock location and transaction structure.

We provide full-suite compliance in the UK, Ireland, USA, Canada and Australia. For EU markets, our approved scope focuses on modular VAT services, including registration and filings in jurisdictions such as Germany, France, Italy, Spain and the Netherlands.

Strengthen Amazon FBA accounting UK inventory controls

Inventory is often one of the largest assets on an ecommerce balance sheet. It is also a common source of inaccurate profit figures.

Your weekly review should compare:

• Amazon inventory reports.
• Third-party logistics records.
• Purchase invoices.
• Goods received.
• Units sold.
• Returns and damaged stock.
• Lost or reimbursed inventory.
• Inventory held in each country.

Record landed cost consistently. This should normally include the purchase price and relevant freight, duty and import costs. Consistent inventory costing gives you a more dependable cost of goods sold figure.

An effective Amazon FBA accounting UK process should also investigate unexpected changes in storage fees, removal charges and reimbursements. Small discrepancies can become material when multiplied across thousands of units.

Confirm who acts as the US importer of record

Selling to US customers creates customs obligations that are separate from income tax.

The importer of record is responsible for ensuring that goods entering the United States are properly declared. This can include responsibility for:

• Customs classification.
• Declared value.
• Country of origin.
• Duties and fees.
• Entry documentation.
• Record retention.
• Corrections and responses to customs enquiries.