December 23, 2024

Intuit Inc. President and CEO Sasan Goodarzi and Amazon CEO Andy Jassy.

David Paul Morris | David Paul Morris Bloomberg | Getty Images

Amazon For years it has relied on millions of third-party sellers to provide much of the inventory consumers buy. But tracking finances has long been a challenge for outside merchants, especially small mom-and-pop businesses.

Amazon said on Monday it was working with Intuit The software company’s online accounting tools will be introduced to its vast network of sellers by mid-2025. Intuit QuickBooks will be available on Amazon Seller Central, the hub sellers use to manage their Amazon businesses, the companies said. Qualified sellers can also get loans through QuickBooks Capital.

“We are working with Intuit to provide our sales partners with additional financial tools and capital support to help them scale effectively,” Dharmesh Mehta, Amazon’s vice president of global sales partner services, said in a joint statement.

Sellers will have instant access to the financial health of their business, with a clear understanding of profitability, cash flow and tax estimates, the companies said.

While the Intuit integration isn’t expected to go live until the middle of next year, the news comes as sellers ramp up business for the holiday season, the busiest time of year for most retailers.

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

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

In the third quarter, seller services revenue increased by 10% to $37.9 billion, accounting for 24% of total revenue. This number has grown steadily in recent years. “[Third-party]demand remains strong and unit sales are strong,” Amazon Chief Executive Andy Jassy said on the earnings call.

Amazon’s shares are up nearly 50% this year, climbing to a new record on Friday and outpacing the Nasdaq’s 31% gain this year. Meanwhile, Intuit has lagged the broader technology index, with its shares rising less than 4% in 2024.

On November 19, Intuit shares fell 5% washington post Reports say President-elect Trump’s government efficiency team is considering creating a free tax filing app. Three days later, the company released a revenue forecast for the quarter that fell short of analysts’ expectations as some sales were delayed, sending shares down nearly 6% three days later.

QuickBooks is particularly popular as an all-in-one accounting, expense management and payroll tool for small businesses and has been one of the key drivers of Intuit’s growth. The company said in November that its QuickBooks online accounting business grew 21% in the latest quarter, with total revenue rising 10% to $3.28 billion.

Intuit has been adding generative artificial intelligence tools to QuickBooks and other small business services, such as its Mailchimp email marketing product, to provide users with more automated insights.

“As you can imagine, going forward, our goal is to create experiences tailored to you across the entire platform, across Mailchimp and QuickBooks, and across all services,” Intuit CEO Sasan Goodarzi said of the fiscal first-quarter earnings report.

Goodarzi said in a press release on Monday that the company is launching “an expert platform powered by artificial intelligence to help sellers increase revenue and profitability, save time and grow with confidence.”

watch: The margin story is the biggest support for Amazon

Rosenblatt's Barton Crockett says margin story is biggest support for Amazon

About The Author

Leave a Reply

Your email address will not be published. Required fields are marked *