The Amazon Illusion: Why Revenue Means Nothing Without the Right Accountant
For many Amazon sellers, the revenue looks fantastic. Sales are up. Disbursements are rolling in. The numbers seem to be climbing month after month. But here’s the uncomfortable truth: revenue doesn’t equal profit, and too many sellers don’t realise it until it’s far too late.
Amazon’s marketplace is a maze of hidden costs and invisible margin killers. From storage and fulfilment fees to advertising budgets that bleed cash, it’s dangerously easy to lose money while convincing yourself you’re doing just fine. And if your accountant isn’t untangling the detail behind those glossy sales reports, chances are you’re running on assumptions, not facts.
The Hidden Cost of Amazon Success
The average Amazon seller can recite their top-line sales figures without hesitation. But ask about net profit after FBA fees, VAT and ad spend? Most go quiet.
Why? Because Amazon doesn’t make it easy. Settlement reports are dense and poorly structured. Fees are split across different headings and deducted before payouts. Add in stock write-offs, long-term storage penalties and aggressive discounting strategies, and suddenly the numbers aren’t so straightforward.
Without someone actively breaking this down, many sellers operate in the dark. They think they’re profitable until their tax bill arrives or cash flow dries up.
Why Normal Accountants Miss the Red Flags
A traditional accountant might do a solid job preparing a year-end return, but if they don’t live and breathe Amazon, they’re working with a fraction of the picture. They might reconcile bank statements and invoice totals, but they’ll likely miss:
- Hidden Amazon costs buried in your seller account
- Returns that affect stock levels and revenue recognition
- Incorrect VAT treatment on cross-border sales
- Misreported marketplace income, leading to tax underpayments
- Inventory write-downs that distort profit margins
In short, they won’t know what to look for and you’ll pay the price.
What You Truly Need
This is where specialist accountants for Amazon sellers make the difference. They know how Amazon works. They understand that a surge in ad spend without a clear ACoS (Advertising Cost of Sale) strategy can torpedo profits. They know how to handle VAT in pan-EU sales. And they speak your language when you say “FBA” or “Seller Central.”
The right accountant should help you:
- Break down fees and reconcile payouts
- Track true profit per product, not just revenue
- Comply with UK and EU VAT rules
- Forecast tax obligations before they become painful surprises
- Clean up data for smart financial decisions
Why Sterling & Wells Gets It Right
Sterling & Wells is widely recognised as one of the top accountants for Amazon sellers in the UK. Their team doesn’t just handle compliance, they dig deep into seller accounts to uncover the truth behind the numbers.
Their Amazon-specific services include:
- Regular profit reports with SKU-level analysis
- Full VAT support: UK, EU, and beyond
- PVA declarations and advice on import VAT when stocking UK fulfilment centres
- Business structuring and tax strategy tailored for global sellers
Whether you’re based in the UK or overseas and selling into the UK market, Sterling & Wells provide clarity and control — the two things most Amazon sellers often don’t know they are missing.