E-commerce and platform sellers

Accounting for businesses where payouts are not sales

E-commerce and platform-based businesses often struggle because cash received does not represent revenue earned.

Platforms collect money from customers, deduct fees, process refunds and chargebacks, and release funds later in bundled payouts. When accounting systems are not designed for this reality, payouts are incorrectly treated as sales, margins become unreliable, and cash flow no longer aligns with reported profit.

Why e-commerce accounting breaks down

E-commerce accounting breaks down when platform payouts are treated as the underlying transaction.

In most platform-based models, the business does not receive customer payments directly. Platforms collect funds, deduct fees, process refunds and chargebacks, and release cash later in net, bundled settlements. When accounting systems are built around bank deposits instead of the underlying sales activity, revenue, costs, and cash flow become disconnected.

This often leads to:

Revenue being understated or overstated depending on timing
Platform fees and refunds being buried inside sales
Margins that fluctuate without a clear operational cause
Inventory and cost of sales that do not align with revenue
Financial statements that do not reconcile back to platform reports

These issues are not caused by growth alone. They arise when accounting is driven by cash movements rather than the economics of the transaction lifecycle.

E-commerce businesses require accounting structures that recognise sales when they occur, separate platform activity from settlement, and reconcile payouts back to gross activity in a controlled and repeatable way.

How we support e-commerce and platform businesses

We support online sellers and platform-based businesses with accounting systems designed around how platforms actually operate.

Our work typically includes:

Proper gross versus net revenue treatment
Clearing and settlement account structures
Accurate handling of platform fees, refunds, and chargebacks
Inventory and cost of sales logic that reflects reality
Margin and cash flow reporting that fully reconciles

The focus is not just compliance, but clarity. Numbers should explain what is happening in the business, not obscure it.

Who is this for

We work with established online businesses operating through platforms and intermediaries, including:

E-commerce brands using platforms and payment processors
Marketplace sellers and commission-based models
Direct-to-consumer businesses with high transaction volume
Businesses with delayed, net, or bundled settlement

This includes, but is not limited to, Shopify, WooCommerce, marketplaces, and direct-to-consumer brands.

How we work

Our approach is accrual-based and systems-led. We focus on structure, reconciliation discipline, and reporting that management can rely on.

We do not rely on cash shortcuts, automated categorisation alone, or “close enough” solutions that break as the business grows.

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Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business. See also our Disclaimer page