How does Amazon FBA pay you?

Written By Ecommerce Beast

Every article is researched and written by e-commerce experts and then peer-reviewed by our team of editors.

Amazon FBA, or Fulfillment by Amazon, is a popular program that allows sellers to store their products in Amazon’s fulfillment centers and have Amazon handle the shipping and customer service for those products. This allows sellers to focus on other aspects of their business, such as product development and marketing, while Amazon takes care of the logistics. But how does Amazon FBA pay you, and what payment methods are available?

Firstly, let’s talk about how Amazon FBA fees are calculated. Amazon charges two types of fees for FBA: fulfillment fees and storage fees. Fulfillment fees are charged based on the size and weight of the product being sold, as well as the destination of the shipment. Storage fees are charged based on the amount of space the product takes up in Amazon’s warehouses, and are charged on a monthly basis. These fees are deducted from your sales revenue before you are paid.

Payment Timelines:

Amazon pays sellers every two weeks, typically 14 days after the end of the payment period. For example, if the payment period ends on the 15th of the month, sellers can expect to receive payment on the 29th of the month. However, it’s worth noting that it can take a few days for the payment to clear and appear in your account.

Payment Methods:

Now, let’s talk about the payment methods available for Amazon FBA. Amazon offers several payment options for sellers, including:

  1. Direct deposit: This is the most common payment method used by Amazon sellers. With direct deposit, Amazon transfers your earnings directly into your bank account. To set up direct deposit, you’ll need to provide your bank account information, including your account number and routing number.
  2. Amazon Pay: Amazon Pay is a payment service offered by Amazon that allows customers to use their Amazon account to make purchases on other websites. As an Amazon seller, you can also use Amazon Pay to receive payments from customers. This option is only available in select countries.
  3. Amazon gift card: If you prefer, you can choose to receive your earnings in the form of an Amazon gift card. This option may be useful if you plan to use the earnings to purchase products on Amazon.
  4. Check: Finally, if you don’t have a bank account or prefer not to use direct deposit, you can choose to receive a paper check in the mail. However, keep in mind that this option may take longer to receive and may incur additional fees.

It’s important to note that Amazon may withhold a portion of your earnings for various reasons, such as returns or disputes. This is known as a reserve, and it helps to ensure that Amazon has funds available to cover any potential liabilities. The amount of the reserve varies based on your account history and other factors. Also, in order to be eligible for Amazon payments, you will have to be a resident of an Amazon seller-supported country.

In conclusion, Amazon FBA pays sellers every two weeks, and offers several payment methods, including direct deposit, Amazon Pay, Amazon gift card, and paper check. As an Amazon seller, it’s important to understand the fees associated with FBA, as well as the payment methods available, so you can choose the option that works best for you. With the right approach and a solid understanding of the payment process, Amazon FBA can be a lucrative opportunity for sellers looking to grow their businesses.