A marketplace settlement is the periodic payout an ecommerce platform sends a seller after deducting fees, refunds, taxes, reserves, and adjustments. Every marketplace settles on its own schedule with its own format. Understanding the differences is the first step to clean ecommerce books.
A marketplace settlement is the net amount a marketplace (Amazon, Shopify, Walmart, eBay, TikTok Shop, Etsy) deposits into a seller's bank account on a fixed schedule, after subtracting that period's fees, refunds, advertising charges, and any held reserves.
The settlement is not the same as the seller's gross revenue. The gross revenue from a $24.99 order on Amazon doesn't reach the bank account; only the leftovers after Amazon deducts referral fees, FBA fees, advertising, sales tax remittance, and the reserve buffer do.
| Marketplace | Settlement period | Reserve hold | Deposit timing |
|---|---|---|---|
| Amazon | Every 14 days | 7 days rolling | 3-5 business days after period close |
| Shopify (Shopify Payments) | Daily (US standard) | None (default) | 2-3 business days after order |
| Walmart Marketplace | Every 14 days | 14 days | 5-7 business days after period close |
| eBay (Managed Payments) | Daily or weekly | None (default) | 2 business days after order |
| TikTok Shop | Daily or 7-day | 7-14 days for new sellers | 3-7 business days |
| Etsy | Daily, weekly, biweekly, or monthly (seller choice) | None (default) | 2-3 business days |
The settlement period dictates how often you need to reconcile to your accounting system. Daily-settling marketplaces (Shopify, eBay) feed your bank with frequent small deposits; biweekly marketplaces (Amazon, Walmart) feed with infrequent large ones.
For accrual accounting, the order date matters more than the settlement date. Revenue is recognized when the order ships, not when the cash arrives. This creates timing differences that show up as accounts receivable on your balance sheet.
Amazon and Walmart hold a portion of your earned revenue as a reserve against future returns and chargebacks. The reserve is real cash. It's your money, just not yet deposited.
For accounting, the reserve goes on the balance sheet as Reserves - Amazon (or equivalent), not as a fee on the income statement. Common mistake: treating a $4,200 Amazon reserve hold as a fee, which inflates expenses by the reserve balance each period.
ConnectBooks pulls settlement files automatically from all connected marketplaces on each settlement period close, parses every transaction type into the correct QuickBooks or Xero account, applies FIFO COGS to the units shipped during the period, separates reserves into the balance sheet, and reconciles the net to the actual bank deposit. The manual 90-minute-per-settlement process becomes a 2-minute review.
Running an e-commerce business comes with plenty of challenges, but ConnectBooks is here to make your life easier. With real-time insights, seamless integrations, and detailed tracking of your profitability and inventory, you can stay ahead of the game. Whether you’re selling on Amazon, Shopify, Walmart, TikTok or eBay, ConnectBooks helps you manage your finances with 100% accuracy and confidence, so you can focus on growing your business.
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