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If I had 45 units that were randomly placed into my Amazon inventory that I did not pay for, How do I report that? Do I report the value at what it sold at?

these units were freely placed into my inventory and sold under my account. How should I report this?

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8 Replies

If I had 45 units that were randomly placed into my Amazon inventory that I did not pay for, How do I report that? Do I report the value at what it sold at?

45 units of what exactly?

If I had 45 units that were randomly placed into my Amazon inventory that I did not pay for, How do I report that? Do I report the value at what it sold at?

tupperware package. I bought 36 units myself at around a $9.80/piece. The other 45 units were someone else's I guess.  
 

If I had 45 units that were randomly placed into my Amazon inventory that I did not pay for, How do I report that? Do I report the value at what it sold at?

Then you need to contact Amazon to have them fix this.
Hal_Al
Level 15

If I had 45 units that were randomly placed into my Amazon inventory that I did not pay for, How do I report that? Do I report the value at what it sold at?

If you acquired some  products (goods) at no cost; then you carry the inventory value as zero.  When you sell the unit, your cost of goods sold (COGS) is $0 and your gross profit is the whole sale amount.

If I had 45 units that were randomly placed into my Amazon inventory that I did not pay for, How do I report that? Do I report the value at what it sold at?

So as an example, say if the whole sale value was 9.99 and the price point for the customer was $14.99.  $5.00 would be the gross profit, then in total $5.00 for 45 units would be $225.00, Correct??? and report that $225?

If I had 45 units that were randomly placed into my Amazon inventory that I did not pay for, How do I report that? Do I report the value at what it sold at?

Wait thats not right
Hal_Al
Level 15

If I had 45 units that were randomly placed into my Amazon inventory that I did not pay for, How do I report that? Do I report the value at what it sold at?

The wholesale value is irrelevant. What matters is your actual cost, what you paid. in this case you paid 0. Your gross profit for 45 units is: ($14.99 - 0) x 45 = $675.

But  most  people do it this way: you bought 36 units at $9.80 and 45 at $0.  Your inventory cost is  36 x 9.80 = $352.80. $352.80 / (45 +36) = $4.36 per unit.

If I had 45 units that were randomly placed into my Amazon inventory that I did not pay for, How do I report that? Do I report the value at what it sold at?

"The other 45 units were someone else's I guess."
I interpreted this to mean that Amazon made a mistake, as these never should never have been in OP's account, and OP needs to know how to correct it.

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