If cross-border e-commerce were a marathon, cash flow would be the energy supply that sustains runners throughout the race. Amazon's upcoming "DD+7" fund reservation policy, set to take effect on March 12, 2026, introduces new challenges to this long-distance competition. The new regulation means that after a seller's goods are delivered, payment will be frozen as "reserve funds" for an additional seven days before becoming available for withdrawal.
For cross-border sellers already grappling with multiple financial pressures including inventory, logistics, and advertising costs, this change presents even more severe cash flow challenges. Under the new rules, if an order completes on the 1st and gets delivered on the 3rd, the seller won't receive payment until the 10th. Logistics delays could further extend this payment cycle.
Financial Strain on Sellers
Pilot implementations of this policy in certain markets have shown that it may cause sellers' financial statements to show "negative profits," increasing operational risks. The extended payment holding period creates significant working capital pressure, particularly for small and medium-sized businesses that rely on timely cash inflows to maintain operations.
Potential Solutions
To adapt to these changes, sellers must focus on optimizing capital turnover efficiency. One possible solution comes from cross-border financial service providers offering accelerated payment solutions. These services connect directly with Amazon's backend through APIs, enabling "payment upon sale" by advancing settlement of reserved funds with same-day availability and credit limits reaching up to $10 million.
Such financial tools could help sellers mitigate the cash flow pressures created by Amazon's new policy. However, they also represent additional costs that businesses must factor into their financial planning.
Preparing for the Future
The implementation of Amazon's "DD+7" policy will undoubtedly require cross-border sellers to demonstrate greater capital management capabilities. Businesses should prepare in advance by exploring various financial solutions, optimizing their cash management strategies, and building sufficient reserves to weather the extended payment cycles.
As the e-commerce landscape continues to evolve, sellers who proactively address these financial challenges will be better positioned to maintain healthy operations and sustainable growth in the increasingly competitive cross-border marketplace.