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What do you charge for Amazon sellers

On Xero with A2X

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I'm about to quote for what will be the first of hopefully many Amazon FBA traders.

I was wondering what others charge for the bookkeeping on Xero with A2X integration. This client has sales of c£40k pcm, average product price at a guess c£10.

Thanks

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By Clinton Lee
20th Sep 2019 14:15

Sorry, I don't have an answer to your question as I don't run a practice, but I do have a tip I'm hoping you can pass on to your hopefully many Amazon FBA clients.

I work in corporate finance / M&A and I field many enquiries from Amazon FBA owners about selling their businesses. Unfortunately, many of them own their Amazon account in their personal name, not the name of a Ltd company.

This is a problem because Amazon doesn't allow accounts to be transferred and, quite often, the account with all its great feedback is one of the main assets of the business! The feedback is not just in terms of stars award by customers but also all the metrics that Amazon tracks - percentage of complaints, average time taken to respond to emails etc etc. Some accounts have also acquired, over the years, additional value by getting Amazon's okay to sell restricted products.

Please advise your Amazon FBA clients who are not incorporated that they're building value in an asset that they may not be able to transfer / sell in the future. Thank you.

Thanks (2)
By Glenn Martin
20th Sep 2019 16:32

Could you suggest what you are thinking of charging so we can comment as you have given no information as what you intend doing for the client.

If your not sure where your pricing should sit, GoProposal would be an good start for you.

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Replying to Glennzy:
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By atleastisoundknowledgable...
20th Sep 2019 18:33

This particular client wants me to setup Xero & A2X, do monthly bkpg and all the compliance. I was thinking £400-£450pcm and found an ‘e-com accountancy specialist’ with price calculator on their website. They would charge £475, so I’m prob gonna quote £425ish.

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Replying to atleastisoundknowledgable...:
By Glenn Martin
20th Sep 2019 22:04

I think you are on the money with that as it seems about right providing the purchase side is clean enough.

I would also maybe split your fee to include a set up fee one off cost

Watch out dor the vat though is he selling into EU countries

If he is Avalara provided VAT services to select amazon traders which are well priced and they save the hassle of you learning French and German vat systems

Thanks (1)
Replying to Glennzy:
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By atleastisoundknowledgable...
20th Sep 2019 22:06

Thanks Glenn. Apparently there’s only about 5-10 PIs pcm ...

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By ireallyshouldknowthisbut
20th Sep 2019 17:49

Personally id do a month as a trial, work out how long its takes, then give a fixed quote.

Any time savings are then yours to keep.

Then again we don't do bookkeeping.

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By Matrix
21st Sep 2019 07:55

I keep getting one of those accountant coaches pop up on Facebook with how to price your bookkeeping services and now a pricing study with all your competitors’ prices.

If you are interested then I can PM you the link as don’t want to advertise since they are rather annoying.

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Replying to Matrix:
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By atleastisoundknowledgable...
21st Sep 2019 08:08

Thanks - worth a gander.

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By NH
24th Sep 2019 12:15

The answer is as always it depends. Mainly it depends on how complicated the company affairs are.

One of our clients using many different bank accounts in different currencies that cannot be fed into Xero, that is a big pain.

Get access the the seller account and you can get all you need for sales and fees in csv, although it can take a bit of head scratching at times.

EU VAT is another big pain, but with one of our other Amazon FBA clients, VAT Global charge around 5k a year for VAT filing in other EU countries, but Amazon paid the first year for them.

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