How the estimated delivery date reserve funds policy is destroying my business
I have a good business on Amazon where I make a good amount of orders however I literally cannot fulfil the orders because of this EDD reserve funds policy, at present I have over £7000 in reserve whilst Amazon release £100-£200 at a time. This is causing a cash flow issue and backlog of orders that are waiting to be posted, this obviously leads to late delivery causing bad feedback and claims which would not happen if the funds were released. Business runs on cash flow and this policy is stifling the cash flow. Every claim and feedback I have received is related to late delivery or goods not received. I want to send my orders immediately however I have to extend my handling time so I can collect enough funds to send orders. It’s like torture every morning when I check Amazon pages to see money in reserve which could be used to send orders to customers which would improve my ratings and sales. I feel this policy is counterproductive and unfair, I would have no customer complaints if this policy did not exist. Amazon keeps asking in their user polls if Amazon is good for business but I have to answer no because this policy is killing my business. I started out selling on eBay and then opened an Amazon account, I was so busy that I had to close my eBay account so I could concentrate on fulfilling my orders on Amazon, I now regret doing this as this policy has not only effected my business but my personal life as well, I can’t pay myself because the money released by Amazon doesn’t even cover my postage costs, I now have to choose between sending products to customers and paying bills, if I’m honest I wish I never started selling on Amazon because this policy has made my life a living hell. I’ve contacted Seller Support but of course they’re no help at all and keep transferring my case to a department who I can’t actually speak to and who just send automated messages telling me about the policy, this doesn’t address the issue. I would even take an Amazon Lending loan but it’s never offered to me because I constantly have customer complaints because of this rubbish policy. I now understand what a Catch 22 situation really is. According to Amazon they are here to help but I don’t see any help just hinderance, they’re here to help but they’re creating the problem!
@Julia_Amzn
@Seller_wQ3htKyU885lu
@Ezra_Amazon
@Winston_Amazon
How the estimated delivery date reserve funds policy is destroying my business
I have a good business on Amazon where I make a good amount of orders however I literally cannot fulfil the orders because of this EDD reserve funds policy, at present I have over £7000 in reserve whilst Amazon release £100-£200 at a time. This is causing a cash flow issue and backlog of orders that are waiting to be posted, this obviously leads to late delivery causing bad feedback and claims which would not happen if the funds were released. Business runs on cash flow and this policy is stifling the cash flow. Every claim and feedback I have received is related to late delivery or goods not received. I want to send my orders immediately however I have to extend my handling time so I can collect enough funds to send orders. It’s like torture every morning when I check Amazon pages to see money in reserve which could be used to send orders to customers which would improve my ratings and sales. I feel this policy is counterproductive and unfair, I would have no customer complaints if this policy did not exist. Amazon keeps asking in their user polls if Amazon is good for business but I have to answer no because this policy is killing my business. I started out selling on eBay and then opened an Amazon account, I was so busy that I had to close my eBay account so I could concentrate on fulfilling my orders on Amazon, I now regret doing this as this policy has not only effected my business but my personal life as well, I can’t pay myself because the money released by Amazon doesn’t even cover my postage costs, I now have to choose between sending products to customers and paying bills, if I’m honest I wish I never started selling on Amazon because this policy has made my life a living hell. I’ve contacted Seller Support but of course they’re no help at all and keep transferring my case to a department who I can’t actually speak to and who just send automated messages telling me about the policy, this doesn’t address the issue. I would even take an Amazon Lending loan but it’s never offered to me because I constantly have customer complaints because of this rubbish policy. I now understand what a Catch 22 situation really is. According to Amazon they are here to help but I don’t see any help just hinderance, they’re here to help but they’re creating the problem!
@Julia_Amzn
@Seller_wQ3htKyU885lu
@Ezra_Amazon
@Winston_Amazon
26 replies
Seller_KlbXZHzQGSDZv
You might want to consider how you send all these items. Is it a lot of small value items or medium value. You might want to look at changing to a tracked postage rate so Amazon no longer rely on estimasted delivery dates and release payments as soon as the item arrives at the destination.
If your needing to rely on Amazon paying you inorder to be able to afford the postage going out you might want to check your profit/loss on each item
Seller_HU09FGdJ07Hys
There are other ways to solve your cashflow issue.
1) Pay your suppliers/couriers with a credit card, or agree payment after 30 days.
