How is payment taken when l buy shipping label via Amazon?
Hi there, simple question: If l buy a shipping label via Amazon:
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Is payment deducted from my existing Amazon balance? Or is it taken from the payment method l have on file?
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And how do l review the payment method l have on file?
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Finally, when is payment taken?
Thanks!
27 replies
Seller_Tb8ss0mHqRu5x
OK a mini update: My account is now showing that the £1.05 postage label l purchased was deducted from the existing balance.
It would be interesting to know if there’s ever a situation where l might have zero balance or not enough to cover the postage label (unlikely, unthinkable) - how would l be debited for the postage label in that theoretical situation?
Seller_tRuvBEHDedp4q
Although I can see what you are doing and technically for cash accounting its probably ok, you do need to know your total gross income so my advice is to properly split costs now between income and expenses.
You have to become VAT registered when total gross income goes over a limit (cant remember exactly but it is about £80k on a scrolling 12 month period). Without knowing your total gross income you may accidentally go over the limit and suffer penalties later on. You also have to consider that Amazon fees form part of your overall income for VAT purposes (so if sales were £75k and fees £5k, for purposes of VAT you have an income of £80k and need to register for VAT)
There are reports in Amazon you can download and transfer into a spreadsheet and then add a few calculation columns to do a sum of sales and expenses. Similarly with any other site you sell on. Then have an overall spreadsheet that brings in the totals from all sites and adds in your other expenses. I did it successfully that way for many years. Now I use an online accounts package instead.
