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How Do Amazon Payouts Work? Your Guide To Getting Paid Faster

Amazon payouts are an important aspect of being an Amazon seller. Understanding how they work and what to look for is crucial to managing a successful eCommerce business. In this article, we’ll take a closer look at how Amazon payouts work and what to consider when taking advantage of these payment options.

How Amazon Payouts Work for Amazon Seller

Amazon payouts are the payments sent by Amazon to its sellers for products sold on its platform. Once the buyer’s payment has been processed, Amazon holds the funds in escrow until the order is shipped, at which point the funds are released to the seller’s Amazon account. From there, the seller can choose how to withdraw the funds to their bank account. Here’s how the process works in more detail:

  1. The buyer places an order for a product on Amazon.
  2. The payment is processed and Amazon holds the funds “in escrow”.
  3. The seller ships the product to the buyer.
  4. Once the product is shipped, Amazon releases the funds to the seller’s account after a certain period of time.
  5. The seller can then choose how to withdraw the funds from their Amazon account to their bank account.

When Do Amazon Sellers Get Paid?

The timing of Amazon payouts depends on the payment schedule chosen by the seller. By default, Amazon sends payouts every two weeks. However, sellers can also choose to receive payouts on a daily or weekly basis.

Daily Payouts: With daily payouts, the seller receives the funds from their sales on the same day they are collected by Amazon. This allows the seller to access their funds as quickly as possible but can also be a bit more complex to manage. Many Amazon sellers opt for a funding tool to help support daily cash advances, more on that below! 

Weekly Payouts: Weekly payouts allow sellers to receive their funds on a specific day of the week. This option provides a bit more stability in terms of budgeting and cash flow, but can result in a delay of up to seven days.

Bi-Weekly Payouts: With bi-weekly payouts, the seller receives funds every two weeks. This is the default payment schedule offered by Amazon and provides a reasonable balance between convenience and stability.

Cash Advance For Amazon Sellers

Most Amazon sellers use Cash Advance products like Viably to receive faster payment on their sales the next day. With cash advance products, Amazon sellers may take out an advance with a defined fee and interest. While cash advance products may appear to be the best option for cash-strapped Amazon sellers, understanding the fees associated with this option is important to ensuring positive cash flow for the business. 

What to Look for in Amazon Payout Fees

When it comes to fees that come from Amazon payouts, there are a few factors to keep in mind. First, there are transaction fees. These fees are charged by Amazon for each sale made on their platform. They typically have a large range and depend on the product category and the type of seller account.

In addition to transaction fees, there are also Amazon payout fees. These fees are charged by Amazon for the process of transferring funds from the seller’s account to their bank account. They typically range from $0.25 to $1.50 per transfer, depending on the payment schedule chosen by the seller.

While there are pros and cons to each Amazon payout schedule, choosing the one that works best for your business needs is essential to managing a successful eCommerce business. With Viably’s digital banking solutions for eCommerce sellers, however, you can access funding solutions that are tailored to your needs and better manage your cash flow. With Viably, you can get the funding you need to grow your business, along with expert guidance on how to manage your finances and stay on top of your cash flow.