How to reconcile your first marketplace payout
Reconcile the platform balance to the payout and bank receipt, then calculate batch contribution separately from net sales, selling costs and the landed cost of units actually sold. Held funds explain cash timing; they are not automatically an expense. Review factory-side batch costs with Cambridge China Bridge.
Gather records with matching dates
Download the order transactions, settlement statement, fee invoices, refund records, advertising bills and held-balance report. Save the bank receipt and warehouse movements too. Record the settlement reference, currency and reporting dates. A sales dashboard and a payout can cover different dates, so do not compare their totals without checking what each includes.
Keep a settlement view for platform movements and a batch view for sales of the imported goods. Link entries using order, product, batch and transaction references. Record sale, refund, settlement and bank dates separately. HMRC says platform reports do not replace normal business records or tax calculations.
Bridge the platform balance to your bank
Start with the opening total platform balance, including held funds. Add sales credited and other credits; subtract refunds, fees, advertising deductions, other actual debits and payouts. The result should match the closing total balance, including held funds. Moving money between available and held balances is an internal transfer, so do not deduct it again from this total.
Match each payout to its bank receipt using the settlement reference. Keep payouts sent but not yet received as transfers awaiting clearance. Identify bank charges or currency conversion separately. Ask the platform to explain any remaining difference with transaction references rather than treating it as an unidentified fee.
| Entry | Settlement treatment | Batch contribution treatment |
|---|---|---|
| Gross sales | Sales credited before refunds and platform deductions | Starting sales amount; separate discounts and sales VAT where applicable |
| Platform fees | Debit, with any fee credit recorded separately | Selling cost attributable to the batch |
| Customer refunds | Debit linked to the original order | Reduce sales; review returned stock separately |
| Advertising deductions | Debit matched to the advertising bill | Attributable advertising cost, counted only once |
| Withheld funds | Part of the closing balance until released or otherwise resolved | No expense merely because funds are held |
| Cost of units sold | Usually outside the platform statement | Deduct landed cost attributable to sold units |
Calculate contribution for the batch
Define gross sales consistently, showing goods, customer delivery charges and seller-funded discounts separately. Calculate net sales after discounts and refunds, excluding sales VAT where applicable. Deduct attributable platform fees, fulfilment, delivery, advertising, return handling and the landed cost of units actually sold. Label the result batch contribution, with its scope stated. Deduct separately identified launch costs and allocated overheads if presenting a broader batch result. For your own labour, see our guide to first-batch returns after valuing your time.
Use China order profit and cash planning for the underlying model and budgeted versus actual landed cost to establish the actual cost input. Carry unsold units separately rather than deducting the entire import purchase. Keep recoverable VAT outside cost and ask your accountant to confirm VAT treatment and the mapping to your accounts and tax calculations.
Check refunds and advertising without duplication
Link each refund to its sale and record whether the goods returned. Reverse the sold-unit cost only when usable goods return to stock; keep damaged, missing and quarantined returns separate. Show any stock loss explicitly without charging the same cost twice. Check fee credits, retained fees, return postage and replacements individually. A customer refund does not prove that the platform refunded its fee.
Match advertising deductions to invoices, campaign dates and product coverage. An invoice settled through the payout is the same expense, not an additional payment. Include attributable advertising paid separately by card, even though it is absent from the settlement. Document how shared campaigns are allocated. Keep later refunds and charges linked to the batch while recording their actual settlement dates.
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Close differences before using the result
Maintain an exceptions list for unmatched transactions, unexplained deductions, outstanding refunds, estimated bills and held funds. Give each item an owner and supporting document request. Ask the platform why funds are held, what must happen for release and whether any amount has been applied to a claim. A release increases available cash without creating another sale; an actual charge needs separate classification.
Finish with a review sheet showing batch contribution, unsold stock cost, cleared bank receipts, funds still held and unpaid commitments. Mark the result provisional while material costs or refunds remain unresolved. Use when to scale up after your first shipment before committing to another order. Cambridge China Bridge's staff in China can help investigate factory-side cost or quantity differences.
Frequently asked questions
Why is my marketplace payout lower than my sales?
Check reporting dates, refunds, fees, advertising deductions, other debits and held funds. Reconcile the opening and closing platform balances, then match the payout to the bank receipt.
Are marketplace reserves an expense?
Holding funds alone is a cash timing issue. Track them within the platform balance. If the platform applies funds to a refund or charge, classify that transaction separately.
Do I deduct the whole trial batch cost?
For batch contribution, deduct the landed cost attributable to units sold. Keep unsold stock separately and show losses explicitly. Ask your accountant how this management view maps to your accounts.
How do I avoid counting advertising twice?
Match the advertising invoice to its settlement deduction or card payment. Record the expense once, with its payment route. Include attributable advertising paid outside the platform too.