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Thu May 14 2026 15:48:07

Amazon DD+7 Is as Bad as Seller Feared 30 Days In

By: Reader

Dear Ina,
After being about 30 days into the Amazon DD+7 I thought I would give a real world update!

Amazon's new DD+7 payout policy has become extremely punitive for established third-party sellers, especially those who are overwhelmingly FBA. In our case, nearly 100% of orders are fulfilled and shipped by Amazon, yet Amazon is now holding our funds for over three weeks before disbursement. At any given time, they are retaining more than $8,000 of our money in "deferred transactions," even though Amazon controls the inventory, shipping speed, tracking, delivery confirmation, and customer communication.

Amazon claims these extended holds are "to protect sellers," but in reality FBA sellers are being forced to finance Amazon's own fulfillment delays and operational issues. If a shipment is delayed, it is typically due to Amazon's warehouse processing or carrier network - not the seller. Yet the seller bears the cash flow burden.

The recent addition of "Express Payout" makes the situation even worse, because Amazon now effectively asks sellers to pay an additional fee to access money they already earned.

For small and mid-sized businesses, this creates a massive working capital strain. Inventory must still be purchased, payroll met, shipping supplies bought, and advertising paid, while Amazon continues extending payout timelines further and further. What was once a manageable settlement cycle has quietly become a rolling reserve system where Amazon continuously holds weeks of seller revenue.
Steve

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