Setting Up Xero for Amazon FBA Sellers

Step-by-step guide to configuring Xero with A2X for your Amazon business.

Why this matters for digital businesses

A good Xero setup for Amazon sellers needs to reconcile payouts, fees, refunds, VAT, stock movements, advertising spend, and payment timing. The mistake is treating every Amazon deposit as simple sales income. The payout is usually a net settlement after multiple movements, so the bookkeeping system needs the detail behind the deposit, not just the bank receipt.

Key checks before you act

• Connect Amazon settlement reports through a reliable connector or import workflow.
• Map sales, refunds, fees, FBA charges, advertising, and VAT to separate accounts.
• Reconcile every payout to the bank deposit and investigate timing differences.
• Track stock, cost of goods sold, and marketplace fees separately from gross revenue.

Common mistakes to avoid

• Posting net payouts as sales and losing visibility of fees and refunds.
• Using generic categories that make profit by SKU or channel impossible to review.
• Letting connector rules run without monthly checks against actual settlement reports.

Next steps

1. Design the chart of accounts around Amazon settlement lines.
2. Test one settlement end to end before importing historic data.
3. Review monthly gross margin, fees, refunds, stock, and VAT using reconciled reports.

Questions digital businesses ask