What is a Reserve Amount? Reserve Amount Review

A reserve amount refers to the amount that Amazon reserves in a seller's account as a reserve for amounts related to potential or existing buyer disputes.

About the reserved amount

Amazon has introduced relevant policies in response to the surge in new Chinese sellers, their fraudulent behavior, and other bad behaviors such as making a quick buck and running away.

New accounts opened after 2016, which mostly ship goods by themselves, have a surge in orders, or have poor store performance, will be reserved. The reservation ratio varies in different situations.

Reservation Policy

New Sellers: For new sellers registered within the past 14 days, if their first shipping date is within 14 days, the reserved amount is the entire balance in the account.

Experienced Sellers: Experienced sellers who have been selling on Amazon for more than 14 days are eligible for the following methods (Amazon will charge the higher amount of the reserve):

A. All sales in the past 7 days will be retained in the Amazon account. In this case, Amazon will settle the account every 14 days, and the settlement will include the amount of orders shipped 7-21 days ago.

B. Amazon will keep 5% of your total sales in the past 28 days. In this case, Amazon will settle your account every 14 days, and the settlement will include 95% of your total sales in the past 28 days. The other 5% will be kept in your Amazon account.

Release

After processing the relevant matters, if Amazon determines that it is no longer necessary to reserve the funds, the seller will be paid the balance of the reserved amount. For security purposes, Amazon will also reserve a portion of your balance if it observes unusual changes in your sales or account behavior and reviews your account.

Optimization suggestions

1. Sending FBA and good account performance are good ways to reduce the reserved amount;

2. If the reserved amount is too much, you can also apply to shorten the transfer cycle.