Understanding the question, ‘When does Amazon pay you?’ is crucial for Amazon sellers looking to manage their cash flow effectively. You picked great products to sell on Amazon, found suppliers, and created successful product listings. Now your products are starting to sell. This is all great news, but you’ll need more inventory to back it up. So, when do you get paid?
In this blog post, we’ll cover everything you need to know about the Amazon payout schedule. We’ll discuss when and how payments are made, what might cause delays, and how to offset cash flow challenges that result from payment delays. By the end of this blog post, you’ll have a clear understanding of the Amazon seller payout schedule.
When does Amazon Pay You
Make a sale, get paid, right? Well, not exactly.
Sales revenue will enter your Amazon seller account immediately, but these funds go on hold, and will only be released to your bank account every 14 days. Why?
Amazon handles the customer experience (chargebacks, disputes, etc.), so they hang on to the money a little longer. Generally speaking, you’ll wait at least a couple of weeks from the time of sale until the money hits your account. More on the cash flow implications in a moment.
How does Amazon pay sellers?
Amazon requires sellers to connect a valid bank account. It doesn’t need to be a business bank, but there are many good reasons to open one.
Every 14 days, they will disburse funds from your seller account to your checking account. If there’s an issue with the transfer, Amazon will hold your funds until it’s resolved. It will also require a three day security freeze if you switch the bank account connected to Amazon Seller Central.
It has been 14 days and you haven’t been paid. Why not?
There are several reasons why sales you made within a certain period are not released when you expect. Here are a few to consider:
- Funds on hold: Your sales revenue may still be in the holding period after shipment. In this case, you’ll have to wait for the next disbursement period to collect.
- Manual review: Amazon sometimes flags payments for manual review, which can delay the payment process.
- Insufficient funds: Your seller account must have sufficient funds to cover your payout before Amazon will release the funds to your bank account. This can result from chargebacks or other unanticipated transactions.
- Bank details: Make sure that your bank details are all correct and up-to-date in Seller Central. Amazon will hold your funds if the bank rejects the transfer, or if you enter details incorrectly.
- Tax Information: If you’re a new seller, make sure to fill out all of your tax information correctly in Seller Central so that payments can be released on time.
- Payment hold related to order issues: Amazon may put a hold on payments if there is an issue with orders placed on its platform (if there are customer disputes or chargebacks, for example).
Cash flow issues resulting from payment delays
Payment delays are a reality of selling on Amazon, and so are the resulting cash flow issues. This can be especially difficult for sellers who are early in their business growth—they rarely have the cash reserves or the diversity of revenue streams to reinvest in the business. It can also be difficult during busy seasons, where sellers front load on inventory, sell it quickly, and need to replenish before they realize all of that revenue.
Some Amazon sellers fall into the early trap of spending too much of their available cash on their first orders. This creates a cycle of waiting for sales, and then waiting an additional 14 days for the next payout before buying new inventory. Ask any successful Amazon business—this will lead to stock outs and crush your momentum. As a general practice, you should be able to fund three cycles of inventory before you collect the revenue from your first sale.
The best way to manage cash flow issues resulting from Amazon payouts is by planning ahead and budgeting accordingly. You can find a few ecommerce cash flow hacks here.
Keep in mind the two week payment schedule, allocate some of your sales profits into savings, and use a free app like Viably to track your cash flow.
Use funding to fill the gaps in the Amazon seller payout schedule
With the right planning, you can sustain healthy cash flow to build a profitable business. Growth is a different story. To truly hit your goals, you’ll need to scale your inventory orders, your marketing campaigns, and your daily operations. Waiting 2-3 weeks for every sale makes it difficult.
The solution is ecommerce funding. As you develop your skills as an Amazon seller, you will grow your sales to a point where you qualify for capital. Now, you can access the money up front for large orders or product launches, then pay it back over time as your sales are disbursed.
Check out the calculator below to see how much cash you could get from Viably.