Click, ship, return… and reconcile.

Amazon returns look easy. The accounting behind them is not. 

Accounting ARC hosts Liz Mason, CPA; Byron Patrick, CPA.CITP, CGMA; and Donny Shimamoto, CPA.CITP, CGMA, react to a widely viewed YouTube investigation into Amazon returns and waste—and explain why the real story is an accounting story.  

Selling on Amazon is a marketing decision with fee math that matters.
The panel notes that many product founders choose Amazon because it delivers demand generation at scale. But that reach comes with referral fees—often 8% to 15% depending on category—plus listing and fulfillment charges that can erase margin if leaders don’t model the full cost of selling.  

Returns drive complexity, not just headaches.
E-commerce return rates run far higher than in-store. Retailers estimated 16.9% of sales were returned in 2024—about $890 billion—driven by fit issues, fraud, and reverse-logistics costs. That rate forces sellers to price for returns from day one and to track return-related COGS, write-downs, refurb costs, and disposal.  

Wayfair changed sales tax. Growth changes nexus.
Post-Wayfair, states can require remote sellers to collect and remit sales tax based on economic nexus thresholds. As sellers scale across platforms (Amazon, Shopify, Walmart), they can trigger multistate filings and apportionment questions. The hosts urge founders to engage specialists who automate marketplace data flows and keep pace with shifting thresholds.  

Waste creates a secondary market—and ESG risk.
Much of the return stream flows to liquidators who buy truckloads or pallets and resell to bin stores or consumers, creating a tertiary market. Yet a portion still ends up as global waste, raising environmental reporting questions and reputational risk for brands and sellers.  

Marketplace “badges” can help small sellers stand out.
Amazon features small-business and ownership badges (e.g., Black-Owned, Woman-Owned), which can lift discovery and connect purchases to values. Sellers should surface these signals in listings and packaging to remind buyers there’s a small business behind the “Buy Now” button.  

Returns are part of the model. Accountants who understand marketplace mechanics, sales tax nexus, cost allocation, and ESG impacts can help founders price correctly, reduce waste, and stay profitable—without sacrificing growth. 

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