Amazon Fee Reconciliation: A Complete Guide for Sellers with Cointab
Are Amazon’s intricate fee structures hindering your profitability? You’re not alone. Millions of businesses leverage Amazon’s massive marketplace, but managing the diverse fees associated with each sale can be a daunting task. Cointab’s software empowers you to streamline reconciliation, ensure accuracy, and maximize your bottom line.
Challenges of Manual Reconciliation:
Time-Consuming Data Management: Extracting and summarizing data from various Amazon reports is a tedious and error-prone process.
Complex Fee Calculations: Understanding and calculating each fee type (shipping, referral, closing, etc.) requires in-depth knowledge and can be a significant hurdle.
Inefficient Error Detection: Manually identifying discrepancies in Amazon charges is a time-consuming and error-prone endeavor.
Cointab: Your Automated Reconciliation Solution
Cointab automates the entire reconciliation process, eliminating manual data entry and ensuring accurate fee verification. Here’s how our software streamlines your workflow:
Effortless Data Upload: Simply upload your Amazon reports (MTRs, Disbursements, etc.), and Cointab takes care of the rest.
Automated Fee Verification: Our software meticulously verifies a wide range of Amazon fees, including:
Shipping Fees: We consider crucial factors like SKU weight, shipping zone, fulfillment type, and step level for precise verification.
Referral Fees: Cointab leverages category-specific referral fee percentages to ensure accurate calculations.
Closing Fees: We analyze the price range and fulfillment channel to determine the correct closing fee for each product.
Pick and Pack Fees (FBA): Cointab utilizes Amazon’s rate card to verify pick and pack fees for FBA orders.
Technology Fees (Seller Flex): Our software verifies technology fees based on Amazon’s rate card and relevant client information.
Clear Discrepancy Identification: Cointab highlights any discrepancies between calculated fees and actual charges from Amazon, ensuring you identify potential overcharges or missed fees.
Shipping Fee:
Accurately calculating Amazon’s complex shipping fees can be a challenge for sellers. Factors like SKU weight, shipping zones, fulfillment types, and even step level all play a role. Cointab’s software simplifies reconciliation by automating these calculations:
Understanding Key Shipping Fee Components:
SKU Weight:
Cointab creates an SKU master file, calculating both volumetric weight (based on product dimensions) and actual weight. The higher weight is used for fee calculation, ensuring accuracy.
Shipping Zone:
Our software leverages Amazon’s zone data to determine the appropriate shipping zone for each order, eliminating manual zone identification.
Fulfillment Type:
Cointab analyzes disbursement reports to identify the fulfillment type (FBA or Seller Fulfilled). This ensures the correct fee structure is applied based on Amazon’s guidelines.
Step Level:
While Amazon sets step level based on quarterly sales, Cointab integrates this data to ensure comprehensive fee calculations.
Size Guidelines:
Cointab considers product dimensions to classify items as standard or heavy/bulky. This adheres to Amazon’s weight and size thresholds for accurate fee determination.
Optimizing for Efficiency: Cointab streamlines the process further by:
Automating Calculations: Eliminate manual calculations for volumetric weight, shipping zones, and fulfillment type.
Leveraging Amazon Data: Utilize Cointab’s integration with Amazon’s reports (MTRs, Disbursements) to ensure accurate data for fee calculations.
Clear Fee Verification: Identify potential discrepancies between calculated and actual fees.
Cointab’s reports categorize these discrepancies for informed decision-making:
Correct Charged: Indicates fees that match your calculations.
Overcharged: Highlights potential errors where Amazon charged more than expected.
Undercharged: Identifies instances where Amazon might have undercharged you, potentially leading to lost revenue.
Not Charged: Flags orders where specific fees were not applied.
Empower your finance team with Cointab's automated reconciliation. Get started today!
Sign Up For Demo
Referral Fee
Referral fees are a significant cost for Amazon sellers, but managing them doesn’t have to be a headache. Cointab’s software simplifies reconciliation by automating calculations and ensuring accuracy.
Understanding Amazon Referral Fees:
Category-Specific Rates: Amazon assigns different referral fee percentages for various product categories. Cointab leverages this data to ensure precise fee calculations for each item you sell.
Transparent Fee Preview: Amazon provides a referral fee preview report that outlines these category-specific percentages. Cointab integrates with this report for seamless fee verification.
Effortless Referral Fee Calculation:
Gone are the days of manual calculations! Cointab automates the process using this simple formula:
Total Referral Fees = Item Price x Referral Fee Percentage
For example, if you sell a book priced at ₹450 and the referral fee percentage for books is 4%, Cointab calculates the referral fee as ₹450 x 4% = ₹18.
Clear and Actionable Insights:
Cointab empowers you with clear and concise reports that categorize discrepancies between your calculated fees and Amazon’s charges:
Correct Charged: Indicates fees that match your calculations.
Overcharged: Highlights potential errors where Amazon charged more than expected.
Undercharged: Identifies instances where Amazon might have undercharged you, potentially leading to lost revenue.
