Amazon Account Level Reserves Question
Hello,
Amazon seems to be holding on to 75% of our account balance each time we are due for a disbursement. It is not clear at all why this is the case. I understand they need to retain some funds in the event of customer charge backs, but when our balance shows as roughly £4.1k and they only release £1.1K to us and retain the remaining £3k, it seems very unusual.
We need these funds for our cash flow cycle as well.
Does anyone have any insight if this is standard practice with Amazon? In the USA and Canada I know for a fact they release the full balance on your account every two weeks. What gives that they keep 75% here in the UK?
Details of the last statement/disbursement are copied below for reference.
Beginning balance
£2,881.44
Sales
£2,135.75
Refunds
-£72.41
Expenses
-£760.33
Account Level Reserve
-£3,046.82
Net Proceeds
29/07/2021 - 12/08/2021
£1,137.63
Our account is not in any trouble or under review. This has been going on for a long time now.
7 replies
Seller_Dju0fEUswgj6t
They will release any funds gotten from sales 14 day after the last day of the estimate delivery. This is why you show a rolling reserve.
Seller_zXWyBs9Osz3wK
@Fitness_Edge is correct. Amazon will essentially hold onto 14 days worth of sales at all times. I am not aware of any accounts that differ from this policy.
Seller_64jziShTiTjOq
And how do they know they are not going to need all of that £3k for chargebacks? They don’t. The reserve holds all of your sales income for at least 7 days after delivery or the last EDD
What happens, or does not happen, in the US/Canada is irrelevant. This site is governed by the European business solutions agreement, which you accepted when you signed up to sell in the UK
You will have to adjust your cash flow cycle to allow for it, or stop selling on here
Seller_5wZQAk9T4L1mg
The amount they are holding in reserve far exceeds sales in the past 30 days let alone the past 14 days.
