What expense category is Amazon Marketplace?
Amazon Marketplace — online retail platform for purchasing goods from third-party sellers and Amazon directly.
Amazon Marketplace is Amazon's e-commerce platform where businesses can purchase supplies, equipment, and other goods from millions of third-party sellers alongside Amazon's own inventory. For businesses, it commonly serves as a procurement channel for office supplies, electronics, tools, and other operational necessities. Expenses here are typically product purchases rather than a service fee, so tax treatment depends on what was bought — supplies, equipment, or inventory.
How businesses classify Amazon Marketplace
Tax details
- Save your Amazon order confirmations and categorize each purchase by item type — office supplies, equipment, or inventory — since tax treatment differs per category.
- For equipment purchases over $2,500 (e.g., computers, cameras), treat as a capital expenditure eligible for Section 179 expensing rather than a general supply expense.
- If purchasing inventory for resale via Amazon Marketplace, those costs are recorded as Cost of Goods Sold (COGS), not a deductible operating expense.
- Enable Amazon Business account features to receive itemized invoices and tax-exempt purchasing options, which simplify bookkeeping.
- Flag any personal purchases made through a business account — only business-purpose items are deductible, and mixed-use orders must be split appropriately.
Business insights
Related expenses
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