2) Talk to your banker.
Seller_mBzMy5fGvPFrw
exactly why this policy is completely wrong and need to be abandoned by Amazon. My business also relies on the cash flow from the daily disbursements and I am very concerned about this policy being introduced for us in September.
I am very sorry that this is causing you so much stress, i hope that you manage to find a way to keep going
Seller_EkGoiphKgUnUI
There are only two solutions available to you at current - either you gain access to credit for your business, or even you personally, if you are the Director of an Ltd and your accountant is happy to use a personal credit card for business use (adding to Directors Loan Account when used), or cease selling products when you do not have the finances to afford the shipping.
We all have to balance our finances according to Amazon's slow pay-out policy, and making sure that there is always at least some funds in your business banking account, is a crucial part of managing business fincances.
I'd strongly advise against an Amazon business loan, as most credit options give you a time period in which there can be no interest incurred. Whatever you do though, you need to get a good hand on it, as each negative feedback will impact your account.
On a plus note though, getting so many sales that you are stretching everything you have, should be a positive - I'd be checking your profit margins, as such success should lead to having more money than needed at times.
Seller_l9DWGFvAaJQ2I
Not having enough funds to post stuff rings alarm bells. Especially if you have a a 30 day account with Royal Mail or similar.
Surely you can jiggle things to buy postage?
If you cant buy the stamps then restocking will be fun.
Seller_1knJZZbkAQ6qS
I simply believe Amazon is doing this to raise yet more revenue to fund their expansion free of charge. We have been selling for years and have been able to disburse daily for ever, why it takes 4 days to hit our account though is another matter. They are moving us onto the new system which will basically mean they keep 2 weeks worth of our money, forever. We have never been in a position to not fund a return or chargeback so the justification for this is zero. Fair enough if we were a dodgy new seller selling huge volumes of questionable quality items for next to nothing but we have been selling quality niche market goods for years with a 99% positive lifetime feedback rate. Not sure who I trust less, the Inland Revenue or Amazon, tough choice!
Seller_nMvvMNiZTUmR1
i would take a FIRE BREAK.......stop orders for 5 days to get back on track with cash flow....
Seller_9lelPKldw1awP
In the hope that someone at Amazon actually reads these posts I would like to chime in to give our experience of the DD+7 Days Reserve Policy.
Our company makes innovative products and almost everything we have launched on Amazon sells well.
Last Christmas was the best we had ever had in terms of sales thanks to the success of our products on Amazon.
Winning in business is one of the best feelings there is, but Amazon stole all of the joy away from the best sales period in our companies history, because every day felt like we were going under.
Amazon owed us £10,000’s but we were completely broke, after our business overdraft was extended and exhausted, personal credit cards maxed out, we resorted to working capital at 150%+ APR (they don’t tell you that). Ultimately the cost to us in interest and fees was extortionate, meanwhile on paper we shouldn’t have needed to borrow a penny.
The stress each day just trying to figure out how we were going pay for stock to make the products was off the scale.
But this isn’t Amazon’s problem. I can tell what is and why whatever blinkered fools came up with this short sighted DD+7 policy.
The DD+7 Day Disbursement Policy if nothing else is a almighty barrier to growth.
We had several other products lined up to launch last Christmas that would have easily have made us and Amazon £1000’s in additional profits, but we couldn’t afford to buy the stock, because Amazon had all our money.
If you multiply that by the 1000’s of sellers that are affected in the same way and it’s clear to see that Amazon are actually stifling their own biggest source of revenue, Selling Partner Sales.
The defect rate based reserve policy is the only logical way assess a sellers risk and reserve requirement. This should be coupled with Next Day disbursements by the Faster Payments System. Or better still PayPal’s style instant access, instant transfers.
It doesn’t take a genius to work out that if you remove the barriers to growth for your selling partners, they will grow quicker!
I can’t help but think this policy which clearly has nothing to do with actual seller risk has been introduced to either:
1. Funnel desperate sellers towards Amazon Lending “we can’t trust you with your own money but we’ll lend it to you next day no problem! - for an extortionate fee” (Whether deliberate or not THIS IS HAPPENING!)
Or
2. To give their own products on the marketplace an unfair advantage by holding sellers heads underwater. (Whether deliberate or not THIS IS HAPPENING!)
