How Amazon Pays FBA Sellers

Amazon pays FBA (Fulfillment by Amazon) sellers through a structured process that ensures timely and accurate disbursement of funds. Here's an in-depth look at how Amazon handles payments to its FBA sellers.

When you sell products through Amazon's FBA program, Amazon takes care of storage, packaging, and shipping for you. However, getting paid for your sales involves several steps:

1. Sales Revenue Collection: When a customer purchases your product, the revenue is collected by Amazon. This includes the sale price of the product minus any applicable fees. Amazon deducts its selling fees, which typically include referral fees and FBA fees, from this amount.

2. Fee Deductions: Amazon's fee structure consists of several components:

   • Referral Fees: A percentage of the selling price that varies by category.
   • Fulfillment Fees: Charges for picking, packing, and shipping the product. These fees depend on the size and weight of the item.
   • Storage Fees: Monthly fees for storing your products in Amazon’s warehouses, which vary based on the time of year and the amount of space your inventory occupies.

   These fees are automatically deducted from your sales revenue before any payment is made to you.

3. Payment Schedule: Amazon disburses payments to FBA sellers on a bi-weekly basis. Payments are typically made every two weeks, but the exact timing can vary based on your account and any holidays or weekends.

4. Payment Method: Funds are transferred to your bank account or Amazon Payments account. To receive payments, you need to set up and verify your bank account details in your Amazon Seller Central account. Ensure that your payment information is accurate to avoid delays.

5. Settlement Reports: Amazon provides detailed settlement reports through Seller Central. These reports include information about sales, fees, and payments. Reviewing these reports helps you track your earnings and understand the deductions applied.

6. Account Balance and Reserve Funds: Amazon may hold a portion of your funds in reserve to cover potential refunds, chargebacks, or account-related issues. This reserve is generally a small percentage of your total earnings and is released according to Amazon’s policies.

7. Currency and Fees: For international sellers, Amazon handles currency conversion if you are selling in a different currency from your bank account's currency. Be aware of any additional fees that may apply for currency conversion or international transactions.

8. Account Health and Performance: Your account health and performance metrics can influence your payment experience. Maintaining a high level of customer satisfaction and adhering to Amazon’s policies helps ensure smooth payment processing.

9. Chargebacks and Refunds: If a customer initiates a chargeback or return, Amazon may deduct the amount from your account balance. Ensure you keep track of such adjustments in your settlement reports to understand their impact on your overall earnings.

10. Tax Considerations: Amazon may withhold taxes based on the information you provide in your tax interview. Be sure to keep your tax information updated to comply with tax regulations and avoid issues with your payments.

In summary, Amazon’s payment process for FBA sellers involves collecting sales revenue, deducting fees, and disbursing payments on a bi-weekly basis. Sellers receive detailed reports and need to manage their accounts carefully to ensure accurate and timely payments. By understanding these aspects, you can better manage your FBA business and optimize your earnings.