Amazon - Change to the deadline for payouts of sales proceeds

New Payout Deadline Now Set to "International" Standard by Amazon

Sellers on Amazon frequently have to adapt to various changes. The latest measure by the company has caused some dissatisfaction among German sellers. Recently, Amazon informed its German sellers about a new baseline policy for reserves. According to this policy, payouts will now be made seven days after the delivery date instead of the shipping date. These withheld amounts are intended to ensure that sellers can meet their financial obligations, such as refunds, promptly.

The "reserves based on delivery date" policy has been an international standard since 2016, according to a company statement. Accounts that either had no reserves or whose reserves were calculated based on shipping confirmations are now being adjusted to this new regulation. However, it is still unclear when exactly these accounts will be transitioned. Some sellers have received emails mentioning early August as the transition date, while others have been informed of a switch at the beginning of September.

The payout amounts will now be available seven days after the delivery date. If sellers use Amazon's integrated shipping services, the delivery date reported by the shipping provider will be used as the basis. If shipping is handled by another company and no tracking is available, the latest estimated delivery date will be used. In some cases, this could mean that payouts are not made until nearly two weeks after the sale. For example, as Amazon itself illustrates: "If you ship an item on February 1st and the delivery date is February 4th, the funds will be available for payout starting February 12th."

This change does not affect all companies operating on the marketplace. However, for those who previously did not need to maintain reserves and could have their earnings paid out directly, this adjustment has caused some frustration. The reasoning for the change, namely to ensure the quick processing of potential claims, makes sellers with few or no returns feel disadvantaged.

Additionally, payouts based on the delivery date could mean that factors like delayed deliveries or flexible pick-ups at parcel stations might significantly impact cash flow in the future.

In this evolving landscape of e-commerce, repricing strategies become crucial for sellers to maintain their competitiveness and profitability. Adapting to changes in payout schedules and reserve policies can be challenging, but implementing effective repricing techniques can help sellers stay ahead. Repricing tools enable sellers to adjust their prices dynamically, ensuring they remain competitive while also managing their cash flow efficiently. By utilizing repricing strategies, sellers can better navigate the uncertainties of payout timelines and maintain a steady financial footing.

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