Or
3. Because the Amazon employees responsible for this policy know nothing about SME’s and are utterly incompetent.
Whatever the reason(s) the DD+7 policy and the archaic bank transfer that are employed are not fit for purpose.
On a Platform whose customers demand Next Day or even Same Day Delivery, how can you justify withholding sellers funds for 2 weeks or more?
A business should be able to be started with a minimal outlay and naturally grow. On Amazon you have to already have the money to grow.
This ridiculous and harmful policy is counterintuitive, counterproductive, leads to businesses being forced to make all manner of inefficient and costly decisions to fulfil orders and ultimately Amazon IT’S NOT YOUR MONEY!
Please, please please scrap this Erroneous policy and allow your selling parters to thrive unimpeded and do what we do best.
Seller_9lelPKldw1awP
To respond to the original post.
In the short term, using credit card to pay for everything and repaying the balance with your disbursements is an interest free way to borrow the money needed and get your orders out on time and bridge the funding gap.
An overdraft would be my second choice, although this will incur fees.
If you are sending out over 1500 parcels per year, you can apply for Royal Mail Tracked account, with collections from your home and 30 days credit terms.
I would avoid working capital because the hidden APR’s are extortionate.
Borrowing can only take you so far and ultimately if your sales begin to exceed your available credit you will have issues. But hopefully for starters the above and others suggestions will help you get your Amazon health rating and customer satisfaction up.
You are certainly not alone in your struggles.
How the estimated delivery date reserve funds policy is destroying my business
I have a good business on Amazon where I make a good amount of orders however I literally cannot fulfil the orders because of this EDD reserve funds policy, at present I have over £7000 in reserve whilst Amazon release £100-£200 at a time. This is causing a cash flow issue and backlog of orders that are waiting to be posted, this obviously leads to late delivery causing bad feedback and claims which would not happen if the funds were released. Business runs on cash flow and this policy is stifling the cash flow. Every claim and feedback I have received is related to late delivery or goods not received. I want to send my orders immediately however I have to extend my handling time so I can collect enough funds to send orders. It’s like torture every morning when I check Amazon pages to see money in reserve which could be used to send orders to customers which would improve my ratings and sales. I feel this policy is counterproductive and unfair, I would have no customer complaints if this policy did not exist. Amazon keeps asking in their user polls if Amazon is good for business but I have to answer no because this policy is killing my business. I started out selling on eBay and then opened an Amazon account, I was so busy that I had to close my eBay account so I could concentrate on fulfilling my orders on Amazon, I now regret doing this as this policy has not only effected my business but my personal life as well, I can’t pay myself because the money released by Amazon doesn’t even cover my postage costs, I now have to choose between sending products to customers and paying bills, if I’m honest I wish I never started selling on Amazon because this policy has made my life a living hell. I’ve contacted Seller Support but of course they’re no help at all and keep transferring my case to a department who I can’t actually speak to and who just send automated messages telling me about the policy, this doesn’t address the issue. I would even take an Amazon Lending loan but it’s never offered to me because I constantly have customer complaints because of this rubbish policy. I now understand what a Catch 22 situation really is. According to Amazon they are here to help but I don’t see any help just hinderance, they’re here to help but they’re creating the problem!
@Julia_Amzn
@Seller_wQ3htKyU885lu
@Ezra_Amazon
@Winston_Amazon
How the estimated delivery date reserve funds policy is destroying my business
I have a good business on Amazon where I make a good amount of orders however I literally cannot fulfil the orders because of this EDD reserve funds policy, at present I have over £7000 in reserve whilst Amazon release £100-£200 at a time. This is causing a cash flow issue and backlog of orders that are waiting to be posted, this obviously leads to late delivery causing bad feedback and claims which would not happen if the funds were released. Business runs on cash flow and this policy is stifling the cash flow. Every claim and feedback I have received is related to late delivery or goods not received. I want to send my orders immediately however I have to extend my handling time so I can collect enough funds to send orders. It’s like torture every morning when I check Amazon pages to see money in reserve which could be used to send orders to customers which would improve my ratings and sales. I feel this policy is counterproductive and unfair, I would have no customer complaints if this policy did not exist. Amazon keeps asking in their user polls if Amazon is good for business but I have to answer no because this policy is killing my business. I started out selling on eBay and then opened an Amazon account, I was so busy that I had to close my eBay account so I could concentrate on fulfilling my orders on Amazon, I now regret doing this as this policy has not only effected my business but my personal life as well, I can’t pay myself because the money released by Amazon doesn’t even cover my postage costs, I now have to choose between sending products to customers and paying bills, if I’m honest I wish I never started selling on Amazon because this policy has made my life a living hell. I’ve contacted Seller Support but of course they’re no help at all and keep transferring my case to a department who I can’t actually speak to and who just send automated messages telling me about the policy, this doesn’t address the issue. I would even take an Amazon Lending loan but it’s never offered to me because I constantly have customer complaints because of this rubbish policy. I now understand what a Catch 22 situation really is. According to Amazon they are here to help but I don’t see any help just hinderance, they’re here to help but they’re creating the problem!
