As an Amazon seller, one of the most crucial aspects of managing your business is ensuring a steady cash flow. However, navigating the Amazon seller payment schedule can often feel unpredictable and frustrating.
While many sellers report receiving payments from Amazon every 14 days, there are instances when Amazon holds the funds for various reasons, creating challenges for your business. Furthermore, even if Amazon does release your payment, there's no guarantee you'll receive the full amount on time.
In this comprehensive guide, we'll dive deep into the Amazon seller payment schedule, including how it works, why delays happen, and strategies you can use to expedite your payments. With this information, you can gain better control over your cash flow and business operations.
Read more:
Step-by-Step Guide to Setting Up Your Amazon Store
How to Register as an Amazon Seller: A Detailed Step-by-Step Guide
What Are the Standard Amazon Seller Payment Terms?
Amazon’s payment schedule typically adheres to a bi-weekly system for Professional Sellers. This means sellers are paid every two weeks for orders that are at least 7 days past the estimated delivery date. Amazon incorporates this 7-day buffer to allow buyers ample time to inspect their orders and issue refunds if needed.
This buffer period means Amazon sellers experience delays in receiving full payment compared to traditional retail stores, which often pay more quickly.
In some cases, payment delays may exceed the standard 14-day period. Such delays can happen if the timing of an order’s delivery is close to the payout date, or if the transfer processing takes longer than expected. If an order is delivered within 7 days of the payout date, the remaining balance will be transferred in the next payment cycle. Additionally, because Amazon uses ACH (Automated Clearing House) transfers, it may take 3 to 5 business days for funds to appear in your bank account.
Note: Amazon can also withhold all or part of your payment for more than 14 days due to an account-level reserve.
How Does the Amazon Seller Payment Schedule Work?
The Amazon seller payment process relies on ACH transfers, which are typically not same-day transfers. After initiating a transfer, it may take 5-6 business days for the funds to reflect in your bank account, on top of Amazon’s 14-day payout cycle. In total, this could mean a wait time of 20-21 days from the order's delivery to the funds appearing in your account.
When the payment appears in your bank account, it may come with different labels depending on the nature of the transaction:
- Amazon Payments, Inc.: Used when a customer pays before receiving the shipment (e.g., payments made via net banking or credit cards).
- Amazon Services LLC: Used when a customer pays after receiving the shipment (e.g., payments made through Cash on Delivery).
Do Amazon Sellers Get Paid Immediately?
No seller is paid instantly by Amazon. However, if you are a well-established seller with a proven track record (e.g., 10 years of successful sales), you might qualify for next-day payouts. These faster payouts can help mitigate cash flow issues, but they are generally reserved for top-tier sellers with a strong history on the platform.
Amazon Daily Payouts and Next-Day Payouts: What You Need to Know
Although Amazon’s standard seller payment schedule typically operates on a 14-day cycle, there are options available for sellers who need faster access to their earnings. These options, known as Daily Payouts and Next-Day Payouts, can significantly improve cash flow and help accelerate business operations. Let’s explore both options in more detail.
Daily Payouts
Despite what the name might suggest, Daily Payouts do not mean Amazon will automatically send payouts every single day. Instead, this feature allows sellers to manually request a payout through the "Request Transfer" button on their Seller Central payment dashboard.
However, it's important to understand that Daily Payouts are not instantaneous. When a seller uses the "Request Transfer" button, Amazon initiates a payout for the funds that are already available in the seller’s account. These available funds typically include the sales from orders that were processed and delivered 14 days ago. Essentially, sellers can request payouts on the funds that are available from previous sales, but it still follows the Amazon seller payment schedule.
While this does offer some flexibility, the payout is not in real time, meaning there can still be delays based on the available funds and the system’s processing time.
Next-Day Payouts
Next-Day Payouts are a more advanced option for sellers looking for faster access to their funds. However, not all sellers qualify for this accelerated payout method, as it comes with specific eligibility criteria.
To be eligible for Next-Day Payouts, sellers generally need to meet one of the following conditions:
- Experienced Seller Account: If you have a long-standing seller account, particularly one that has been active for over 10 years, you may qualify for Next-Day Payouts as a benefit of your track record and reputation on the platform.
- Third-Party Instant Access Solutions: Newer sellers or those not eligible for direct Next-Day Payouts can partner with Third-Party Instant Access Solutions like Razorpay. These services facilitate fast payouts by purchasing receivables from Amazon on behalf of the seller, making a portion of the funds available on the very next business day.
