As an Amazon seller, managing cash flow and ensuring timely payments are crucial to the success of your business. But how does Amazon pay its sellers?
Here are the steps for calculating payments:
- Fees for the sale
- Amount of funds on reserve
- Disbursement / Payout of earnings
Fees
Payments are disbursed based on the following fee calculation:
- referral
- storage
- advertising
- logistics
- shipping label purchases (for FBM sellers)
- FBA monthly subscription for professional sellers or individual seller transaction fees
Reserve (also called Unavailable Balance)
As a customer-centric platform, Amazon delays payments. Called account level reserve, funds are withheld until the customer:
- Has had time to receive the package
- Use the product
- Has an opportunity to return it if they have any regrets, or the item doesn’t meet their expectations.
This reserve is based on a percentage of your total sales, held back for about two weeks. It is the failsafe method for Amazon to cushion itself and to quickly weed out the bad actors who don’t fulfill orders or who send inferior quality items.
Disbursement Schedule
Most Amazon Sellers receive their disbursement payments every two weeks. And of course, add a few additional days for the deposits to reach your bank account.
Here’s a snapshot that breaks down the reserve/payout schedule for most Amazon Seller Accounts
YOU’VE MADE A SALE! (November 1st)
The order was placed on November 1st with the expected delivery date on (or before) November 13. Although your payment disbursement dates are on the 5th and 19th of each month, you will not be paid for this purchase on this payment cycle. Your funds remain in the “account level reserve”.
DELIVERED (November 9th)
Although the customer has received their order, Amazon will still not make the funds available, until the “latest” delivery date has passed.
FUNDS AVAILABLE (November 18th)
One week after the latest possible delivery date, your funds now move from “account level reserve” to the available balance.
SCHEDULED PAYOUT (November 19)
Funds from your sale can now be withdrawn. Depending on the bank, it may still take a few more days for the funds to appear in your account.
Is there A Way to Speed up the Payout?
To get paid earlier, activate the “request transfer button”. But keep in mind that every time you hit the Request Transfer button it resets your payment date for another 14 days. (And it doesn’t give you access to funds in reserve).
The reality is that the sales that you made today, could take up to a month to be deposited into your bank account. That presents cash flow problems and scalability challenges.
Problem Solved! Purchase an Amazon Daily Payout Seller Account
Accounts created around 2021 (or earlier) have been grandfathered into the “Daily Payout” program. Sellers with daily payout accounts have access to their funds each time a sale is made.
That’s a great way to get your hands on instant cash. Next-day payouts used to be the standard for Amazon sellers. Newer sellers to the platform will get payouts bi-weekly.
A daily payout account allows sellers to receive their funds on a daily basis, rather than waiting for the standard two-week payment cycle. Essentially, when a seller has a daily payout account, Amazon will deposit their earnings from the previous day into their bank account every 24 hours.
Frustrated that you don’t have an aged Amazon seller account with daily payouts? AIA Assets has the solution. We have a catalog of premium seller accounts with a variety of disbursement and payout options. Looking for a daily payout account? We have what you’re looking for!
Benefits of a Daily Payout Account for Amazon Sellers
- Improved Cash Flow: With daily payouts, you will be able to access your funds more quickly, providing a more predictable source of income.
- Increased Flexibility: Daily payouts offer more flexibility to manage finances and make business decisions based on real-time revenue data. Use those additional funds to reinvest in inventory, pay off debt, or invest in growth initiatives.
- Reduced Risk: Daily payouts can help reduce the risk of chargebacks and refunds, as funds are processed and disbursed more quickly. This can help sellers manage their cash flow and avoid potential financial issues that may arise from chargebacks or delayed payments.
With swifter access to your funds, daily payouts can help drive growth and success for your Amazon business.
Final Notes….
We understand that Amazon’s payment and disbursement schedule can be problematic for small and large businesses. But Seller accounts, grandfathered in, with daily payouts, are valuable and beneficial for a variety of reasons. If you’re looking to quickly scale your business, and you think that a daily payout account is exactly what you need, reach out to our team! We have a variety of accounts that will suit your budget and business needs.
