In late 2024, Amazon introduced a new payout policy for sellers: Delivery Date + 7 days (DD+7). Under this system, funds from a sale are held for seven days after delivery before becoming eligible for payout. These held funds are now classified as “Deferred Transactions” in Seller Central.
The DD+7 policy reflects Amazon’s effort to standardise payouts, reduce fraud, and cover potential refunds, chargebacks, and A-to-Z claims. Although the policy is straightforward in principle, it introduces notable complexity for sellers and finance teams responsible for revenue recognition and cash flow management.
Why DD+7 matters
For Amazon sellers and ecommerce finance professionals, DD+7 has three primary implications:
- Cash flow visibility
Funds that are technically “earned” remain inaccessible for seven days, which can affect liquidity. Sellers with high-volume operations or tight working capital must plan for these deferred payouts to avoid cash shortfalls. - Revenue recognition
Accounting for sales in the correct period becomes more complex. Traditional accrual methods may need adjustment to account for deferred transactions, ensuring reported revenue aligns with the timing of cash availability and the risk of returns. - Operational planning
Delays in access to funds can affect inventory purchasing, supplier payments, and operational budgeting. Understanding the timing of deferred payouts allows for informed decision-making and reduces the risk of disruptions to supply chains.
Managing DD+7 in practice
Effective management of DD+7 requires clear tracking of deferred transactions. Key considerations include:
- Segregating deferred funds: distinguish between standard DD+7 transactions and any B2B or specialised deferrals.
- Forecasting releases: monitor expected payout dates to anticipate cash flow and plan expenditure accordingly.
- Aligning accounting systems: ensure deferred sales, refunds, fees, and taxes are recognised in the correct reporting periods.
- Audit-readiness: maintain clear records of deferred and released transactions to support compliance and financial reporting.
Several software solutions now automate aspects of DD+7 reporting, allowing sellers and finance teams to reconcile deferred balances efficiently and reduce manual errors. We are proud to have partnered with Link My Books, providing our clients with early access to their beta platform. This partnership gives sellers real-time visibility of deferred transactions, separates standard DD+7 and B2B reserves, and supports accurate revenue recognition across accounting periods. The integration also offers optional auto-posting to Xero or QuickBooks, streamlining reconciliation and ensuring audit-ready reporting.
Strategic takeaways
- Plan for liquidity: incorporate deferred payouts into cash flow models to avoid surprises.
- Enhance forecasting: use historical data and real-time monitoring to anticipate fund availability.
- Ensure accurate reporting: align revenue recognition policies with deferred transaction rules.
- Mitigate risk: understand the potential for refunds or claims and their impact on deferred funds.
DD+7 represents more than a change in Amazon’s payout schedule; it is a shift that requires careful accounting and proactive financial management. Sellers and finance teams that adapt quickly will gain better visibility, improve operational planning, and maintain accuracy in revenue reporting.
For businesses navigating these changes, expert guidance can help implement reporting processes, integrate accounting tools, and ensure financials remain robust and compliant.
For more information, or to discuss your circumstances in more detail, get in touch with Anya by clicking the button below.
