Amazon daily payments and payouts are a critical aspect of managing your cash flow as an Amazon seller. Understanding how they work, what to look for, and how to streamline your cash flow sustainably with Amazon daily payouts 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.
Standard Amazon Payment Terms
According to Amazon’s Payment Terms, professional sellers should be paid every 2 weeks for orders delivered within 7 days of the estimated delivery date. Amazon requires another week after the delivery window to help ensure that customers won’t be returning items or requiring a refund.
Orders that are delivered within 7 days of your next scheduled payout date also may be delayed ever further due to processing times. And, since Amazon uses ACH transfers for payment, sometimes funds may take up to 3-5 days before they’re visible in your bank account. This means that between the time a customer makes a purchase and the time you get paid there’s a 14+ day delay.
In addition to that, newer sellers are often subjected to a minimum “account level reserve” where Amazon withholds all or part of your payment for more than 14 days in case of issues with customers. As you become a more established Amazon seller, your required Amazon level reserve will decrease, and sometimes go away entirely.
All of these delays can create serious cash flow hiccups and place immense financial pressure on your Amazon business. That’s why it’s crucial for you to understand your Amazon payment schedule and optimize your standard payout procedure to ensure that you’re maximizing growth.
How Amazon Payouts Work
Amazon payouts are the payments sent by Amazon to its sellers for products sold on its platform. Once the buyer’s payment method 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 Amazon Seller Central, the seller can choose how to withdraw the funds to their bank account. Here’s how the process works in more detail:
- A customer places an order for a product on Amazon.
- The payment is processed and Amazon holds the funds “in escrow” for 2+ weeks.
- The Amazon seller ships the product to the customer.
- Once the product is shipped, Amazon releases the funds to the seller’s account after a certain period of time.
- The seller can then choose how to withdraw the funds from their Amazon account to their bank account via ACH transfer or other deposit method.
When do Amazon Sellers get paid?
The timing of Amazon payouts depends on the payment schedule chosen by the seller. By default, Amazon sends payments every two weeks. However, Amazon sellers can also choose to receive payouts on a daily or weekly basis. The more established you are as a seller, the more options for expedited Amazon payouts you will have available to you.
Bi-Weekly Payouts: With bi-weekly payouts, the seller receives funds every two weeks. This is the standard payout schedule offered by Amazon and provides a reasonable balance between convenience and stability. However, it can create financial pressure for Amazon sellers who require a more streamlined cash flow.
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 still result in a delay of up to seven days.
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!
Amazon Daily and Next Day Payments
While Amazon won’t transfer money to your bank account before the 14 day holding period is over, there are still ways to get paid with Daily Payouts or Next-Day Payouts.
Daily Payouts
While Amazon’s standard payout procedure won’t automatically send daily payouts to sellers, you can still use the “Request Transfer” button on your Amazon Seller Central payment dashboard to request payouts early.
Keep in mind, this is still not a real-time payout. By requesting a transfer you’re initialing a transfer of the currently available funds. Basically you’re requesting the money from orders sold 14 days ago that are now available.
Next-Day Payouts
To be eligible to next-day payouts from Amazon you must be a veteran seller, having a healthy account for over a decade on Amazon. Even then, Amazon payment terms are fickle and you still might not qualify.
In order to receive next-day Amazon payments outside of the standard payout terms, you’ll need a 3rd Party Instant Access Solution, like Viably Cash Advance. These solutions purchase receivables owed to you by Amazon and can make up to 80% of that capital available to you the following day. That 20% retained is intended to cover returns, replacements, or other charges– just like in you Amazon account reserve. You’ll be paid this remaining 20% according to your normal Amazon payout schedule.
Next day Amazon payout services can help you improve your cash flow, expedite your cash conversion cycle, and drive sales growth month over month.
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.
Where to Find Your Amazon Payment Schedule
You can view exactly how much you’ll be paid and when it’s scheduled to be transferred to your bank account from the Payment Dashboard in your Amazon Seller Central Account. This is also where you can update any payment information for your Amazon business.
In your Payment Report you can also view your Amazon account level reserve to see exactly how much of your revenue is being withheld.
Streamline Scheduling for Success
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. Expedite your payouts, boost your growth, and ensure optimal cash flow with funding from Viably, along with expert guidance on how to manage your finances and stay on top of your cash flow. Stop having to rely on Amazon daily payments and other eCommerce payout products and streamline your finances in one seamless tool.
