As an Amazon seller, it’s important to track all of your expenses and income accurately to get a clear understanding of your profitability. One area that can often be overlooked is the recording of promotional discounts and coupons. In this blog post, we’ll discuss how to record these discounts and coupons in your Amazon seller accounting.

Promotional Discounts

Promotional discounts are a common way for sellers to entice buyers to purchase their products. These discounts can come in many forms, such as percentage off, buy-one-get-one-free, or a dollar amount off the total purchase. These discounts are usually offered by the seller, but Amazon can also provide promotions for your products.

When you offer a promotional discount, it’s important to track it separately from your regular sales. This will give you a clear idea of how much revenue you’ve generated from the promotion and how it has affected your overall profitability. To record the promotional discount in your accounting system, create a separate income account and record the discount as a negative amount.

For example, if you offered a 10% promotional discount on a $100 product, the customer would only pay $90. To record this in your accounting system, you would create a separate income account called “Promotional Discounts” and record the discount as a negative $10.

Coupons

Coupons are another way to offer discounts to your customers. They can be a percentage off, a dollar amount off, or a free product with purchase. Coupons are usually offered by the seller, but Amazon can also provide coupons for your products.

When a customer uses a coupon, it’s important to track it separately from your regular sales. This will give you a clear idea of how much revenue you’ve generated from the coupon and how it has affected your overall profitability. To record the coupon in your accounting system, create a separate income account and record the coupon as a negative amount.

For example, if you offered a $5 coupon on a $50 product, the customer would only pay $45. To record this in your accounting system, you would create a separate income account called “Coupons” and record the coupon as a negative $5.

Conclusion

Recording promotional discounts and coupons in your Amazon seller accounting is important to accurately track your profitability. By creating separate income accounts and recording the discounts and coupons as negative amounts, you can get a clear understanding of how they have affected your overall sales. With this information, you can make informed decisions about your pricing strategy and promotional offers.