Why does Flipwise report a different amount for Gross Income than eBay?

You might notice slight differences between the gross income amounts that Flipwise shows for your eBay sales and the numbers reported by eBay. This happens because eBay uses many different formulas to calculate gross income depending on where you look. In fact, eBay has 3 main reporting tools — the Sales performance report, the Finance report, and the Tax report — and each uses a different formula for gross sales. This means eBay's gross sales numbers often don’t match across its own reports!

For simplicity and consistency, Flipwise uses a single formula to calculate gross sales, which is the same formula that eBay uses for its annual Tax report. Here’s how Flipwise defines gross income:

• Total sale amount plus buyer paid shipping and handling for each order
• All revenue from non-canceled orders is included, even for orders that were partially or fully refunded
• Revenue from canceled orders that were refunded is excluded
• Buyer paid sales tax is excluded

So the gross sales number reported by Flipwise will likely not match the eBay sales performance report or the eBay Financial report, but it will match the eBay end-of-year Tax report.

Why does the Flipwise show a different amount for gross eBay sales than eBay's Tax report?

However, eBay’s 1099 Tax report may show a slightly different gross income than Flipwise due to how eBay processes its tax calculations. eBay determines annual gross income using an internal "payment processing date" for each order. This date may not align with the order date or transaction date, which means that a seller’s 1099 annual gross income may actually include certain orders placed at the end of the prior tax year, and omit certain orders placed at the end of the current tax year.

Flipwise, on the other hand, calculates gross income based on the order date and tracks all other revenue using the transaction date. This approach provides sellers with a clear and consistent view of their income, tied directly to the actual timing of their sales and transactions, making it easier to analyze performance trends and maintain accurate records for financial planning throughout the year. While minor discrepancies with eBay’s 1099 report may occur due to timing differences, Flipwise’s method ensures transparency and consistency in reporting.