As an Amazon seller, it is important to keep track of all the expenses that you incur in the course of running your business. One of the key expenses that you need to track is the shipping and handling fees charged by Amazon. In this post, we will discuss why it is important to track these fees and how you can do it effectively.
Why track shipping and handling fees?
Shipping and handling fees are charged by Amazon when you use their fulfillment services. These fees can be significant, and they can have a significant impact on your profit margins. By tracking these fees, you will have a better understanding of your true cost of goods sold (COGS). This, in turn, will help you to make better pricing decisions and optimize your profits.
How to track shipping and handling fees?
To track shipping and handling fees, you will need to access your Amazon seller account. Here are the steps you need to follow:
- Log in to your Amazon seller account.
- Go to the Reports section.
- Click on “Payments”.
- Select “Transaction View”.
- Set the date range for the period you want to track.
- Click on “Download”.
Once you have downloaded the report, you can use a spreadsheet program like Excel to sort and filter the data. Look for the columns labeled “Shipping Credit” and “Shipping Fees”. These columns will show you the total shipping fees charged by Amazon, as well as the shipping credits you received for each order. Subtract the shipping credits from the shipping fees to get your net shipping and handling fees.
Tips for tracking shipping and handling fees
Here are some tips to help you track shipping and handling fees more effectively:
- Use accounting software: If you are managing a large volume of sales, it may be more efficient to use accounting software that integrates with your Amazon seller account. This will allow you to automatically import your transaction data and track your expenses more accurately.
- Set up a system: Develop a system for tracking your shipping and handling fees. This could involve using a spreadsheet or creating a dedicated folder in your email inbox for Amazon receipts. Whatever system you choose, be consistent and stick to it.
- Review your data regularly: Regularly review your shipping and handling fee data to ensure that it is accurate and up-to-date. This will help you to make more informed business decisions and identify areas for cost savings.
Conclusion
Tracking shipping and handling fees is a crucial part of managing your Amazon seller account. By doing so, you can gain a better understanding of your true COGS and make better pricing decisions. By following the tips outlined in this post, you can effectively track your shipping and handling fees and optimize your profits.