Many online sellers know their sales but not their profit. Good basic accounting shows what is really happening.
Work with a chartered accountant for GST, income tax and compliance.
Keep records of
- Purchase invoices for stock.
- Sales by channel.
- Marketplace fees and settlements.
- Shipping, packaging and ad costs.
- Returns and claims.
- GST collected and paid.
Know your real profit
Profit = revenue − product cost − fees − shipping − packaging − ads − returns − overheads. Calculate margin with our profit margin calculator.
GST
- File returns on time.
- Claim input credit on fees, purchases and TCS where eligible.
- Check tax amounts with our GST calculator.
Use accounting software
Accounting tools can import marketplace data and simplify GST.
Monthly review
Profit by product and channel, cash flow and stock value.
Read settlement reconciliation.
Want the full picture? This article is part of Marketplace selling: the complete guide, our in-depth guide with everything in one place.
