Settlement Cycle
Settlement PeriodSettlement Cycle
Amazonwillbranchtosellerstimespaceweek, usuallyfor14days.
Payment SchedulePayment Schedule
Amazon'stimespace, usuallyper14daysbranchonetimes.
ReserveReserve
Amazon forshouldtoatReturnandRefundandonepartial, usuallyforSales10%-30%.
Release Dateday
Reservebyandcanuseatwithdrawalday.
Fee Deductions
Referral FeeReferral Fee
Amazon chargessalesReferral Fee, usuallyforSales8%-15%, based oncategorydifferentandchange.
FBA FeeFBACost
Amazon chargesFBALogisticsCost, includingStorage Fee, Fulfillment Feeetc..
Closing FeeClosing Fee
toproduct(ifbooks, music, video)fixedClosing Feeuse.
Variable Closing FeeVariable Closing Fee
based onproductpricechangeClosing Feeuse, applicableatproduct.
Advertising FeeAdvertising
Amazon AdvertisingCost, atsettlementtimefromin.
Fund Transfer
Gross SalesTotal Sales
productsalesamount, notanyCost.
Net SalesNet Sales
Referral FeeandotherCostafterSales.
PayoutPayment Amount
Amazonpracticalbranchtosellersamount, i.e.Net SalestoReserveandRefund.
Transaction ReportTransaction Report
Amazon providesdetailedTransaction Report, includeperorder'sincomeandCost.
Payment Methods
Direct Depositdirectlydeposit
Amazondirectlywillentersellersbank account.
Wire Transfer
throughinternationalwilltosellersbank account, usuallyuseatlargefund.
Checkbranch
Amazon throughbranchmethodbranch, speedrelativelyslow.
Third-Party PaymentThird-Party Payment
throughthirdsidePayment Tools(ifWorldFirst, Payoneer)receive.
abnormalsituation
Payment HoldPayment Hold
AmazonSuspensiontowardssellers, usuallyisbecauseaccountatriskorreview.
Account SuspensionAccount Freeze
Amazon freezesseller account, sellersnoconductanyoperation, includingwithdrawal.
Funds WithheldFund Withholding
Amazonsellersfund, useatshouldtoatclaimordispute.
Refund OffsetRefund Offset
buyerReturns & Refundstime, Amazonfromsellersaccountbalanceinshouldamount.
Financial Management Risks: 20 Common Error Cases
❌ Error 1: No Buffer Funds in Cash Flow Budget
Mistake: Use all funds for purchasing and ads, leave no reserve for unexpected situations.
Consequence: When returns surge, account review, or ad budget overrun, capital chain breaks, unable to operate normally.
Correct: Reserve at least 20%-30% funds as emergency reserve, ensure business runs normally in unexpected situations.
Consequence: When returns surge, account review, or ad budget overrun, capital chain breaks, unable to operate normally.
Correct: Reserve at least 20%-30% funds as emergency reserve, ensure business runs normally in unexpected situations.
❌ Error 2: Ignoring Reserve in Payment Cycle Calculation
Mistake: Think all payments received after 14 days, ignore Amazon's reserve policy.
Consequence: Actual payment only 70%-80%, budget plan completely off, leading to fund gap.
Correct: Understand reserve ratio (usually 10%-30%), reserve this fund gap in cash flow planning.
Consequence: Actual payment only 70%-80%, budget plan completely off, leading to fund gap.
Correct: Understand reserve ratio (usually 10%-30%), reserve this fund gap in cash flow planning.
❌ Error 3: Ignoring Settlement Cycle Delay
Mistake: Think payment received on order day, don't consider settlement cycle and bank transfer time.
Consequence: Actual payment needs 14 days settlement + 3-5 days bank transfer, fund plan completely misaligned.
Correct: Set payment cycle as 14+5=19 days, fully consider delay in cash flow plan.
Consequence: Actual payment needs 14 days settlement + 3-5 days bank transfer, fund plan completely misaligned.
Correct: Set payment cycle as 14+5=19 days, fully consider delay in cash flow plan.
❌ Error 4: Peak Season Stock Planning Unreasonable
Mistake: Large stock before peak season, invest all funds, don't consider payment delay during peak season.
Consequence: During peak season Amazon review stricter, reserve ratio may increase, payment delay leads to unable to restock.