@Julia_Amzn
@Seller_wQ3htKyU885lu
@Ezra_Amazon
@Winston_Amazon
How the estimated delivery date reserve funds policy is destroying my business
I have a good business on Amazon where I make a good amount of orders however I literally cannot fulfil the orders because of this EDD reserve funds policy, at present I have over £7000 in reserve whilst Amazon release £100-£200 at a time. This is causing a cash flow issue and backlog of orders that are waiting to be posted, this obviously leads to late delivery causing bad feedback and claims which would not happen if the funds were released. Business runs on cash flow and this policy is stifling the cash flow. Every claim and feedback I have received is related to late delivery or goods not received. I want to send my orders immediately however I have to extend my handling time so I can collect enough funds to send orders. It’s like torture every morning when I check Amazon pages to see money in reserve which could be used to send orders to customers which would improve my ratings and sales. I feel this policy is counterproductive and unfair, I would have no customer complaints if this policy did not exist. Amazon keeps asking in their user polls if Amazon is good for business but I have to answer no because this policy is killing my business. I started out selling on eBay and then opened an Amazon account, I was so busy that I had to close my eBay account so I could concentrate on fulfilling my orders on Amazon, I now regret doing this as this policy has not only effected my business but my personal life as well, I can’t pay myself because the money released by Amazon doesn’t even cover my postage costs, I now have to choose between sending products to customers and paying bills, if I’m honest I wish I never started selling on Amazon because this policy has made my life a living hell. I’ve contacted Seller Support but of course they’re no help at all and keep transferring my case to a department who I can’t actually speak to and who just send automated messages telling me about the policy, this doesn’t address the issue. I would even take an Amazon Lending loan but it’s never offered to me because I constantly have customer complaints because of this rubbish policy. I now understand what a Catch 22 situation really is. According to Amazon they are here to help but I don’t see any help just hinderance, they’re here to help but they’re creating the problem!
@Julia_Amzn
@Seller_wQ3htKyU885lu
@Ezra_Amazon
@Winston_Amazon
26 replies
26 replies
Seller_KlbXZHzQGSDZv
You might want to consider how you send all these items. Is it a lot of small value items or medium value. You might want to look at changing to a tracked postage rate so Amazon no longer rely on estimasted delivery dates and release payments as soon as the item arrives at the destination.
If your needing to rely on Amazon paying you inorder to be able to afford the postage going out you might want to check your profit/loss on each item
Seller_HU09FGdJ07Hys
There are other ways to solve your cashflow issue.
1) Pay your suppliers/couriers with a credit card, or agree payment after 30 days.
2) Talk to your banker.
Seller_mBzMy5fGvPFrw
exactly why this policy is completely wrong and need to be abandoned by Amazon. My business also relies on the cash flow from the daily disbursements and I am very concerned about this policy being introduced for us in September.
I am very sorry that this is causing you so much stress, i hope that you manage to find a way to keep going
Seller_EkGoiphKgUnUI
There are only two solutions available to you at current - either you gain access to credit for your business, or even you personally, if you are the Director of an Ltd and your accountant is happy to use a personal credit card for business use (adding to Directors Loan Account when used), or cease selling products when you do not have the finances to afford the shipping.
We all have to balance our finances according to Amazon's slow pay-out policy, and making sure that there is always at least some funds in your business banking account, is a crucial part of managing business fincances.
I'd strongly advise against an Amazon business loan, as most credit options give you a time period in which there can be no interest incurred. Whatever you do though, you need to get a good hand on it, as each negative feedback will impact your account.
