In this article, we’re answering “What is account level reserve?”
In short, account level reserve refers to the amount of money that Amazon (and other payment processors) hold on account to offset potential expenses, chargebacks, and risks with a seller account.
We will dig into the specifics of account level reserves below while also answering a number of questions we receive on the topic from our members.
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Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- What Is an Account Level Reserve?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
What Is an Account Level Reserve?
An account level reserve is one of the risk mitigation strategies that Amazon uses for financial risk management. It offers both customer and seller account protection, though there is a negative cash flow impact of reserves on sellers.
That said, with proper planning, managing account reserves is possible and over time a seller can reduce the total reserve requirements on their account. Reserve adjustment criteria is based on amazon performance metrics, seller policy compliance, overall account performance, and account risk assessment.
In other words, by increasing the overall performance of a seller account, providing good quality service, and complying with Amazon’s policies, a seller can navigate the Amazon reserve policy and reduce their reserve requirements through a reserve release process.
What Does Reserve Mean for Amazon Sellers?
For Amazon sellers, reserve means that a portion of their funds will be held for several weeks to several months, depending on the risk assessment of their account. These reserves are set aside to protect the interests of a seller’s customers and to combat costs related to chargebacks and fraud claims.
Why Does Amazon Reserve Any of Your Balance?
Amazon reserves part of your balance in order to offset the risks associated with chargebacks, product disputes, fraud claims, and more. By holding a reserve, Amazon is able to ensure that the seller has sufficient funds in their account in order to offset any claims and to protect the interests of the seller’s customers. Not surprisingly, these reserves are most common in high-risk and high chargeback industries.
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Frequently Asked Questions
Below are four of the most common questions we receive from people looking into what an account level reserve is. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
How Long Does Amazon Hold Your Account Level Reserve?
Amazon holds your account level reserves for periods ranging from several weeks to several months. The specific time that account level reserves are held will depend on the business, account performance, and overall risk assessment by Amazon.
How Do You Reduce Account Level Reserve?
You reduce account level reserve by improving the performance metrics of your account, promptly fulfilling orders, complying with all of Amazon’s policies, maintaining healthy inventories, and providing strong and consistent customer support. These steps will improve the overall performance of an account and help to reduce the account level reserves.
Why Does Amazon Keep Putting My Accounts on Hold?
Amazon keeps putting your accounts on hold due to several key reasons, including policy violations, payment issues, performance issues, verification delays, or routine account reviews. Of course, the specific reason your account is held by Amazon will depend on how your account relates to any of these potential issues.
What Is the “Current Amount” on Amazon?
On Amazon, “Current Amount” refers to the current balance of funds in a seller’s account. It is the total amount of money available at a given time, including funds from sales less related charges.
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