Correct: Reserve sufficient funds before peak season, stage stock, avoid investing all funds at once.
Consequence: During peak season Amazon review stricter, reserve ratio may increase, payment delay leads to unable to restock.
Correct: Reserve sufficient funds before peak season, stage stock, avoid investing all funds at once.
❌ Error 5: Ad Spend Mismatch with Payment
Mistake: Set ad budget $100/day, but daily sales only $50, ad spend far exceeds payment.
Consequence: Ad spend accumulates, account balance keeps dropping, eventually funds exhausted unable to operate.
Correct: Ad budget should be within 15%-25% of sales, ensure spend matches payment.
Consequence: Ad spend accumulates, account balance keeps dropping, eventually funds exhausted unable to operate.
Correct: Ad budget should be within 15%-25% of sales, ensure spend matches payment.
❌ Error 6: Ignoring Return Rate Impact on Payment
Mistake: Calculate payment based on 100% conversion, don't consider return and refund impact on actual income.
Consequence: Actual payment reduced by 5%-10% return rate, profit calculation completely distorted.
Correct: Include return rate in cash flow planning, reserve 5%-10% return loss space.
Consequence: Actual payment reduced by 5%-10% return rate, profit calculation completely distorted.
Correct: Include return rate in cash flow planning, reserve 5%-10% return loss space.
❌ Error 7: Multi-Account Funds Not Isolated
Mistake: Multiple Amazon accounts share one bank account for receiving funds, funds mixed together.
Consequence: Account association risk increases, once one account under review, all account funds may be frozen.
Correct: Each account uses independent receiving account, funds strictly isolated, reduce association risk.
Consequence: Account association risk increases, once one account under review, all account funds may be frozen.
Correct: Each account uses independent receiving account, funds strictly isolated, reduce association risk.
❌ Error 8: Exchange Rate Risk Not Hedged
Mistake: USD payment directly converted to RMB, don't consider exchange rate fluctuation impact on profit.
Consequence: When exchange rate drops from 6.5 to 7.0, profit shrinks 7.7%, long-term accumulated loss huge.
Correct: Use third-party receiving tools to lock exchange rate, or batch convert when rate favorable, hedge exchange risk.
Consequence: When exchange rate drops from 6.5 to 7.0, profit shrinks 7.7%, long-term accumulated loss huge.
Correct: Use third-party receiving tools to lock exchange rate, or batch convert when rate favorable, hedge exchange risk.
❌ Error 9: Funds Frozen During Account Review
Mistake: When account enters review period, no reserve funds to continue operation.
Consequence: Funds frozen 30-90 days during review, unable to pay supplier, supply chain breaks.
Correct: Reserve at least 30 days operation funds as review reserve, ensure business runs during review.
Consequence: Funds frozen 30-90 days during review, unable to pay supplier, supply chain breaks.
Correct: Reserve at least 30 days operation funds as review reserve, ensure business runs during review.
❌ Error 10: Supplier Payment Cycle Mismatch with Payment Cycle
Mistake: Supplier requires payment within 30 days, but Amazon payment cycle 14 days + reserve, fund turnover difficult.
Consequence: Supplier payment due but Amazon payment not arrived, must delay payment or borrow high-interest loan.
Correct: Choose suppliers with more flexible payment cycle (60 days), or use credit loan to transition.
Consequence: Supplier payment due but Amazon payment not arrived, must delay payment or borrow high-interest loan.
Correct: Choose suppliers with more flexible payment cycle (60 days), or use credit loan to transition.
❌ Error 11: Not Monitoring Account Balance Warning
Mistake: Never check Amazon account balance, only find insufficient funds when balance negative.
Consequence: When account balance negative, Amazon pauses ads, restricts shipping, business completely stops.
Correct: Monitor account balance daily, set warning line (like balance below $500), add funds timely.
Consequence: When account balance negative, Amazon pauses ads, restricts shipping, business completely stops.
Correct: Monitor account balance daily, set warning line (like balance below $500), add funds timely.
❌ Error 12: New Product Investment Not Considering Trial Cost
Mistake: Invest all funds in new product launch, don't consider product failure risk and trial cost.
Consequence: All funds lost after product fails, unable to test other products, business stalls.
Correct: New product investment within 10%-20% of total funds, reserve funds to test multiple products.
Consequence: All funds lost after product fails, unable to test other products, business stalls.