On a plus note though, getting so many sales that you are stretching everything you have, should be a positive - I'd be checking your profit margins, as such success should lead to having more money than needed at times.
Seller_l9DWGFvAaJQ2I
Not having enough funds to post stuff rings alarm bells. Especially if you have a a 30 day account with Royal Mail or similar.
Surely you can jiggle things to buy postage?
If you cant buy the stamps then restocking will be fun.
Seller_1knJZZbkAQ6qS
I simply believe Amazon is doing this to raise yet more revenue to fund their expansion free of charge. We have been selling for years and have been able to disburse daily for ever, why it takes 4 days to hit our account though is another matter. They are moving us onto the new system which will basically mean they keep 2 weeks worth of our money, forever. We have never been in a position to not fund a return or chargeback so the justification for this is zero. Fair enough if we were a dodgy new seller selling huge volumes of questionable quality items for next to nothing but we have been selling quality niche market goods for years with a 99% positive lifetime feedback rate. Not sure who I trust less, the Inland Revenue or Amazon, tough choice!
Seller_nMvvMNiZTUmR1
i would take a FIRE BREAK.......stop orders for 5 days to get back on track with cash flow....
Seller_9lelPKldw1awP
In the hope that someone at Amazon actually reads these posts I would like to chime in to give our experience of the DD+7 Days Reserve Policy.
Our company makes innovative products and almost everything we have launched on Amazon sells well.
Last Christmas was the best we had ever had in terms of sales thanks to the success of our products on Amazon.
Winning in business is one of the best feelings there is, but Amazon stole all of the joy away from the best sales period in our companies history, because every day felt like we were going under.
Amazon owed us £10,000’s but we were completely broke, after our business overdraft was extended and exhausted, personal credit cards maxed out, we resorted to working capital at 150%+ APR (they don’t tell you that). Ultimately the cost to us in interest and fees was extortionate, meanwhile on paper we shouldn’t have needed to borrow a penny.
The stress each day just trying to figure out how we were going pay for stock to make the products was off the scale.
But this isn’t Amazon’s problem. I can tell what is and why whatever blinkered fools came up with this short sighted DD+7 policy.
The DD+7 Day Disbursement Policy if nothing else is a almighty barrier to growth.
We had several other products lined up to launch last Christmas that would have easily have made us and Amazon £1000’s in additional profits, but we couldn’t afford to buy the stock, because Amazon had all our money.
If you multiply that by the 1000’s of sellers that are affected in the same way and it’s clear to see that Amazon are actually stifling their own biggest source of revenue, Selling Partner Sales.
The defect rate based reserve policy is the only logical way assess a sellers risk and reserve requirement. This should be coupled with Next Day disbursements by the Faster Payments System. Or better still PayPal’s style instant access, instant transfers.
It doesn’t take a genius to work out that if you remove the barriers to growth for your selling partners, they will grow quicker!
I can’t help but think this policy which clearly has nothing to do with actual seller risk has been introduced to either:
1. Funnel desperate sellers towards Amazon Lending “we can’t trust you with your own money but we’ll lend it to you next day no problem! - for an extortionate fee” (Whether deliberate or not THIS IS HAPPENING!)
Or
2. To give their own products on the marketplace an unfair advantage by holding sellers heads underwater. (Whether deliberate or not THIS IS HAPPENING!)
Or
3. Because the Amazon employees responsible for this policy know nothing about SME’s and are utterly incompetent.
Whatever the reason(s) the DD+7 policy and the archaic bank transfer that are employed are not fit for purpose.
On a Platform whose customers demand Next Day or even Same Day Delivery, how can you justify withholding sellers funds for 2 weeks or more?
A business should be able to be started with a minimal outlay and naturally grow. On Amazon you have to already have the money to grow.
This ridiculous and harmful policy is counterintuitive, counterproductive, leads to businesses being forced to make all manner of inefficient and costly decisions to fulfil orders and ultimately Amazon IT’S NOT YOUR MONEY!
Please, please please scrap this Erroneous policy and allow your selling parters to thrive unimpeded and do what we do best.
Seller_9lelPKldw1awP
To respond to the original post.
In the short term, using credit card to pay for everything and repaying the balance with your disbursements is an interest free way to borrow the money needed and get your orders out on time and bridge the funding gap.
