Hi All,
I'm curious how to account for fees paid to Amazon for book sales. Two payments are made. On is $40 per month be a "Power Seller." This saves you a $1 per sale fee, and allows you to electronically upload inventory lists. It's really a necessity, in my mind, to have this in order to conduct business there. When books sell, there is also a commission of roughly 15% of the sale price that Amazon retains.
Would these two charges be considered costs of goods sold or simple expenses?
It's possible - even likely - that I don't grasp the cost of goods sold concept quite right yet. I think of shipping expenses as costs of goods sold, as they are a necessary part of the sale of each item. By that line of thinking, almost all of my expenses are COGS though, and I know that isn't right. Where does one draw the line?
Thanks and Regards, Max