
How to Reconcile Shopify Fulfillment Fees and Duties Without Missing a Dollar of Product COGS
Duties and freight are inventory cost, not expenses — capitalize them per SKU, reconcile payouts gross-to-net, and accrue uninvoiced fulfillment monthly.
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Financial analysis and earnings reports for Shopify Inc. (SHOP), the commerce platform

Duties and freight are inventory cost, not expenses — capitalize them per SKU, reconcile payouts gross-to-net, and accrue uninvoiced fulfillment monthly.

Shopify payouts are net settlements, not revenue — book gross sales, split every fee, and stage chargebacks; your 1099-K reports the gross to the IRS.

Shopify labels bill separately from payouts — split each invoice, book postage to COGS, and remit sales tax collected on shipping.

Marketplace payouts are net settlements, not revenue — book gross sales, split every fee into its own account, and tie each deposit to its settlement report.

Record gross marketplace sales as revenue and fees as expenses — Form 1099-K reports gross Box 1a, so net-deposit bookkeeping never reconciles.

Shopify Q2 2026: $3.58B revenue (+34% YoY) on $115.6B GMV, $488M operating income and an 18% free-cash-flow margin; $1.25B of investment gains lift net income to $1.5B — tracked via public Beancount ledger.