Veeqo does not charge for its shipping software, and that changes nothing about the accounting. The labels bought through it are real costs that belong in the period of the sale, allocated to the channel and the SKU that caused them. The discounted rate is the cost, not the carrier's list price. The credits Veeqo pays back reduce a later month's expense, not this one's. And the inventory quantities Veeqo syncs across channels are counts, not values, so the ledger still has to carry FIFO cost on its own. "Free" removes a subscription line. It removes none of the entries.
Per veeqo.com, Veeqo is Amazon's free multichannel shipping software. The site's FAQ states that Veeqo was founded by a seller in 2013 and acquired by Amazon in 2021, that shipping features are free for every seller because carriers pay Veeqo a commission on each label, and that some inventory and warehouse features are offered at an additional cost. It connects to Amazon, eBay, Shopify, Walmart, Etsy, and other channels and buys labels from USPS, UPS, FedEx, and DHL at pre-negotiated rates. ConnectBooks connects Veeqo data to QuickBooks or Xero.
A label that lists at $9.40 and costs $6.80 through Veeqo's negotiated rate is a $6.80 expense. That sounds obvious until a seller prices products off the carrier's published rate card, then books the discounted amount, and cannot work out why the shipping line runs 25 percent under budget every month. The budget was built on a number the business never pays.
The reverse mistake is subtler. Sellers who charge customers a shipping fee based on list rates and pay discounted rates earn a spread on shipping. That spread is revenue, and the FASB settled years ago (EITF Issue 00-10, now in the codification) that amounts billed to customers for shipping are revenue, not a reduction of shipping cost. Show shipping income on its own line. Show label cost on its own line. Let the P&L show the spread instead of hiding it.
One more wrinkle specific to Amazon sellers. Veeqo's site says Amazon sellers can pay for labels directly from their Seller Central balance instead of a card. A label paid that way never appears on a card statement or a bank feed. It shows up as a deduction on the Amazon settlement, and the only way it reaches the ledger is through settlement reconciliation. A seller who books shipping from the card feed alone will miss every label paid from the balance, and the shipping line will read low by exactly that amount while the Amazon clearing account absorbs it.
Veeqo's site says sellers earn up to 5 percent of a shipment's base value back in Veeqo Credits, and that credits are deducted from the bill the next time the card is charged. From an accounting standpoint that is a rebate applied against a future purchase. The clean treatment is to book October's labels at the full amount charged to the card in October, and book November's labels net of the credits applied in November. October's shipping cost is what October paid. The credits reduce November. Ask your CPA if you want to accrue the credits as a receivable in the month earned instead; for most sellers the amounts do not justify the extra entry.
A seller shipping Amazon merchant-fulfilled orders, Shopify orders, and eBay orders from one Veeqo account gets one shipping cost. The channel P&L needs three.
Illustrative numbers. October, 3,100 shipments, $21,080 in labels, an average of $6.80.
Now the Shopify channel, with and without its share.
Without labels allocated, Shopify contribution is $52,800 minus $21,100 minus $1,580, or $30,120, a 57.0 percent contribution margin. With its $7,040 of labels, contribution is $23,080, or 43.7 percent. Thirteen points of margin that were sitting in an unallocated "Shipping" line at the bottom of the company P&L.
The Amazon merchant-fulfilled side tells the opposite story. Those 1,400 shipments carry $10,220 of labels, an average of $7.30 against the company's $6.80, because Amazon orders skewed to heavier items that month. A seller deciding whether to move those SKUs into FBA needs the $7.30, not the $6.80, and needs it next to the FBA fulfillment fee for the same SKU. The company-level average answers neither question.
Allocation by channel is arithmetic once the label data carries an order reference, which Veeqo's does. Allocation by SKU inside a channel follows the same path. The ShipStation version of this argument, with the per-SKU example, is in ShipStation and your COGS, and every word of it applies here.
Veeqo's inventory features keep stock levels consistent across channels: sell three on eBay, and the Amazon and Shopify listings drop by three. That is quantity sync, and it prevents overselling.
It is not valuation. Nothing in a quantity sync knows that the three units sold came from a PO layer at $11.20 while the next forty on the shelf came from a layer at $12.60. The ledger has to know, because COGS for the sale is $33.60 and the balance sheet still carries the rest at $12.60. A seller who reads Veeqo's stock count, multiplies by a cost field, and calls the result inventory value has an approximation that drifts a little every time a supplier price changes and a lot after a freight surcharge. Inventory tracking in ConnectBooks holds the FIFO layers and landed cost so the value side is computed where the books are.
The two systems reconcile once a month: Veeqo's on-hand count by location against the ledger's implied count, with the gap explained by damage, free replacements, and receipts counted short. Then the count valued at FIFO against the ledger balance.
For October, the seller above needs the following to reach QuickBooks or Xero.
None of that is more work because the software was free. It would be the same list at any subscription price. ConnectBooks reconciles marketplace settlements into the ledger at the transaction level, and Veeqo data connects alongside them so label cost lands in the same period and channel as the sale it delivered.
The shipping software is free. The labels, the allocation, and the close are not, and the seller who treats "free" as "handled" finds the $7,040 in the wrong place at year end.
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