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What is Amazon Account Level Reserve?

February 14, 2024
amazon seller account level reserve

What is Amazon Account Level Reserve?

Sellers on their website, or at a physical storefront, register payments immediately after a customer makes a purchase. Amazon, the most customer-centric marketplace, holds back payouts to cover chargebacks and refunds that can occur long after purchase.  Most sellers receive payouts (or disbursements) on a set schedule. Payouts/disbursements are calculated as a percentage of sales volume and generally occur every two weeks. However: Amazon holds back a percentage of these sales – called account level reserve.

As an Amazon seller, you know that Amazon holds back payments from your sales called Amazon Account Pay Reserve Policy.  On your dashboard, you will be able to find a report that will give you a snapshot of your reserve and disbursement schedule. Although this chart is far from easy to read, in this blog post we will unravel the mysteries of:

  1. Navigating payment dashboard
  2. When will you get your payouts
  3. Calculating Reserve Amounts

Note: Amazon’s reserve policy took effect in August 2016. So, ‘grandfathered’ accounts may not be subject to it, unless they’ve been suspended and reinstated in the meantime, or if a professional account has gone ‘dormant’ and become an “individual”.

Amazon Seller Account Payout Schedule

Navigating the Payment Dashboard

To find out your current account status, head to Reports > Payments > Statement View. Here you’ll see a summary of Net Proceeds, balance, sales, refunds, expenses, and account level reserve.

The Chart on the payments dashboard shows the current reserve amount for every seller. This amount will fluctuate with sales volume and payment history.

disbursements Amazon seller account

For How Long Does Amazon Hold Your Money?

While this is dependent upon delivery day and order history, most sellers have a disbursement schedule of about two weeks. Funds are usually available for withdrawal one week after the delivery of an item. The RESERVE is based on the following calculation:

  • Seller Metrics (seller standing, seller feedback, and number of orders)
  • Seller Feedback
  • Amount of time selling on Amazon
  • Sales volume

Amazon Account Level Reserve Calendar (example)

Why is There an Account Level Reserve on the Amazon Seller Account?

  1. Do you have A to Z claims? The funds to cover open A to Z claims will stay in reserve until they have been resolved (may take up to 14 days to process)
  2. Do you have Chargebacks? Amazon will hold onto chargeback claims for up to 90 until those claims have been processed
  3. Customer Returns? Amazon will hold the funds that equal customer returns
  4. Is your account under review? If your account is under review (for any reason), the fund could be held back
  5. Order Defect Rate (ODR) falling above Amazon’s metric? Amazon may hold back funds until the ODR returns to the expected rate (under 1%)

Can you Speed the Process up?

It’s easy to understand why Amazon has implemented a reserve policy, but it can be a financial hardship to wait until funds are released. Although Amazon makes disbursement payments every 14 days, you can “manually” request a daily disbursement. Note that this time does not include any processing times your bank may have on their end. When you purchase an established account from the AIA Assets team, we can find an account that best suits your needs – which includes zero (or low reserve) and daily disbursements!

Seller Tips To Avoid An Account Level Reserve On Your Amazon Seller Account:

  1. If you’re using FBM – make sure to upload correct (and timely) tracking information
  2. Use a reliable carrier and fulfill orders promptly and accurately
  3. Respond quickly to buyer inquiries and complaints
  4. Keeping your account in good standing

Eventually, you will receive payments (according to your normal settlement schedule), which is typically 2 weeks after the reserve period ends.

Ready To Buy an Amazon Seller Account?