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Question
I'm a seller on etsy and the shipping fees are deducted from my 'wallet' before income is deposited. How do I account for this?
- Anonymous
Answer
Your revenue will be recorded at the gross amount and any shipping fees will be recorded as an expense. For example, if you sold an item on Etsy for $100 but where charged a $5 shipping charge and received $95 in your wallet, the $100 will be recorded as revenue and $5 will be recorded as shipping expense. You'll want to download a gross sales report, or similar report, that shows your gross sales and any expenses deducted from the sales price.

Melissa Pedigo

Melissa Pedigo has been a CPA for over 20 years and she is one of the only CPA copywriters in the world. With a vast knowledge of U.S. tax and accounting, she’s able to write about tax and finance topics from a unique perspective...as an industry expert. When she’s not writing or being an accounting nerd, you’ll find her watching and playing tennis, reading, tending to her half-grown garden, and studying foreign languages

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