Correct: New product investment within 10%-20% of total funds, reserve funds to test multiple products.
❌ Error 13: FBA Storage Fee Over Budget
Mistake: Large shipment to FBA, don't consider peak season storage fee surge (peak season 3x normal).
Consequence: Peak season storage fee from $0.15/cubic foot to $0.69, profit eaten by storage fee.
Correct: Precisely calculate storage cost before peak season, control inventory turnover, avoid long-term storage fee.
Consequence: Peak season storage fee from $0.15/cubic foot to $0.69, profit eaten by storage fee.
Correct: Precisely calculate storage cost before peak season, control inventory turnover, avoid long-term storage fee.
❌ Error 14: Third-Party Payment Account Info Error
Mistake: Payment account bank info filled incorrectly, causing funds unable to deposit normally.
Consequence: Payment returned or frozen, fund deposit delayed 15-30 days, affects cash flow.
Correct: Carefully verify bank info before setting payment account, test small transfer to confirm account correct.
Consequence: Payment returned or frozen, fund deposit delayed 15-30 days, affects cash flow.
Correct: Carefully verify bank info before setting payment account, test small transfer to confirm account correct.
❌ Error 15: Promotion Period Profit Calculation Error
Mistake: Calculate profit at original price during promotion, ignore discount impact on gross margin.
Consequence: After 30% promotion discount, actual gross margin may only 5%, profit completely underestimated.
Correct: Calculate profit at promotion price during promotion, ensure discount cost included in gross margin calculation.
Consequence: After 30% promotion discount, actual gross margin may only 5%, profit completely underestimated.
Correct: Calculate profit at promotion price during promotion, ensure discount cost included in gross margin calculation.
❌ Error 16: Ignoring Tax Impact on Net Profit
Mistake: Only look at gross profit don't consider tax, think profit enough to cover operation cost.
Consequence: VAT, income tax etc. may account for 20%-30% of profit, actual net profit shrinks significantly.
Correct: Reserve tax ratio in profit calculation, ensure net profit enough to cover all costs.
Consequence: VAT, income tax etc. may account for 20%-30% of profit, actual net profit shrinks significantly.
Correct: Reserve tax ratio in profit calculation, ensure net profit enough to cover all costs.
❌ Error 17: Large Purchase Without Contract
Mistake: Large purchase only verbal agreement, no formal contract, supplier doesn't ship after payment.
Consequence: After $50,000 payment supplier delays shipping or quality issues, unable to pursue liability, fund loss.
Correct: Large purchase must sign formal contract, specify delivery time, quality standard, breach liability.
Consequence: After $50,000 payment supplier delays shipping or quality issues, unable to pursue liability, fund loss.
Correct: Large purchase must sign formal contract, specify delivery time, quality standard, breach liability.
❌ Error 18: Inventory Backlog Funds Cannot Turnover
Mistake: Large inventory purchase, but sales slow, inventory turnover days exceed 60 days.
Consequence: Funds occupied by inventory, unable to turnover purchase new products, business development stalls.
Correct: Control inventory turnover within 30-45 days, clear slow-moving products timely, release funds.
Consequence: Funds occupied by inventory, unable to turnover purchase new products, business development stalls.
Correct: Control inventory turnover within 30-45 days, clear slow-moving products timely, release funds.
❌ Error 19: Not Analyzing Transaction Report Blind Decision
Mistake: Never download Amazon transaction report, only look at account balance, don't understand fee details.
Consequence: Don't know commission ratio, FBA fee, ad fee etc. specific data, unable to optimize cost.
Correct: Download transaction report monthly, analyze each fee ratio, targeted optimize cost structure.
Consequence: Don't know commission ratio, FBA fee, ad fee etc. specific data, unable to optimize cost.
Correct: Download transaction report monthly, analyze each fee ratio, targeted optimize cost structure.
❌ Error 20: Single Payment Channel Risk Concentration
Mistake: Only use one third-party payment account, no backup payment channel set.
Consequence: When payment account has issue (like account frozen, system failure), all funds unable to deposit.
Correct: Set 2-3 payment channels as backup, ensure alternative when single channel has issue.
Consequence: When payment account has issue (like account frozen, system failure), all funds unable to deposit.
Correct: Set 2-3 payment channels as backup, ensure alternative when single channel has issue.