The net amount a marketplace or payment processor transfers to a seller's bank account after deducting all fees, refunds, and reserves from gross sales.
Understanding Payout
A payout is the net amount of money a marketplace or payment processor transfers to a seller's bank account after deducting all applicable fees, refunds, reserves, and adjustments from gross sales. Payout schedules and amounts vary by platform.
Amazon typically pays every 14 days; Shopify pays daily, weekly, or monthly depending on the plan; Stripe pays on a rolling 2-day basis; PayPal makes funds available immediately. The payout amount rarely matches gross sales because of fee deductions, which is why reconciling payouts against settlement reports is necessary.
Some platforms also withhold a reserve — a percentage of sales held back to cover potential refunds or chargebacks — which further reduces the payout amount. New sellers or sellers with high chargeback rates may have larger reserves.
Why It Matters for Ecommerce
Ecommerce sellers often mistakenly record the payout deposit as their revenue, which dramatically understates their gross sales and expenses. Proper accounting requires recording the full gross revenue, the fees as expenses, and the payout as the net cash received. This distinction is critical for accurate tax reporting and financial analysis.
Practical Example
Your Stripe account processes $10,000 in weekly sales. Stripe deducts $320 in processing fees (2.9% + $0.30 per transaction) and holds a $500 reserve. Your payout is $9,180. In your books: Debit Cash $9,180, Debit "Stripe Fees" $320, Debit "Stripe Reserve" $500 (asset), Credit "Sales Revenue" $10,000.
Related Terms
Settlement Report
A periodic report from a marketplace or payment processor that summarizes all transactions, fees, refunds, and the net amount deposited into a seller's bank account.
EcommerceMarketplace Fee
A general term for any fee charged by an ecommerce platform for facilitating a sale, including referral fees, closing fees, and payment processing fees. Directly reduces a seller's net payout.
EcommercePayment Gateway
A service that authorizes and processes credit card and digital payments for online transactions. Acts as the intermediary between the customer's bank and the merchant's bank.
Put This Knowledge Into Practice
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