We recently ran one of our in-depth cloud accounting webinars, “Is Xero Suitable for Amazon Sellers?”.
It was a great turnout, and I was happy to help with as many questions as we had time for. Unfortunately, I couldn’t get through all of them!
Since so many of you were hungry for advice about how to integrate Xero with Amazon, I thought I’d post a few of the best questions from the webinar for anyone who couldn’t make it on the day.
If you haven’t got time to watch the whole recording, this is for you. And if you’ve got a question about accounting apps and Amazon that’s not answered here, don’t be shy – we’ll be more than happy to give you some advice.
Q: Can you run A2X and DEAR together?
But would I recommend it? Not really.
These two apps will essentially be serving the same purpose. So, if I came across an Amazon seller that was using both in tandem, I’d have to dig a little deeper to find out why they were doing it.
One possible reason is that your client has other sales channels to worry about (beyond Amazon). If that’s the case, then I’d recommend that you stick with DEAR on its own.
Another reason could be that your client’s already using DEAR – and A2X looks like an easier way to get the information into Xero. If that’s the reason, then it probably just means that DEAR hasn’t been set up correctly.
In this case, you’d be better off having a closer look at how your client has their DEAR app configured.
Q: Does A2X work with both Vendor and Seller Central?
The short answer? Probably not.
The important difference here is that Amazon’s Vendor Central works by EDI (Electronic Data Interchange).
Unfortunately, most integration solutions work purely with API (Application Programming Interface). This means that most integration apps (including A2X) probably won’t connect with Vendor Central directly.
However, I can say for sure that an app like Cin7 does have a direct integration with Vendor Central. So if you know you need something that can link up with Vendor Central, Cin7 is definitely worth a look.
Q: Which systems are most clients moving from?
I can’t speak for every client in every industry. But what I can do is tell you a bit about our own clients here at BlueHub.
Lots of our clients are large e-commerce businesses, usually with a turnover that’s somewhere between £1 million and £15 million.
With these clients (especially those based in the UK) I’ve seen a large portion starting out from Sage products – and they’re often encouraged by Sage to upgrade from the out-dated Sage 50 to the newer Sage 200.
But that’s an expensive move, with the lowest possible upgrade costs starting at around £15,000.
Instead, I like to recommend that businesses look at other options. That same amount of money would more than cover the cost of something like Cin7 and Xero – and they’d end up with a much better system that’s better integrated.
Q: Would Unleashed work instead of DEAR or Cin7?
As far as I’m aware, Unleashed doesn’t currently have an integration with Amazon.
And while it does have links with platforms like Magento and Shopify, it doesn’t connect directly to places like WooCommerce and BigCommerce.
So if your business is only worried about a select few platforms, you could definitely make Unleashed work for you.
But for most businesses, they’ll want to keep their options open – which is why I usually recommend systems like DEAR and Cin7.
Q: Do you recommend that we sync DEAR or Stitchlabs to Xero? Does this affect Xero’s transaction limit?
When DEAR works with Amazon, it only pulls over a summary statement into Xero.
As far as Xero’s concerned, this summary statement only counts as one transaction. So if your business is selling high volumes of low-cost goods, that’s perfect.
You’ll be able to lump together a large number of transactions into something that Xero reads as a single invoice – which means it’ll be much harder to hit Xero’s transaction limit.
In fact, that’s also something that DEAR can handle in a few other e-commerce platforms, too. You can ask DEAR to group transactions into batches as they arrive into DEAR, so that they’re sent off to Xero as a single invoice. However, you will need to grab each individual order number from the e-commerce platform.
Q: How do you go about setting up A2X?
Luckily, setting up A2X is relatively straightforward – at least when compared to something more complicated like Cin7.
On the first screen in A2X, for example, you’ll be able to set which fees, sales and reimbursements you want to attach to specific tax codes. You’ll also be able to track these in your chart of accounts.
There are loads of in-depth guides out there that can help you get started – a quick Google search will bring up several YouTube tutorials and written guides.
Alternatively, by becoming an A2X partner, you’ll be able to get support from A2X directly, which should take you through the initial set-up and help you get going as soon as possible.