Nandini Roy Choudhury, writer
Brief news
- Amazon is partnering with Intuit to provide QuickBooks accounting solutions to its third-party sellers by mid-2025, aiming to enhance financial management for small businesses.
- The integration will offer sellers real-time insights into profitability, cash flow, and tax predictions, along with access to QuickBooks Capital for loans.
- Amazon’s seller services revenue has been growing, contributing significantly to its retail strategy, while Intuit’s QuickBooks continues to expand, leveraging AI for improved user experience.
Detailed news
Amazon has relied on millions of third-party vendors for thousands of years to supply the majority of the product that customers purchase from the company. Additionally, it has been a struggle for outside merchants, particularly smaller mom-and-pop shops, to maintain track of their financial information for a long time.
Amazon said on Monday that it will be forming a partnership with Intuit to distribute the online accounting solutions developed by the software giant to its extensive network of sellers by the middle of the year 2025. According to the firms, Intuit QuickBooks will be made available on Amazon Seller Central, which is the central administration platform that sellers use to administer their Amazon operations. Additionally, QuickBooks Capital will make loans available to business owners who meet the requirements.
“We are working together with Intuit to equip our selling partners with additional financial tools and access to capital to help them scale efficiently,” Dharmesh Mehta, Amazon’s vice president of worldwide selling partner services, said in the joint announcement. “We are working to help our selling partners scale the business more effectively.”
A comprehensive picture of the seller’s profitability, cash flow, and tax predictions will be provided, according to the firms, who stated that sellers will be able to obtain a real-time perspective of the financial health of their organization.
Although it is not anticipated that the Intuit connection would become operational until the middle of the next year, the announcement comes at a time when sellers are ramping up their operations in preparation for the holiday season, which is the busiest period of the year for the majority of retailers.
They declined to give precise specifics of the arrangement, including how revenue will be shared, and representatives from both corporations declined to provide this information.
At Amazon, the marketplace is an essential component of the company’s retail strategy. Along with being responsible for around sixty percent of all products sold, Amazon derives revenue through the provision of fulfillment and shipping services, as well as through the provision of customer support to sellers and the charging of sellers for advertising on the website.
Over the course of the past several years, the percentage of overall income that is accounted for by seller services has been continuously growing. In the third quarter, seller services revenue climbed by 10% to stand at $37.9 billion. Mr. Andy Jassy, the Chief Executive Officer of Amazon, stated on the results call that “[third-party] demand is still strong and unit volumes are strong.”
The shares of Amazon have increased by almost fifty percent so far this year, reaching a new high on Friday and surpassing the Nasdaq’s gain of thirty-one percent for the year. As a result, Intuit’s stock has increased by less than 4% in 2024, which is lower than the overall performance of the technology index.
Following a story by The Washington Post on November 19, which stated that President-elect Donald Trump’s government efficiency team is contemplating the creation of a free tax-filing app, Intuit shares experienced a decrease of five percent. Almost three days later, after the company had published a revenue forecast for the current quarter that fell short of the estimates of analysts due to some sales being delayed, they experienced a decline of almost six percent.
One of the primary factors that has contributed to Intuit’s expansion is QuickBooks, which is particularly well-liked among small businesses because it serves as an all-in-one accounting, spending management, and payroll tool. According to a statement released by the company in November, the QuickBooks Online Accounting division experienced a growth of 21% during the most recent quarter, while the overall revenue climbed by 10% to reach $3.28 billion.
An increasing number of automated insights are being made available to users by Intuit through the incorporation of generative artificial intelligence capabilities into QuickBooks and other small company services, such as the email marketing product that is provided by Mailchimp.
“You can imagine, as we look ahead, our goal is to create a done-for-you experience across the entire platform, across Mailchimp and QuickBooks and all of the services,” said Sasan Goodarzi, CEO of Intuit, during the earnings call for the first quarter of the fiscal year.
In a press release issued on Monday, Goodarzi stated that the company is introducing its “AI-driven expert platform to assist sellers in increasing their revenue and profitability, saving time, and growing with confidence.”
Source : CNBC news
