Amazon DD+7 Policy Explained - 3fin Weekly Briefing #27
Also this week: 2025 FBA Fee Freeze, Black Friday 2024
News of the Week
Black Friday 2024 Promises Big Sales for Amazon Sellers: Amazon's Black Friday event will run from November 21 to December 2, 2024, featuring significant discounts across 35 product categories, including its flagship devices.
2025 FBA Fee Freeze: Amazon has announced that there will be no fulfillment fee increases for sellers in 2025. The company aims to focus on stability and simplicity for sellers after introducing new fees related to inbound shipping and low inventory levels in 2024.
Amazon Coupon Fee Reimbursement for New FBA Products: Amazon is offering a limited-time reimbursement of the $0.60 coupon fee for coupons applied to newly launched FBA products that became buyable after November 2, 2024, valid until January 31, 2025.
New Amazon Billing Document APIs: Amazon is launching new APIs that allow sellers to programmatically retrieve and download individual billing documents, including invoices and credit memos, in PDF and other formats.
Deepdive: Amazon DD+7 Policy
Amazon has started rolling out the DD+7 (Delivery Date + 7) policy, and it’s a significant change that might already be impacting your business. If you’re wondering how this will affect your cash flow and what you can do about it, here’s a quick breakdown.
What’s Changing?
Under DD+7, Amazon now holds your funds for seven days after the delivery date before releasing them. This means you might wait up to three weeks from the order date to access your earnings.
For example: A customer orders on the 1st, the item is delivered on the 3rd, and you’ll only see the funds released by the 10th.
The funds stay in "Deferred Transactions", which you can view in Seller Central.
Why This Hits Hard
If you’re selling in the EU or UK, this is a double blow. Back in August 2024, Amazon started charging VAT on its fees, straining cash flows even further. Combined with DD+7, your ability to restock inventory or plan finances is likely taking a hit.
The delay in accessing your revenue isn’t just an inconvenience—it’s a serious cash flow challenge that could leave you scrambling to cover expenses or fulfill new orders.
What Can You Do?
Here are some steps to adapt:
Ask Amazon for an “Extension”:
If you’ve been hit by the DD+7 policy, you may still be able to get away with it. Reach out to Amazon and ask for an “extension” until September 2025. We detailed the steps to follow in our Deferred Transaction Guide.
Track Deferred Transactions:
Keep a close eye on your Seller Central dashboard to understand when funds will be released.
Revisit Cash Flow Projections:
Update your financial plans to account for these delays and adjust your spending accordingly.
Negotiate Supplier Terms:
Try to extend payment terms with suppliers to match your new cash flow reality.
Diversify Sales Channels:
If possible, explore other platforms like eBay or Shopify to reduce reliance on Amazon’s payment schedule.
Looking Ahead
This new policy is undoubtedly frustrating, especially for smaller sellers who rely on quick payouts to sustain their businesses. We’ll continue to share tips and updates to help you navigate changes like these.
For now, keep advocating for fairer policies through seller feedback channels, stay informed, and adjust your strategies where possible.
Happy Black Friday
Happy Black Friday and Cyber Monday! We know this week is one of the busiest (and most rewarding!) times of the year for Amazon sellers like you. Here’s to skyrocketing sales, smooth operations, and a record-breaking Q4. Best of luck, and don’t forget to take a moment to celebrate your hard work!
We hope you’ve enjoyed this week’s briefing. If you wish to learn more about 3fin, you can book a call or try it for free.
If you enjoyed this newsletter, don’t forget to subscribe and share it with your network!