Creating High-Converting Listings for New Sellers on Shopify 

Introduction

Just launched your Shopify store in 2025? Your product listings are more than just descriptions they’re your first salesperson, your brand message, and your conversion engine.

But most new sellers make the mistake of writing plain listings without strategy resulting in low sales, high bounce rates, and no customer trust. Even worse? Poor listings often lead to misreported income, refund confusion, and IRS trouble if your tax records don’t match.

This blog teaches you how to create high-converting, tax-compliant listings that drive sales and keep your business audit-proof.

IRS Tax Code References

• IRC §162 – Deductible business and marketing expenses
• IRC §6050W – Reporting Shopify sales via 1099-K
• IRC §263A – Inventory capitalization rules
• IRC §6001 – Recordkeeping of content creation and product expenses

Relevant IRS Forms

• Schedule C (Form 1040) – To report income and deduct listing-related expenses
• Form 1099-K – Issued by Shopify Payments in 2025 if sales exceed $600
• Form 4562 – To depreciate expensive tools used in listing production (camera, lighting)
• Form 1040-ES – For paying estimated quarterly taxes on self-employed income

Example: New Seller Building Better Listings

Example: Julia launches a handmade jewelry store on Shopify in 2024. At first:

• Her listings were basic and lacked product benefits
• Sales were flat and bounce rate high
• She hired a photographer, copywriter, and invested in a lightbox for photos
• Her sales jumped 40% in 3 months
• She deducted copywriting, design, and studio equipment under IRC §162

Result:
Julia’s store hit $60,000 in sales in 2024. In 2025, she receives a Form 1099-K, files Schedule C, and deducts her listing costs while remaining IRS-compliant.

Step-by-Step Guide to Crafting High-Converting Listings in 2025

1. Lead with Benefits, Not Features
   Instead of: “Leather-bound 8×10 notebook”
   Try: “Boost focus with this premium leather notebook ideal for journaling and planning.”
2. Use Keywords That Match Buyer Intent
   Shopify doesn’t have a native search engine like Amazon, so use long-tail keywords that people use on Google or TikTok. Tools like Ubersuggest or Google Trends help.
3. Add High-Quality Product Photos
   Use at least 5 images per listing: white background, in-use, size reference, detail close-up, and lifestyle shot. Deduct photo equipment and editing costs under IRC §162.
4. Include Short Video Demonstrations
   Video improves conversion rates by over 40%. Showcase use cases, unboxings, or behind-the-scenes footage.
5. Write Bullet-Style Descriptions
   Make it easy to skim. Break down features, benefits, what’s included, care instructions, and who it’s for.
6. Add Social Proof Where Possible
   Even as a new store, include screenshots of early reviews, testimonials from friends, or “as seen on” mentions if available.
7. Track Spending on Listing Creation
   If you hire freelancers for product copy, photography, or ad creatives, track and deduct these as marketing expenses.
8. Use Apps to A/B Test Your Listings
   Apps like Neat A/B Testing or GemPages let you test layout, copy, and CTA placement to optimize conversion.
9. List Inventory Correctly for Tax Compliance
   Make sure what’s listed matches what’s in your inventory. Overstated listings can cause incorrect COGS and tax mismatches.
10. Maintain Audit-Proof Records
    Save invoices for equipment, freelancer contracts, media licenses, and any tool you use for listings (like Canva or Lightroom). These are deductible and may be requested by the IRS.

Conclusion

Your product listing isn’t just text on a page it’s your silent salesperson. For new Shopify sellers in 2025, a strong listing equals more sales, fewer returns, and clean tax records. Whether you’re bootstrapped or outsourcing creatives, investing in conversion is always deductible and always worth it.

Write smarter. Sell faster. Stay compliant.

Call to Action

Need help turning your Shopify listings into high-converting, tax-compliant assets?

Book a strategy session with Anshul Goyal, CPA, EA, FCA
He’s helped new Shopify sellers:

• Deduct listing expenses properly
• Reconcile Shopify 1099-Ks
• Track COGS and design costs accurately
• Build audit-proof records for product photos and videos
• File self-employment taxes as a new online business owner

Schedule your 1-on-1 now: https://calendly.com/anshulcpa/
You build. We make sure it scales compliantly.

About Our CPA

Anshul Goyal, CPA, EA, FCA
Anshul brings 15+ years of U.S. and international tax experience. He specializes in helping online sellers, foreign founders, and U.S. residents with IRS and multi-state compliance. Known for his deep knowledge in Shopify and Amazon seller tax strategy, Anshul has helped hundreds of entrepreneurs minimize taxes and scale legally.

Disclaimer

This blog is for informational purposes only and does not constitute legal or tax advice. Please consult a qualified tax professional regarding your individual tax situation.

Top 5 High-Searched FAQs for 2025

1. Can I deduct costs related to product listings?
Yes. Copywriting, photography, editing software, and video creation are deductible under IRC §162.

2. What happens if I underreport income from Shopify listings?
If your reported income doesn’t match your Form 1099-K, it may trigger an audit or IRS notice.

3. Do I need to track each listing’s revenue?
No, but tracking per SKU or product line helps calculate COGS and profitability more accurately.

4. Is A/B testing software deductible?
Yes. It falls under tech or marketing expenses.

5. Can I claim losses if listings don’t convert and products are unsold?
Yes. Unsold inventory is tracked under IRC §263A, and business losses may reduce taxable income.