For example, let’s say you generate $1,000 in sales on a Monday. With Next-Day Payouts, a solution like Razorpay would allow you to access $800 of that amount by Wednesday, while retaining the remaining $200 to cover potential returns, replacements, or chargebacks. This remaining balance would then be paid out according to the normal Amazon seller payment schedule.
This system helps you get paid faster, manage cash flow more effectively, and reinvest in inventory or other business needs without waiting for the traditional payout cycle.
Advantages of Next-Day Payouts
Opting for Next-Day Payouts through Amazon or third-party services can be a game-changer for your business, especially when dealing with high-volume sales. Here are some of the key benefits:
- Improved Cash Flow: By receiving your payouts faster, you can invest in inventory replenishment and other business expenses sooner, which can help your business grow.
- Quicker Inventory Turnover: Fast access to funds means you can move more stock and take advantage of business opportunities without waiting for payments to clear.
- Enhanced Business Growth: With faster access to funds, you can scale your operations more efficiently, allowing for quicker responses to market demand and customer needs.
How to View Your Amazon Seller Payment Schedule
To track your Amazon seller payments, you can access the Payment Dashboard in your Seller Central account. This dashboard provides a clear overview of your earnings, payment dates, and any available balances. Additionally, the Payments Report is automatically updated with your payment details, offering a comprehensive breakdown of how much you’ll be paid and when.
How Long Do Amazon Seller Payments Take?
The time it takes for Amazon to process seller payments depends on several factors, including the Amazon seller payment schedule. Typically, Amazon holds payments for a period of 14 days after each transaction before disbursing them to sellers. This delay allows Amazon to ensure that orders are processed, returns and chargebacks are accounted for, and that the funds are legitimate.
Within the Payments Report, you’ll also see a section labeled Account Level Reserve. This is an amount that Amazon holds in reserve to cover potential chargebacks, returns, refunds, and any other issues that may arise after the sale. This reserve helps Amazon manage risks and maintain a smooth payment process for both sellers and buyers.
What Is an Amazon Account-Level Reserve?
The Amazon Account Level Reserve serves as a safety net, ensuring that Amazon can handle unforeseen circumstances such as chargebacks, returns, or refund requests that might occur after the product has been delivered. This reserve is part of Amazon’s strategy to protect both the platform and its sellers.
Previously, when Amazon did not hold funds in reserve, scammers could exploit the system by offering low-cost products with long delivery times. After receiving payment, these fraudulent sellers would disappear before Amazon could take action, leaving customers frustrated. To mitigate these risks, Amazon introduced the Account Level Reserve to safeguard against such fraudulent behavior.
Here are some reasons Amazon might hold a reserve in your account:
- Open A-to-Z Guarantee claims.
- Low seller performance or complaints.
- Chargebacks on your orders.
- Errors in your payment information or bank account.
- Local tax regulations in your selling region.
By keeping a portion of the funds in reserve, Amazon can also address these issues efficiently without impacting the overall seller payment schedule.
Amazon’s Reserve Tiers
The amount Amazon sets aside in reserve is determined by several factors, including your account’s age, performance metrics, and transaction history. These factors contribute to the Reserve Tier that Amazon assigns to your account. Understanding your tier can help you manage your payment expectations and ensure smooth financial operations.
Reserve Tier Eligibility and Amounts
Tier I: For new sellers
- Reserve Amount: 100% of payments processed in the past week
- Eligibility: New sellers with little to no transaction history.
Tier II: For sellers with more established accounts
- Reserve Amount: The higher of 3% of daily processed payments (averaged over the past 28 days) or the total value of unresolved transaction disputes.
- Eligibility: Sellers with at least 100 completed orders and a year of selling experience, or those who have maintained an Order Defect Rate (ODR) below 1% for at least six months.
Tier II-Plus: For highly trusted sellers
- Reserve Amount: The total value of unresolved transaction disputes.
- Eligibility: Sellers in Tier II who have maintained an ODR below 1% for at least 60 days.
How to Avoid Account-Level Reserve
While it’s not always possible to entirely avoid the Account Level Reserve, you can take proactive steps to reduce the likelihood of having one imposed on your account. Here are some key strategies:
- Regularly audit your seller performance and ensure it meets Amazon’s high standards.
- Respond to customer disputes and feedback promptly to maintain positive seller metrics.
- Follow Amazon’s fulfillment guidelines closely to avoid shipping mistakes and delays.
- Offer high-quality products and provide excellent customer service.
- Optimize your shipping process to ensure timely deliveries and minimize customer complaints.
