We explain what the term of ‘ecommerce’ actually means in relation to bookkeeping and accounting. This article gets to the bottom of what it is, how it works and how you can train to become an ecommerce bookkeeper.
Firstly, what is ecommerce?
This term is getting used a lot these days. So let’s break it down…
In summary, ecommerce selling is the process of buying and selling products or services online.
Buying online is the standard way in which we shop nowdays. Whether its on Amazon, eBay, Etsy, TikTok, or direct from the brand’s website. It’s quite normal for us to do our shopping online.
We can pay by entering our card details manually, or with ApplePay, GooglePay, PayPal, or in instalments with Klarna.
It all happens in a few clicks and before we know it, our goods arrive at our doorstep.
So let’s look at an example and think about the big picture here:
Example: you buy a new phone case on Amazon for £10.00. You pay using PayPal.
Here’s what happens in the background:
- Your order is received by Amazon shipping & fullfilment. They box and dispatch your order.
- PayPal takes your money.
- From this money, Amazon will take their fee (for dealing with the shipping).
- PayPal will also take a handling fee.
- Finally, whatever is leftover (lets say £5.00) is paid to the business selling the phone cases.
- The business buys the phone cases in from China at £1.50 each. So it will make £3.50 on each one that it sells (this is the profit).
For the bookkeeping, several things need to be recorded:
- The original sale of £10.00
- VAT 20% (sales tax)
- Amazon’s fee
- PayPal’s fee
- The final payout of £5.00
- The £1.50 cost of phone case itself from China
- The final profit of £3.50
- The inventory stock has decreased by x 1 phone case
Imagine a company sells 500 x phone cases per day. That’s thousands of transactions to account for.
It’s beyond the scope of manual work. These transactions need to be recorded in bulk within the accounts software (like QuickBooks or Xero).
Nowdays, there are apps and software designed to do the hard work for us. We can automate the process to make it quicker and more efficient.
These apps will recognise each element of the process and ‘feed’ this data into the accounting software.
Being an ecommerce bookkeeper means that you’re specially trained to program the apps and set-up the automations.
It’s essentially programming the data so that multiple transactions can be recorded at once. We configure and control the automations.
Training to become an ecommerce bookkeeper
Being a digital bookkeeper these days simply means you are competent using digital methods such as receipt-scanning apps and cloud-based accounting software, such as Xero.
In 2025 it’s rare to find a bookkeeper who isn’t digital. Most are now paperless and with the introduction of the HMRC’s ‘Making Tax Digital’ (or MTD for short) it is now the law to submit your VAT and taxes online using digital methods.
That’s being a digital bookkeeper.
Being an ecommerce bookkeeper takes it up a notch.
Ecommerce accounting is a specialised area of accounting which can pay from £25-£80 per hour depending on experience and complexity.
You need to be tech-savvy and have a good understanding of the accounting system.
You can learn in under 6 months and there are tons of free resources.
If you want to become an ecommerce bookkeeper, here are the key things to consider:
Skills & Training
- Basic Accounting Knowledge – Firstly, you need to be trained and qualified in bookkeeping at a basic level. (Ideally Level 2 with IAB, ICB or AAT or equivalent)
- Software Proficiency – Secondly, its crucial you are comfortable with Xero or QuickBooks. You’ll need to confidently know your way around your accounts software like a whizz in order to find & fix errors, make new ledgers and reconcile efficiently. Xero’s partner programme offers a free demo version of Xero which is a great tool to practice and learn from.
- Ecommerce-Integration Apps – A2X and LinkMyBooks are the two leaders in ecommerce integration apps. Get yourself registered with them and start to learn the basics of how the app ‘connects’ to the accounting software.
- Ecommerce Sales Platforms – You will need to have some experience of ecommerce sales platforms (such as Shopify, Amazon, eBay, Etsy, Woocommerce etc) and also payment processors (PayPal, Stripe, Klarna). Shopify is a leading sales platform for online retail stores. Understanding the basic principles of how it works is key to learning ecommerce.
- Training Options – you can train via various routes. A2X offer training as part of their Partner programme, which can be done online and is free to learn. There are also online courses on Udemy and YouTube. We offer one-to-one specialist training for bookkeepers to explain the principles and mechanics of ecommerce. Refer to our training page for more information or get in touch to find out more!
Time & Experience
You can complete online courses and partner programmes in a matter of months, which will give you the certifications you need. Then, its a case of the more experience you can get, the better. Working as an outsourcer for bookkeeping and accounting firms who work with ecommerce clients is a good option and will give you the opportunities to learn.
Communities & Resources
Ecommerce is a growing trend.
Be part of our community and sign up to our newsletter or follow us on LinkedIn to receive news, tips, updates and general know-how on how to be a ecommerce specialist!
There are also groups and forums on Facebook, LinkedIn and AccountingWEB which are great support for those working and learning in this area.
Good luck and stay in touch to find out more!s
