Amazon Policy Changes

Missing Revenue in Amazon Seller Central? Deferred Transactions Explained

Post by
Andrew Quintrell

Introduction

Amazon has recently introduced a change to its Seller Central payment system, replacing the old “Account-Level Reserve” with a new “Deferred Transactions” system as of November 2024. While this change introduces useful features for tracking withheld funds, it has also impacted the way revenue appears on statements. Many sellers may notice that their revenue appears lower on the “All Statements” page or on the “Reports epository” download, leading to confusion. This guide will break down the new system, how to access your deferred transactions, and what the changes mean for your payment reports.

How the Old Account-Level Reserve Worked

Under the previous “Account-Level Reserve” system, Amazon withheld a portion of funds to cover potential refunds, returns, or other transaction adjustments. In the “All Statements” and “Reports Repository” breakdown, Amazon would show the full revenue for the settlement period and then list the withheld funds as “current reserve.” This made it clear which portion of the revenue was withheld, allowing sellers to see the total amount earned and the reserve amount deducted from that total.

What’s Different About Deferred Transactions?

With the new “Deferred Transactions” system, Amazon now withholds funds at an individual transaction level, detailing specific orders that have not yet been paid out. However, unlike before, these deferred funds no longer appear in the “All Statements” or “Reports Repository” breakdown. The total revenue shown for each settlement period now only includes released funds, meaning any deferred revenue is excluded entirely from this figure.

This change is significant: sellers using the “All Statements” or “Reports Repository” may initially think that Amazon has missed some of their revenue. This could lead to confusion and alarm if you’re unaware of the new setup. Deferred revenue is still there, but it’s now separated out and doesn’t show up in the main revenue figure until it’s released.

How to Find Deferred Transactions in Seller Central

To locate your deferred transactions, follow these steps:

  1. Go to     the Payments tab in Seller Central.
  2. Select     Transaction View.
  3. In the     filter options, set the Transaction Status filter to “Deferred     Transactions.”

This will display all transactions Amazon has withheld, showing specific details such as the amount and expected release date. You can also download a “Deferred Transactions” report under the Payments Reports section to keep a detailed record of all withheld funds.

Why This Change Matters for Sellers

This new setup offers improved transparency for individual deferred transactions, but it also presents a challenge: because deferred funds are no longer included in the revenue on the “All Statements” breakdown, many sellers may not realize part of their revenue is still pending.

With this update, the key points to keep in mind are:

  • Deferred     Transactions Excluded from Total Revenue: Unlike the previous system,     the total revenue for a settlement period does not reflect withheld funds.
  • Newly     Detailed View: Sellers now have an option to see each transaction’s     deferral reason and anticipated release date in the “Deferred     Transactions” filter.
  • Understanding     the “All Statements” Discrepancy: If your “All Statements” page shows     lower-than-expected revenue, it’s likely due to deferred transactions not     yet included in the payout.

Conclusion

The transition from Account-Level Reserve to Deferred Transactions represents a shift towards more detailed information for sellers. While the breakdown of deferred transactions offers greater transparency, the exclusion of deferred funds from the “All Statements” page requires a careful look to avoid misunderstandings about your revenue.

If you’re concerned that Amazon has missed part of your earnings in a settlement, check your Deferred Transactions filter under Payments > Transaction View. This can help clarify where your revenue is and when you can expect withheld funds to be released.

By staying informed, you can manage cash flow more effectively and keep a closer eye on your Amazon Seller Central revenue.

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