An overdraft would be my second choice, although this will incur fees.
If you are sending out over 1500 parcels per year, you can apply for Royal Mail Tracked account, with collections from your home and 30 days credit terms.
I would avoid working capital because the hidden APR’s are extortionate.
Borrowing can only take you so far and ultimately if your sales begin to exceed your available credit you will have issues. But hopefully for starters the above and others suggestions will help you get your Amazon health rating and customer satisfaction up.
You are certainly not alone in your struggles.
Seller_KlbXZHzQGSDZv
You might want to consider how you send all these items. Is it a lot of small value items or medium value. You might want to look at changing to a tracked postage rate so Amazon no longer rely on estimasted delivery dates and release payments as soon as the item arrives at the destination.
If your needing to rely on Amazon paying you inorder to be able to afford the postage going out you might want to check your profit/loss on each item
Seller_KlbXZHzQGSDZv
You might want to consider how you send all these items. Is it a lot of small value items or medium value. You might want to look at changing to a tracked postage rate so Amazon no longer rely on estimasted delivery dates and release payments as soon as the item arrives at the destination.
If your needing to rely on Amazon paying you inorder to be able to afford the postage going out you might want to check your profit/loss on each item
Seller_HU09FGdJ07Hys
There are other ways to solve your cashflow issue.
1) Pay your suppliers/couriers with a credit card, or agree payment after 30 days.
2) Talk to your banker.
Seller_HU09FGdJ07Hys
There are other ways to solve your cashflow issue.
1) Pay your suppliers/couriers with a credit card, or agree payment after 30 days.
2) Talk to your banker.
Seller_mBzMy5fGvPFrw
exactly why this policy is completely wrong and need to be abandoned by Amazon. My business also relies on the cash flow from the daily disbursements and I am very concerned about this policy being introduced for us in September.
I am very sorry that this is causing you so much stress, i hope that you manage to find a way to keep going
Seller_mBzMy5fGvPFrw
exactly why this policy is completely wrong and need to be abandoned by Amazon. My business also relies on the cash flow from the daily disbursements and I am very concerned about this policy being introduced for us in September.
I am very sorry that this is causing you so much stress, i hope that you manage to find a way to keep going
Seller_EkGoiphKgUnUI
There are only two solutions available to you at current - either you gain access to credit for your business, or even you personally, if you are the Director of an Ltd and your accountant is happy to use a personal credit card for business use (adding to Directors Loan Account when used), or cease selling products when you do not have the finances to afford the shipping.
We all have to balance our finances according to Amazon's slow pay-out policy, and making sure that there is always at least some funds in your business banking account, is a crucial part of managing business fincances.
I'd strongly advise against an Amazon business loan, as most credit options give you a time period in which there can be no interest incurred. Whatever you do though, you need to get a good hand on it, as each negative feedback will impact your account.
On a plus note though, getting so many sales that you are stretching everything you have, should be a positive - I'd be checking your profit margins, as such success should lead to having more money than needed at times.
Seller_EkGoiphKgUnUI
There are only two solutions available to you at current - either you gain access to credit for your business, or even you personally, if you are the Director of an Ltd and your accountant is happy to use a personal credit card for business use (adding to Directors Loan Account when used), or cease selling products when you do not have the finances to afford the shipping.
We all have to balance our finances according to Amazon's slow pay-out policy, and making sure that there is always at least some funds in your business banking account, is a crucial part of managing business fincances.
I'd strongly advise against an Amazon business loan, as most credit options give you a time period in which there can be no interest incurred. Whatever you do though, you need to get a good hand on it, as each negative feedback will impact your account.
On a plus note though, getting so many sales that you are stretching everything you have, should be a positive - I'd be checking your profit margins, as such success should lead to having more money than needed at times.
Seller_l9DWGFvAaJQ2I
Not having enough funds to post stuff rings alarm bells. Especially if you have a a 30 day account with Royal Mail or similar.
Surely you can jiggle things to buy postage?
If you cant buy the stamps then restocking will be fun.
Seller_l9DWGFvAaJQ2I
Not having enough funds to post stuff rings alarm bells. Especially if you have a a 30 day account with Royal Mail or similar.
Surely you can jiggle things to buy postage?
If you cant buy the stamps then restocking will be fun.
