If you’re an Amazon seller, you’ve probably noticed some strange discrepancies between your Business Reports and Payments Reports lately. Don’t worry, you’re not alone! These issues are likely due to Amazon’s new Delivery Date Policy and Deferred Transactions Policy, which started on November 1st.
To put it simply, this policy change means Amazon is now holding onto your money for 7 extra days after your items are delivered. This might sound harmless, but it’s creating a lot of confusion for sellers trying to track their earnings and manage cash flow.
What is the Delivery Date + 7 Policy?
Amazon’s new rule is called the Delivery Date + 7 Reserve Policy. Here’s how it works:
- Step 1: You make a sale on January 1st.
- Step 2: You ship the item, and it’s delivered to the customer on January 6th.
- Step 3: Instead of getting paid on January 6th, Amazon holds your funds until January 14th—which is 7 days after the delivery date.
Why does Amazon do this? They say it’s to protect themselves and customers in case there are returns, chargebacks, or claims (for example, if a customer says their item didn’t arrive or if they want to return it). By holding the money for an extra 7 days, Amazon ensures there’s enough money in case of issues.
The Problem: Confusing Reports
While the Delivery Date + 7 policy may make sense for Amazon’s protection, it’s causing big headaches for sellers.
Here’s the issue: The way Amazon reports your sales and payments is now all over the place. Instead of seeing a clear picture of how much you’ve earned and when you’ll get paid, you have to hunt through different reports to figure out what’s going on. This is especially frustrating when your Profit and Loss (P&L) doesn’t match up with your actual payments, leaving you with more questions than answers.
One of the reports you need to check is called the “Deferred Transactions” section in your Payment Reports. This is where Amazon shows what funds are being held back. But, spoiler alert: the numbers often don’t line up with your expectations. And trying to make sense of these discrepancies feels like solving a puzzle—without all the pieces.
Why Did Amazon Change the Policy?
The main reason Amazon made this change is to protect itself from chargebacks (when a customer asks their bank to reverse a payment) or returns. They want to make sure there’s enough money in the bank to cover these situations.
For example, if a customer returns an item or files a claim, Amazon wants to have that money ready, rather than coming up short. While this is good for Amazon, it’s a big inconvenience for sellers who need to know when they’ll actually get paid.
Why Is This a Problem for Sellers?
For sellers, this new policy is frustrating for several reasons:
- It makes reporting unclear: Because Amazon holds back payments for an extra week, it’s harder to track how much you’re actually earning at any given time.
- It messes with your cash flow: As a seller, you rely on getting paid quickly to keep your business running. Delayed payments can make it hard to pay suppliers, employees, or other business expenses.
- It’s hard to plan: Without clear data, it’s difficult to predict when you’ll get paid or how much you’ve earned in a given period. This can make budgeting and business planning a real challenge.
What Can You Do About It?
If you’re trying to navigate these changes, here are some tips to help you:
- Check the Deferred Transactions Report: Make sure you’re looking at the Deferred Transactions section of your Payments Report to see what’s being held. However, don’t be surprised if the numbers don’t always match your expectations.
- Track Delivery Dates: Since Amazon is holding funds based on the delivery date, make sure all your delivery dates are accurate in Amazon’s system. If the dates are off, it could delay your payment even further.
- Prepare for Payment Delays: Since payouts are now delayed by a week, plan your cash flow accordingly. You may need to adjust your budgeting to account for the extra delay in funds.
- Contact Amazon Support: If things aren’t adding up or if you have concerns about discrepancies, reach out to Amazon Seller Support. While they may not always have immediate answers, they can provide guidance on how to resolve issues.
- Stay Updated: Amazon frequently updates its policies, so be sure to keep an eye on any new changes that may affect your business.
The Bottom Line: More Transparency, Please!
While Amazon’s new Delivery Date + 7 Reserve Policy might make sense for their own protection, it’s leaving sellers in a tough spot. Without clear and accurate reporting, it’s much harder for sellers to manage their cash flow and plan for future growth.
We all want to make sure customers are protected, but Amazon needs to be more transparent and clear with their reporting to help sellers stay on top of their business. If Amazon can improve transparency and make these reports easier to understand, it will help everyone—from sellers to customers—work better together.
Until then, sellers will just have to keep playing the guessing game with Amazon’s delayed payouts. If you’re dealing with the same issues, share your thoughts in the comments or reach out on social media. Let’s work together to make this process a little less confusing!
