Net proceeds & reserve
Good morning,
Could someone please explain the difference between my account level reserve and net proceeds? I do actually understand the difference, but if I have money being held in reserve for returns, etc. then why are my net proceeds unavailable for payout immediately? I use express payout but my available funds stays at zero or gives me very small dollar amounts as payouts, even though I have money in my net proceeds. It seems if that money is not in my reserve and being held then it should be readily available to me. I just don’t get it. It’s like having two reserve accounts. ??
Net proceeds & reserve
Good morning,
Could someone please explain the difference between my account level reserve and net proceeds? I do actually understand the difference, but if I have money being held in reserve for returns, etc. then why are my net proceeds unavailable for payout immediately? I use express payout but my available funds stays at zero or gives me very small dollar amounts as payouts, even though I have money in my net proceeds. It seems if that money is not in my reserve and being held then it should be readily available to me. I just don’t get it. It’s like having two reserve accounts. ??
1 reply
Seller_4zBzdtgCyS9EI
Amazon may hold your payment for 14-30 days,, as an “account level reserve.” This is normal for new accounts.
The reserve amount is determined by various things. These include how long you’ve had your account and if you have any unresolved disputes.
However, Amazon may also hold funds for up to 90 days!
This usually occurs, when they believe there is a possibility of fraud, or when a seller has previously broken Amazon’s policies.
Note: you may not be aware yet, that you are, or have violated policy, Amazon is.
The percentage of funds that Amazon holds depends on the seller’s situation. However, if they keep everything, or almost everything, something raised red flags.
It is likely at any given time your account will be suspended, and supply chain evidence, LOA's, as well as invoices will be requested.
If you cannot provide proper invoices, your inventory will be destroyed and funds confiscated.
Here are the most common reasons why Amazon puts reserves on seller accounts:
- A-to-Z Guarantee Claims
- Negative product reviews and seller feedbacks
- High return rate, seller faulted
- Charge backs
- Account Reviews
- Performance issues
- Product Authenticity/sourcing issues
What can you do?
-Improve Your Account Health and Performance
To increase the likelihood of getting your money faster, you should focus on providing great customer service, following all policies,
Sourcing from brand approved B2B distributors with a letter of authorization from the brands you sell
-Diversify Your Sales Channels
Consider selling on other platforms such as eBay, Etsy, or your website to diversify your income streams and reduce the impact of Amazon’s policy on holding funds.
- Always Plan for Cash Flow Issues as Amazon seller
