How To Get Paid Faster As An Amazon Seller
Amazon makes you wait 14-days to get paid for the products you’ve sold. The good news: you don’t have to. You can get paid the very next day. This guide will show you how.
First things first, why the 2-week wait?
Amazon’s top priority is to make sure their customers have a satisfactory experience shopping on their website. That’s why, when a customer buys from Amazon, they are given time to check the item they’ve purchased, examine its quality and specifications, and if not satisfied, return it.
If you are selling high-quality products that match what you’ve advertised, there’s a low probability of this happening. But in case a customer does want to send back what they’ve bought from you, Amazon will take back the item, and refund them their money.
To process this, the amount from your funds will be utilized - the one that Amazon holds for two weeks. In addition to this, there are a few other scenarios in which Amazon might use the funds they’ve held from you:
- There are issues with your orders being delivered i.e. delays or disputes.
- Customers are filing too many complaints regarding your account.
- Your products are getting too many poor reviews.
However, if no refunds are requested, and all your orders go smoothly, your Amazon payouts will be sent to you via ACH (Automated Clearing House). Once the funds clear, the cash will show up in the bank account connected to your Amazon Seller Central Account.
But even so - a 14 days waiting period is still a big ask.
After all, you’re in the business of selling products, where unexpected opportunities can come at any time, such as:
- An unexpected spike in demand for something you’re selling.
- Unexpected Amazon listing suppression and a slowdown in sales.
- Your supplier’s offer to give you a steep discount for buying items in greater quantities.
- Stockpiling your most-running items due to upcoming shortages due to lockdowns or high demand.
To take advantage or combat such situations, you need to get paid faster by Amazon so you can gain access to cash flow immediately, not two weeks after!
So how can I get paid daily on Amazon?
Luckily, there are several financing services in place that facilitate Amazon sellers to get paid faster for the amount they’ve earned, and skip the 14-day wait. One such service is Payability’s Instant Access.
If you have an Amazon Seller Central account that gets paid in 2-week cycles, you can use Payability’s Instant Access service to get paid daily as an Amazon seller.
What do I need for a Payability Account?
To get started with Payability and start getting paid faster, you’ll want to sign up here. For successful approval, you’ll want to ensure your Amazon seller account fulfills these Payability requirements:
- Is at least 90 days old.
- Averages monthly sales of $10,000
- Has a good reputation i.e. a low number of chargebacks, claims, refunds, and poor reviews.
Based on these three factors, Payability will decide whether to approve your seller account or not. Again, if you’re selling high quality products that your customers are satisfied with, your account shouldn’t have a hard time fulfilling these requirements and getting approved.
How does Payability work?
Your daily Amazon revenue will determine how much you’ll get paid each day. An important thing to keep in mind is that Payability pays 80% of your daily sales amount while keeping the rest on hold in case you get any refunds/claims. The remaining 20% balance is made available as soon as the Amazon payment is disbursed.
At the start of each day, you’ll see the previous day’s amount available, and will have three ways to cash out:
- Wire transfer
- Instant transfer, which lets you immediately get paid. (more on that below).
And what if you need to get paid on the weekend or holidays?
No problem - Payability’s platform works during these critical times as well, letting you initiate fund transfers without any issues. This is what their Instant Access service is all about.
By now, you might be thinking exactly how much does Payability charge in return for providing such a service? Well, there aren't any fixed fees. Instead, you’ll be charged a 2% monthly commission of your Amazon payouts.
For example, let’s say you’re generating sales of $10k/day. Payability will make 80% of this amount available within the next 24 hrs. This means you’ll have $8k to spend on your business, and will be able to ensure your sales don’t suffer due to cash issues. And two weeks after, once you get the $10k from Amazon, a 200$ commission of that ($200) will go to Payability, by which time you’ll have earned enough additional profits to pay for that and some more!
Some final advice: Consider Payability’s Instant Advance
In addition to offering Amazon seller’s the ability to get paid faster with Instant Access, Payability offers Instant Advance; flexible funding solutions for Amazon sellers that need capital to fuel growth. Instant Advance offers up to $250,000 for Amazon sellers to spend on inventory or marketing. And if you use Payability’s Seller Card, you can earn up to 2% cash back on purchases.
You can prequalify with $10,000/mo in sales and 9 months of selling history. Approvals are fast and easy and no credit checks are required.
The end result - next to no cash flow issues
Cash flow issues can have a dramatic sway on how well your seller account performs on Amazon. Because no cash = no supply orders = no future inventory = lost sales.
There is, after all, a huge variety of products that your customers can buy instead, or multiple sellers from whom they can buy from on Amazon. Plus, let’s not forget the dreaded Amazon algorithm that’s constantly judging your product page’s performance, and ranking it based on how customers are interacting with it and whether or not you have stock. And whenever you stock out, you lose valuable momentum.
With these factors at play, one thing is clear: you cannot afford to go out of stock, else you risk losing customers.
This is according to Harvard Business Review:
“Depending on the product category, 7% to 25% of consumers faced with a stock-out will continue shopping but won’t buy a substitute for their desired item at the store; 21% to 43% will actually go to another store to buy the item. Overall, our study suggests, retailers can lose nearly half of intended purchases when customers encounter stock-outs.”
And why do stock-outs happen? The same study says:
… 72% of stock-outs were due to faulty in-store ordering and replenishing practices.
But thanks to Payability, all your cash flow issues can be resolved, or at least dramatically minimized. You do your sales for the day, and you cashout the revenue you’ve earned. You place a new order to restock your inventory and the cycle repeats.
If you're interested in exploring additional funding options, check out this post highlighting ways to get funding for your ecommerce business.
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