Why Amazon FBA needs specialized bookkeeping
Amazon FBA has costs that generic bookkeeping systems miss:
- Amazon referral fees: a 15% commission in most categories (it varies by category)
- FBA fulfillment fees: storage, picking, packing and shipping costs
- Aged-inventory fees: surcharges for stock that sits in Amazon’s warehouses too long
- Advertising costs: Amazon PPC (Sponsored Products, Brands, Display)
- Product costs (COGS): supplier costs, shipping to Amazon, prep services
- Returns and reimbursements: lost or damaged inventory claims
Hidden costs add up
Many FBA sellers think they’re profitable until they add up every fee. Amazon fees typically run 30-45% of your selling price, so your spreadsheet needs to track every fee to calculate true net profit.
Essential tabs for your FBA bookkeeping system
SheetLink writes a Transactions tab and an Accounts tab into the Google Sheet you choose. Set up these tabs in the same workbook:
| Tab | Columns | Where the data comes from |
|---|---|---|
| 1. Sales & Revenue | Order ID, Date, Product, Units Sold, Selling Price, Total Revenue | Seller Central settlement reports, checked against the Amazon deposits SheetLink syncs |
| 2. COGS & Inventory | Product, Supplier, Unit Cost, Quantity Purchased, Shipping to Amazon, Total COGS | Your supplier invoices (link them from Google Drive) |
| 3. Amazon Fees | Date, Fee Type (Referral, FBA, Storage), Amount, Related Order or Product | Seller Central’s Transaction View (fees come out of your payouts, so they aren’t bank charges) |
| 4. Operating Expenses | date, merchant_name and amount from the Transactions tab, plus your own tag (PPC, software, VA, shipping supplies) | Your business bank and card transactions, synced by SheetLink |
| 5. Profit & Loss Dashboard | Gross Revenue, COGS, Amazon Fees, Operating Expenses, Net Profit | Formulas that pull from the other tabs and calculate margins |
Calculating true Amazon FBA profit
Here’s the profit calculation, with the formula behind each line:
FBA profit calculation
| Line | Formula | Amount |
|---|---|---|
| Gross sales | =SUM('Sales & Revenue'!F:F) | $50,000 |
| Amazon referral fees (15%) | =SUMIF('Amazon Fees'!B:B, "Referral", 'Amazon Fees'!C:C) | -$7,500 |
| FBA fulfillment fees | =SUMIF('Amazon Fees'!B:B, "FBA", 'Amazon Fees'!C:C) | -$8,000 |
| Net revenue | $34,500 | |
| Cost of goods sold | =SUM('COGS & Inventory'!F:F) | -$15,000 |
| Gross profit | $19,500 | |
| Amazon PPC ads | =SUMIF(Transactions!AI:AI, "PPC", Transactions!M:M) | -$6,000 |
| Storage fees | =SUMIF('Amazon Fees'!B:B, "Storage", 'Amazon Fees'!C:C) | -$500 |
| Other expenses | =SUMIF(Transactions!AI:AI, "Other", Transactions!M:M) | -$2,000 |
| Net profit | $11,000 | |
| Net margin | Net profit ÷ gross sales | 22% |
How the formulas read SheetLink’s data
SheetLink writes the same 34 columns on every sync (A to AH), so add your own Tag column in AI and label rows PPC, Other and so on. Column M is amount, which follows Plaid’s sign: money out (purchases, fees) is positive and money in (deposits, refunds) is negative. Expense totals come out positive, and the P&L subtracts them. Enter the fees in your Amazon Fees tab as positive amounts too.
Bringing in transactions with SheetLink
Typing bank and card transactions in by hand is slow and error-prone. SheetLink syncs your business transactions instead:
Connect your business bank account
Connect your business credit cards
Press Sync now
Categorize transactions
What about Amazon fees?
Amazon fees are deducted before your payout, so they won’t appear in your bank transactions. Download monthly settlement reports from Seller Central and import those fees into your Amazon Fees tab, or use accounting software like A2X that syncs Amazon data automatically.
Key metrics to track
Monitor these metrics monthly on your P&L dashboard:
| Metric | Formula | Good target |
|---|---|---|
| Gross margin | (Revenue - COGS - Amazon fees) ÷ Revenue | 40-50% |
| Net margin | Net profit ÷ Revenue | 15-25% |
| ACoS | Ad spend ÷ Ad sales | Under 25% |
| TACoS | Ad spend ÷ Total sales | Under 10% |
| Inventory turnover | COGS ÷ Average inventory value | 6-8x a year |
Tax preparation for FBA sellers
Proper bookkeeping makes tax time much easier:
- Separate business and personal: use dedicated business accounts
- Track quarterly estimated taxes: set aside 25-30% of profit for taxes
- Deductible expenses: COGS, Amazon fees, PPC ads, software, home office, shipping supplies, mileage
- Sales tax nexus: Amazon collects sales tax, but you may need to file returns in several states
- Inventory accounting method: choose FIFO, LIFO or weighted average (consult a CPA)
When to upgrade from spreadsheets
Google Sheets works well for most FBA sellers, but consider dedicated FBA accounting software when:
- You’re doing over $500K a year in revenue
- You have 50+ SKUs to track
- You sell on several marketplaces (Amazon.com, Amazon.ca, eBay, Shopify)
- You need real-time P&L by product
Popular FBA accounting tools: A2X (Amazon to QuickBooks or Xero), Link My Books and Finale Inventory.
Questions
What does an Amazon FBA bookkeeping spreadsheet need to track?
An Amazon FBA bookkeeping spreadsheet should track gross sales, Amazon referral fees (typically 15%), FBA fulfillment fees, long-term storage fees, Amazon PPC advertising spend, cost of goods sold (COGS) from suppliers, supplier shipping costs to Amazon, and returns and reimbursements. These feed a P&L dashboard showing gross margin, net margin, ACoS and TACoS.
How do I get Amazon FBA transactions into Google Sheets?
There are two parts. For Amazon payouts and business expenses, SheetLink syncs your business bank account and credit card transactions into Google Sheets through Plaid when you press Sync now (free for one bank and your last 7 days of transactions; Pro is $4.99 a month). For Amazon fee details (referral fees, FBA fees), download monthly settlement reports from Seller Central and import them, or use a tool like A2X that connects Amazon directly to QuickBooks or Xero.
What is a good net profit margin for Amazon FBA?
A healthy Amazon FBA net profit margin is 15-25% of gross sales. Amazon fees typically take 30-45% of your selling price (referral plus FBA fulfillment fees), so you need strong margins before fees. Track TACoS (total ad spend ÷ total sales) and keep it under 10%. Gross margin after Amazon fees and COGS should be 40-50% to leave room for advertising and operating expenses.
When should I upgrade from Google Sheets to dedicated FBA accounting software?
Google Sheets works well for most FBA sellers. Consider dedicated software when you pass $500K a year in revenue, have 50+ SKUs, sell on several marketplaces (Amazon US, Canada, eBay, Shopify), or need real-time P&L by product. Popular dedicated FBA tools include A2X (syncs Amazon to QuickBooks or Xero), Link My Books and Finale Inventory.