Finance

Amazon partnering with Intuit Quickbooks for third-party sellers

Published

5 months ago

December 9, 2024

Business Finance News

Sasan Goodarzi, president and CEO of Intuit Inc. and Andy Jassy, CEO of Amazon.

David Paul Morris | Bloomberg | Getty Images

Amazon has for years counted on millions of third-party sellers to provide the bulk of the inventory that consumers buy daily. But keeping track of their finances has long been a challenge for outside merchants, particularly smaller mom-and-pop shops.

Amazon said on Monday that it’s partnering with Intuit to bring the software company’s online accounting tools to its vast network of sellers in mid-2025. Intuit QuickBooks will be available on Amazon Seller Central, the hub sellers use to manage their Amazon businesses, the companies said. Eligible sellers will also have access to loans through QuickBooks Capital.

“Together with Intuit, we’re working 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 release.

While the Intuit integration isn’t expected to go live until the middle of next year, the announcement comes as sellers ramp up their businesses for the holiday season, the busiest time of the year for most retailers. The companies said that sellers will see a real-time view of the financial health of their business, getting a clear picture of profitability, cash flow and tax estimates.

Representatives from both companies declined to provide specific terms of the agreement, including how revenue will be shared.

The marketplace is a critical part of Amazon’s retail strategy. In addition to accounting for about 60% of products sold, Amazon generates fees from providing fulfillment and shipping services as well as by offering customer support to sellers and charging them to advertise on the site.

In the third quarter, seller services revenue increased 10% to $37.9 billion, accounting for 24% of total revenue, a number that’s steadily increased in recent years. Amazon CEO Andy Jassy said on the earnings call that “3P demand is still strong and unit volumes are strong.”

Amazon shares are up almost 50% this year, climbing to a fresh record on Friday, and topping the Nasdaq’s 31% gain for the year. Meanwhile, Intuit has underperformed the broader tech index, with its stock up less than 4% in 2024.

The shares dropped 5% on Nov. 19, after The Washington Post reported that President-elect Donald Trump’s government efficiency team is considering creating a free tax-filing app. They fell almost 6% three days later after the company issued a revenue forecast for the current quarter that trailed analysts’ estimates due to some sales being delayed.

QuickBooks, which is particularly popular as an all-in-one accounting, expense management and payroll tool for small businesses, has been one of Intuit’s key drivers for growth. The company said last month that its QuickBooks Online Accounting segment expanded by 21% in the latest quarter, while total revenue increased 10% to $3.28 billion.

Intuit has been adding generative artificial intelligence tools into QuickBooks and other small business services, like its Mailchimp email marketing offering, to provide more automated insights for users.

“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,” Intuit CEO Sasan Goodarzi said on the fiscal first-quarter earnings call.

Goodarzi said in Monday’s release that the company is bringing its “AI-driven expert platform to help sellers boost their revenue and profitability, save time, and grow with confidence.”

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