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?
Answered by Melissa Pedigo, CPA ·
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.