- Maintain an ODR below 1%, which signals to Amazon that your account is well-managed and trustworthy.
By adhering to these best practices, you can reduce the chances of having a reserve placed on your account, ensuring that you receive your payments according to the standard Amazon seller payment schedule.
How Can I Get Amazon Seller Payouts Faster?
Amazon has introduced Express Payout to help sellers get their money more quickly. This feature allows eligible sellers to receive their payments in as little as 24 hours, instead of the usual 5-day waiting period.
Who Can Use Express Payout?
To take advantage of Express Payout, sellers must meet the following criteria:
- U.S.-based Account: Sellers must have an account with a U.S. bank that is part of Amazon’s payment network.
- Location: Only sellers residing in the 50 U.S. states are eligible for this feature (sellers in U.S. territories are excluded).
- Transaction Limit: Sellers with $1 million or fewer in transactions at the time of payment initiation are eligible for Express Payout.
If you meet all these requirements, you can activate Express Payout by visiting the Deposit Methods page in Seller Central. From there, you can enable the service for faster payouts.
Is There a Fee for Express Payout?
Currently, Express Payout is available free of charge until September 2023 as part of a promotional period. After this, a small fee of 50 cents will apply per transaction.
Which Payouts Are Affected?
Once you sign up for Express Payout, all your payouts, including Amazon’s scheduled payouts and manual payouts, will be processed through this service. Note that only U.S.-based bank accounts that are part of Amazon's network will work with Express Payout.
Opting Out of Express Payout
If you decide to opt out of Express Payout, your payments will revert to the Standard Payout method, which uses ACH (Automated Clearing House) and typically takes 3 to 5 days to complete.
Why Haven’t I Been Paid Yet?
There are several common reasons why Amazon might withhold your payment:
- New Seller Account: If you’re a new seller, Amazon requires an initial 30-day waiting period before releasing payments. After that, your payment schedule follows the regular 14-day cycle.
- Incorrect Bank Information: Ensure your bank account details are accurate in Seller Central. Incorrect information can delay your payments.
- Prohibited Payment Systems: If you've linked non-compliant payment systems like PayPal, Amazon may delay your payouts.
- Negative/Zero Account Balance: If your Amazon account balance is negative or zero, your payment may be delayed until the balance is cleared. Review your account for any outstanding fees or reimbursements that need addressing.
If none of these issues apply and your payment is still on hold, you can contact Amazon Seller Support for assistance.
How to Stay Ahead of the Amazon Seller Payment Schedule
As an Amazon seller, managing your cash flow is crucial. While Amazon’s payment schedule is reliable, there are times when delays may occur. To ensure a steady flow of funds, here are a few strategies to stay ahead:
1. Stay Updated on Your Numbers
To avoid surprises, it’s essential to keep track of your finances. Use analytics platforms like SellerApp to monitor key metrics like sales trends, inventory KPIs, and order behavior. This data helps you forecast future performance and understand potential delays in Amazon seller payments.
2. Build a Safety Net
Consider setting aside a cash reserve to bridge the gap during times of delayed payments. By transferring a percentage of your earnings to a separate account each month, you’ll have an emergency fund to rely on without disturbing your regular cash flow.
3. Adopt Multichannel Selling
Don’t rely solely on Amazon. Selling on multiple platforms can diversify your income sources and provide multiple payment schedules. Research shows that businesses that sell on multiple marketplaces generate 190% more revenue than those relying on just one. Expanding your sales channels ensures you’re not dependent on Amazon’s payout cycle alone.
4. Tap Into Your Support Network
If a cash flow gap arises, consider reaching out to family, friends, or other business owners who might be willing to lend you money. Be sure to set clear repayment terms and maintain a formal agreement to ensure fairness.
5. Harness the Power of Business Credit Cards
A business credit card can be an effective short-term solution to cover gaps in cash flow. Look for cards that offer 0% balance transfers or cashback rewards. This can help you manage payments while you wait for Amazon's next payout.
6. Explore Traditional Bank Loans
If your business qualifies, consider applying for a traditional bank loan. While e-commerce businesses may face some challenges when securing loans, it’s an option worth exploring. Be sure to shop around for reasonable interest rates and favorable loan terms.
Conclusion
To manage your Amazon seller payment schedule effectively, staying informed about your payments and planning ahead is key. By leveraging services like Express Payout, optimizing your cash flow strategies, and exploring alternative income streams, you can minimize the impact of payment delays and keep your business running smoothly.
