Amazon Reserve Amount: What is it?

After a buyer places an order, Amazon reserves the order amount in your seller account until confirmation of delivery. This reserve is intended to cover potential or existing buyer dispute-related funds for the seller to pay. Once Amazon deems it unnecessary to reserve funds after resolving related matters, the reserved amount is disbursed to the seller. The reserve amount is not fixed and depends on factors such as seller performance metrics and product return rates, aiming to enhance the reserve amount ratio.

The specific reserve amount policies are as follows:

1.New Sellers: For sellers who ship for the first time within 14 days after registration, all funds in the seller account are reserved by Amazon for the first 14 days.

2.Existing Sellers: For sellers who have been selling on Amazon for more than 14 days, higher amounts are reserved. The rules are as follows:

▪️All sales from the past 7 days will be reserved in the Amazon account. In this case, Amazon settles the account every 14 days, including the order amount shipped 7-21 days ago.
▪️Amazon reserves 5% of the total sales amount from the past 28 days. In this case, Amazon settles the account every 14 days, including 95% of the total sales amount from the past 28 days.

In what cases do Amazon will use reserve money?

1.Credit Card Chargebacks or Claims: Reserved funds are utilized until the resolution of credit card chargebacks or claims.

2.Account Issues: New sellers undergoing account review or having an estimated delivery time beyond the settlement period may experience fund reservations.

3.Account Anomalies: In cases of abnormal changes in total sales or individual account activities detected by the platform, the account undergoes review, and a portion of the account balance is reserved as a security measure.