Key takeaways
- Reconcile every settlement against your records.
- Understand each line type.
- Revenue is not profit.
- Document discrepancies with evidence.
What a settlement is
Amazon pays sellers according to a settlement period, summarizing sales, refunds, fees and adjustments, then paying the net balance to your bank account, subject to any reserves. Each settlement has an associated report listing every transaction.
Timing, schedules and reserves vary by account and marketplace, so check current information in Seller Central.
The main components
Reports typically include sales and shipping income, referral fees, fulfillment and storage fees for FBA, refunds, advertising charges where applicable and various adjustments or reimbursements. Understanding each type of line is the first step to reconciling the total.
Reconcile each period
Match the settlement totals to your accounting records. Check that sales equal what you expect from order reports, that refunds match returns and that fees are within normal ranges for your products. Investigate any unexplained difference rather than letting it roll forward.
- Compare sales with order data
- Compare refunds with returns
- Review fee types and amounts
- Check adjustments and reimbursements
Spot anomalies
Look for sudden changes in fee percentages, duplicate charges, fees on items you did not sell or refunds that exceed the original sale. Sample a few products each period and recalculate expected fees using current fee schedules.
Keep notes of anything unusual and the outcome of any query.
Working with your accountant
Agree a standard export and monthly timetable with your accountant. Provide them with settlement reports, cost of goods information and any notes about unusual transactions. Marketplace tax treatment varies by country, so rely on qualified advice for tax and VAT matters.
Separating revenue from profit
Settlement reports tell you what Amazon charged and paid, not your product costs, shipping, returns handling or overheads. Profit needs those additional inputs. Combine settlement data with your own cost data for accurate profitability.
Escalating discrepancies
If you find an error, prepare a concise case with the transaction identifiers, the amount in question, why you believe it is wrong and supporting evidence. Specific, well-evidenced cases are more likely to be resolved smoothly.
A worked example
During a monthly reconciliation, a seller notices fulfillment fees on one product are higher than the previous period although volumes are similar. They check the product dimensions in the catalog and find a measurement error that placed the item in a larger size tier.
After correcting the data and opening a case with evidence, they ask Amazon to review the affected period. Discrepancies like this are only found by comparing reports to expectations on a regular schedule.
Your next three steps
Make reconciliation a monthly habit.
- Download each settlement report and match totals to your records.
- Sample fees on five products and compare with the schedule.
- Document any discrepancy before opening a case.
Key terms
A few terms used above, in plain language.
- Settlement: the periodic summary of sales, fees and payout.
- Reserve: an amount temporarily held back from payout.
- Reconciliation: matching reports to your own records.
Frequently asked questions
How often are settlements issued?
It depends on your account and marketplace. Check the payments area for your schedule.
What if a fee looks wrong?
Recalculate it using the current fee schedule and, if still wrong, open a case with transaction details.
This guide is general information. Amazon's fees, policies and program rules change and vary by marketplace, so confirm current details in Seller Central and, for tax or legal questions, with a qualified adviser.