Not Charged: Flags orders where referral fees were not applied.
Closing Fees
Closing fees can be a convoluted aspect of Amazon’s fee structure for sellers. Cointab’s software simplifies reconciliation by automating calculations and ensuring accurate fee verification for both FBA and Seller Fulfilled orders.
Understanding Closing Fees:
Price and Fulfillment Dependent: Closing fees vary based on two key factors: the product’s price range and the fulfillment channel used (FBA, Easy Ship, Seller Fulfilled). Cointab considers both factors for precise calculations.
FBA Closing Fees: Determined by the item’s price and category. Cointab leverages Amazon’s data to identify exceptions (like a lower fee for Books in the ₹0-250 category) and apply the correct closing fee for each FBA order.
Example: FBA Closing Fees
- Book priced at ₹200 (falls under the advertised ₹0-250 exception): Cointab calculates a closing fee of Rs. 12 based on Amazon’s data for this category exception.
- Speaker priced at ₹450 (doesn’t fall under any exception):** Cointab calculates a closing fee based on the standard FBA fee structure for speakers in the ₹451-500 price range which sums up Rs 20 (or relevant price bracket based on Amazon’s current structure).
Easy Ship & Seller Fulfilled Closing Fees:
Have a simpler structure based solely on the item’s price. Cointab utilizes this structure for accurate calculations.
Example: Easy Ship & Seller Fulfilled Closing Fees
- Book priced at ₹200 shipped with Easy Ship:** Cointab calculates a closing fee of Rs. 5 based on the standard Easy Ship fee structure for this price range.
- If you are selling Speaker at Rs. 450 through Self ship, closing fees = ₹Rs. 20.(or relevant price bracket based on Amazon’s current structure).
Clear Discrepancy Identification:
Cointab’s reports categorize discrepancies between your calculated fees and Amazon’s charges:
Correct Charged: Indicates fees that match your calculations.
Overcharged: Highlights potential errors where Amazon charged more than expected.
Undercharged: Identifies instances where Amazon might have undercharged you, leading to lost revenue recovery opportunities.
Not Charged: Flags orders where closing fees were not applied.
Join successful businesses like our customers in optimizing your Amazon transactions with Cointab!
Pick and Pack Fee
Verifying Pick and Pack Fees (FBA):
Cointab simplifies pick and pack fee verification for FBA orders. Here’s how it works:
Product Analysis: Cointab analyzes your product data to determine the appropriate size tier based on Amazon’s pick and pack fee structure.
Rate Card Integration: Cointab references the relevant pick and pack fee from Amazon’s official rate card based on the identified size tier.
Discrepancy Identification: Cointab compares the expected fee (based on the rate card) with the actual fee charged by Amazon, highlighting any differences.
Clear Fee Breakdown: Cointab provides clear reports that categorize these discrepancies:
Correct Fee: Indicates orders where the charged fee matches your calculations.
Potential Overcharges: Highlights instances where Amazon charged more than expected based on the rate card.
Not Charged: Flags orders where pick and pack fees were not applied, potentially indicating missing charges from Amazon.
This breakdown empowers you to identify potential discrepancies and ensure accurate fee application for your FBA orders.
Technology Fee:
Amazon’s Seller Flex fulfillment offers additional services to select sellers. However, these benefits come with a technology fee based on Amazon’s rate card. Cointab simplifies verification for these technology fees, ensuring accuracy and saving you time.
Understanding Technology Fees:
Seller Flex Specific: Technology fees apply solely to sellers utilizing the Seller Flex fulfillment option. Cointab caters to this specific service category.
Rate Card Transparency: Amazon provides a rate card outlining technology fees. Cointab integrates with this data for seamless verification.
Effortless Fee Verification: Cointab automates the verification process for technology fees, eliminating manual calculations. Here’s how it works:
Client Data Integration: Cointab integrates with your data to understand your specific Seller Flex arrangement (if applicable). Rate Card Matching: Cointab references the relevant technology fee from Amazon’s rate card based on your Seller Flex plan.
Discrepancy Identification: Cointab compares your calculated fee with the actual fee charged by Amazon, highlighting any deviations.
Clear and Actionable Results:
Cointab delivers clear and concise reports that categorize discrepancies:
Correct Charged: Indicates fees that match your calculations.
Potential Overcharges: Highlights instances where Amazon charged more than expected based on the rate card.
Not Charged: Flags orders where technology fees were not applied, potentially indicating missing charges from Amazon.
Navigating the complexities of Amazon’s fee structure can be a daunting task. By leveraging Cointab’s automated fee reconciliation software, you can streamline the process, save valuable time, and ensure accurate calculations for various fees like shipping, referrals, closing fees, pick and pack (FBA), and even technology fees (Seller Flex). Cointab empowers you to identify potential discrepancies and maximize profits by recovering lost revenue due to overcharges. Gain valuable insights into your Amazon fee structure and make informed decisions that optimize your pricing strategies. Don’t let intricate fees hold you back – take control of your Amazon finances today with Cointab’s automated fee verification solution!
