Answers/Ecommerce
Tax and money questions ecommerce sellers ask
Straight answers with the forms, thresholds, and deadlines that actually apply. Every page starts with the short answer and ends with what to do about it.
Answered so far
8
questions for ecommerce sellers
Writeoffs
Is Cost of Goods Sold a Tax Deduction?
Yes, effectively the largest one most ecommerce sellers have. Cost of goods sold subtracts from gross receipts before profit is even calculated, so every dollar of product cost reduces taxable income. The timing rule is the catch: COGS is deducted in the year the unit sells, not the year you bought the stock.
Can Ecommerce Sellers Write Off Ad Spend?
Yes. Advertising is a fully deductible business expense under IRC Section 162, so 100% of your Meta, Google, TikTok, and Amazon ad spend reduces taxable profit. Influencer fees, UGC creators, agency retainers, and email platform costs count too. It goes on Schedule C line 8 in the year the cost belongs to.
How Is Inventory Taxed for Ecommerce Sellers?
Inventory is not deducted when you buy it. The cost sits on your books as an asset and becomes a deduction, called cost of goods sold, only in the year each unit sells. A $30,000 stock order deducts nothing by itself; the write-off arrives sale by sale as those units ship to customers.
Income
What you get with Amadae
One flat monthly price. Real accountants who know how ecommerce sellers get paid.
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- Quarterly estimates calculated and set aside before each deadline
- Your return filed by a real accountant, S-corp math included
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- Monthly profit and loss reports
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