Seller_1knJZZbkAQ6qS
I simply believe Amazon is doing this to raise yet more revenue to fund their expansion free of charge. We have been selling for years and have been able to disburse daily for ever, why it takes 4 days to hit our account though is another matter. They are moving us onto the new system which will basically mean they keep 2 weeks worth of our money, forever. We have never been in a position to not fund a return or chargeback so the justification for this is zero. Fair enough if we were a dodgy new seller selling huge volumes of questionable quality items for next to nothing but we have been selling quality niche market goods for years with a 99% positive lifetime feedback rate. Not sure who I trust less, the Inland Revenue or Amazon, tough choice!
Seller_1knJZZbkAQ6qS
I simply believe Amazon is doing this to raise yet more revenue to fund their expansion free of charge. We have been selling for years and have been able to disburse daily for ever, why it takes 4 days to hit our account though is another matter. They are moving us onto the new system which will basically mean they keep 2 weeks worth of our money, forever. We have never been in a position to not fund a return or chargeback so the justification for this is zero. Fair enough if we were a dodgy new seller selling huge volumes of questionable quality items for next to nothing but we have been selling quality niche market goods for years with a 99% positive lifetime feedback rate. Not sure who I trust less, the Inland Revenue or Amazon, tough choice!
Seller_nMvvMNiZTUmR1
i would take a FIRE BREAK.......stop orders for 5 days to get back on track with cash flow....
Seller_nMvvMNiZTUmR1
i would take a FIRE BREAK.......stop orders for 5 days to get back on track with cash flow....
Seller_9lelPKldw1awP
In the hope that someone at Amazon actually reads these posts I would like to chime in to give our experience of the DD+7 Days Reserve Policy.
Our company makes innovative products and almost everything we have launched on Amazon sells well.
Last Christmas was the best we had ever had in terms of sales thanks to the success of our products on Amazon.
Winning in business is one of the best feelings there is, but Amazon stole all of the joy away from the best sales period in our companies history, because every day felt like we were going under.
Amazon owed us £10,000’s but we were completely broke, after our business overdraft was extended and exhausted, personal credit cards maxed out, we resorted to working capital at 150%+ APR (they don’t tell you that). Ultimately the cost to us in interest and fees was extortionate, meanwhile on paper we shouldn’t have needed to borrow a penny.
The stress each day just trying to figure out how we were going pay for stock to make the products was off the scale.
But this isn’t Amazon’s problem. I can tell what is and why whatever blinkered fools came up with this short sighted DD+7 policy.
The DD+7 Day Disbursement Policy if nothing else is a almighty barrier to growth.
We had several other products lined up to launch last Christmas that would have easily have made us and Amazon £1000’s in additional profits, but we couldn’t afford to buy the stock, because Amazon had all our money.
If you multiply that by the 1000’s of sellers that are affected in the same way and it’s clear to see that Amazon are actually stifling their own biggest source of revenue, Selling Partner Sales.
The defect rate based reserve policy is the only logical way assess a sellers risk and reserve requirement. This should be coupled with Next Day disbursements by the Faster Payments System. Or better still PayPal’s style instant access, instant transfers.
It doesn’t take a genius to work out that if you remove the barriers to growth for your selling partners, they will grow quicker!
I can’t help but think this policy which clearly has nothing to do with actual seller risk has been introduced to either:
1. Funnel desperate sellers towards Amazon Lending “we can’t trust you with your own money but we’ll lend it to you next day no problem! - for an extortionate fee” (Whether deliberate or not THIS IS HAPPENING!)
Or
2. To give their own products on the marketplace an unfair advantage by holding sellers heads underwater. (Whether deliberate or not THIS IS HAPPENING!)
Or
3. Because the Amazon employees responsible for this policy know nothing about SME’s and are utterly incompetent.
Whatever the reason(s) the DD+7 policy and the archaic bank transfer that are employed are not fit for purpose.
On a Platform whose customers demand Next Day or even Same Day Delivery, how can you justify withholding sellers funds for 2 weeks or more?
A business should be able to be started with a minimal outlay and naturally grow. On Amazon you have to already have the money to grow.
This ridiculous and harmful policy is counterintuitive, counterproductive, leads to businesses being forced to make all manner of inefficient and costly decisions to fulfil orders and ultimately Amazon IT’S NOT YOUR MONEY!
Please, please please scrap this Erroneous policy and allow your selling parters to thrive unimpeded and do what we do best.
