How much is Amazon keeping in reserve?
I am due to start having a reserve soon. I have no idea how much Amazon are going to keep back.
Is there anyone here who is mainly FBA and has a reserve? What kind of percentage turnover are they keeping back?
Thanks
11 replies
Seller_hOZNPw7G8FIjl
I assume it's DD+7 - so all funds are kept in reserve until the last estimated delivery date.
Seller_ZOZTdubuqFBLp
To be honest I dont know for sure but....judging by the posts I read here DD+7 is a pipe dream. I understand (from what I have read here) that the reserve is based on DD+7 + a calculation for returns/refunds + a calculation based on ANY late deliveries.
To my mind the worst part of this process is that there is zero explanation from Amazon as to how the reserve is calculated other than 'its an algorithm' no help when trying to plan a cash flow. Even less help when trying to dispute late dispersements.
Of course we must remember that whatever the actual 'disbursement available' date is it is still 5 days earlier than funds arrive in the bank account. So at best DD+7 will equate to 10/12 days
From a cash flow perspective I have to assume the worst case so I work on a 21 day cycle for funds to hit my account which for online retail sales is just crazy.
It would be very interesting to know if any sellers are actually seeing the DD+7 date
I am lucky my reserve kicks in in September.
Seller_TPIOEOTWi8h1m
To much, then they will offer you a loan at crazy interest rates
Seller_FQHkqHJI5SqTh
I am. Initially bases the pay out on the estimated delivery date, then updates after the order has been delivered. Seems to be an advantage of using Tracked 24/48.
Receiving funds in 3 days after disbursing.
Seller_lmJOjF6JybyzB
I asked seller (un)support(ive) if they could explain how the reserve related specifically to my recent payments. It was like speaking to a brick wall.
Completely given up on getting anything out of them that makes sense.
Seller_YiT9fvuzMzaTg
Do you see this amount in Account Level Reserve or in Deferred Transactions?
If it's the Account Level Reserve part, then at some point you'll be migrated over to the new way of them recording this amount. This will have the transaction date and payment release date (payment date is typically 7 days on from the transaction date, which is when you would've received the money if it weren't for the DD+7 Day policy).
Fact of the matter with this policy is that on the assumption your sales were consistent across the year, Amazon are effectively keeping 1 weeks worth of sales from you, always. The only way you'd get it down to £0 is if you were to stop selling.
Likewise if you have a huge increase in sales, your Deferred Transaction total amount would be much higher than average.
Seller_1O3FoOeIpwuQ6
We've been on FBA for the last 8 years or so. The amount withheld on reserve for UK FBA DD+7 normally equates to just under 2 weeks' payout.