Seller_9lelPKldw1awP
In the hope that someone at Amazon actually reads these posts I would like to chime in to give our experience of the DD+7 Days Reserve Policy.
Our company makes innovative products and almost everything we have launched on Amazon sells well.
Last Christmas was the best we had ever had in terms of sales thanks to the success of our products on Amazon.
Winning in business is one of the best feelings there is, but Amazon stole all of the joy away from the best sales period in our companies history, because every day felt like we were going under.
Amazon owed us £10,000’s but we were completely broke, after our business overdraft was extended and exhausted, personal credit cards maxed out, we resorted to working capital at 150%+ APR (they don’t tell you that). Ultimately the cost to us in interest and fees was extortionate, meanwhile on paper we shouldn’t have needed to borrow a penny.
The stress each day just trying to figure out how we were going pay for stock to make the products was off the scale.
But this isn’t Amazon’s problem. I can tell what is and why whatever blinkered fools came up with this short sighted DD+7 policy.
The DD+7 Day Disbursement Policy if nothing else is a almighty barrier to growth.
We had several other products lined up to launch last Christmas that would have easily have made us and Amazon £1000’s in additional profits, but we couldn’t afford to buy the stock, because Amazon had all our money.
If you multiply that by the 1000’s of sellers that are affected in the same way and it’s clear to see that Amazon are actually stifling their own biggest source of revenue, Selling Partner Sales.
The defect rate based reserve policy is the only logical way assess a sellers risk and reserve requirement. This should be coupled with Next Day disbursements by the Faster Payments System. Or better still PayPal’s style instant access, instant transfers.
It doesn’t take a genius to work out that if you remove the barriers to growth for your selling partners, they will grow quicker!
I can’t help but think this policy which clearly has nothing to do with actual seller risk has been introduced to either:
1. Funnel desperate sellers towards Amazon Lending “we can’t trust you with your own money but we’ll lend it to you next day no problem! - for an extortionate fee” (Whether deliberate or not THIS IS HAPPENING!)
Or
2. To give their own products on the marketplace an unfair advantage by holding sellers heads underwater. (Whether deliberate or not THIS IS HAPPENING!)
Or
3. Because the Amazon employees responsible for this policy know nothing about SME’s and are utterly incompetent.
Whatever the reason(s) the DD+7 policy and the archaic bank transfer that are employed are not fit for purpose.
On a Platform whose customers demand Next Day or even Same Day Delivery, how can you justify withholding sellers funds for 2 weeks or more?
A business should be able to be started with a minimal outlay and naturally grow. On Amazon you have to already have the money to grow.
This ridiculous and harmful policy is counterintuitive, counterproductive, leads to businesses being forced to make all manner of inefficient and costly decisions to fulfil orders and ultimately Amazon IT’S NOT YOUR MONEY!
Please, please please scrap this Erroneous policy and allow your selling parters to thrive unimpeded and do what we do best.
Seller_9lelPKldw1awP
To respond to the original post.
In the short term, using credit card to pay for everything and repaying the balance with your disbursements is an interest free way to borrow the money needed and get your orders out on time and bridge the funding gap.
An overdraft would be my second choice, although this will incur fees.
If you are sending out over 1500 parcels per year, you can apply for Royal Mail Tracked account, with collections from your home and 30 days credit terms.
I would avoid working capital because the hidden APR’s are extortionate.
Borrowing can only take you so far and ultimately if your sales begin to exceed your available credit you will have issues. But hopefully for starters the above and others suggestions will help you get your Amazon health rating and customer satisfaction up.
You are certainly not alone in your struggles.
Seller_9lelPKldw1awP
To respond to the original post.
In the short term, using credit card to pay for everything and repaying the balance with your disbursements is an interest free way to borrow the money needed and get your orders out on time and bridge the funding gap.
An overdraft would be my second choice, although this will incur fees.
If you are sending out over 1500 parcels per year, you can apply for Royal Mail Tracked account, with collections from your home and 30 days credit terms.
I would avoid working capital because the hidden APR’s are extortionate.
Borrowing can only take you so far and ultimately if your sales begin to exceed your available credit you will have issues. But hopefully for starters the above and others suggestions will help you get your Amazon health rating and customer satisfaction up.
You are certainly not alone in your struggles.
