Imagine selling products through Amazon, only to have your funds frozen for seven full days after customer delivery before you can access them. This isn't hypothetical—it's Amazon's new "DD+7" payment policy taking effect globally on March 12, 2026. The change will significantly impact sellers' cash flow management. What exactly does this policy entail, and how can sellers adapt to maintain competitiveness under these new rules?
Understanding Amazon's "DD+7" Policy: Scope and Implementation
The "DD+7" policy (Delivery Date + 7 days) means that from the date an order is delivered to the customer, payment will be frozen for seven days before becoming available for withdrawal. This policy will apply universally across all Amazon marketplaces (North America, Europe, Japan, Middle East, Latin America, etc.) with no exceptions.
The payment flow works as follows:
- Order Placement: When a buyer completes payment, the transaction amount is temporarily held.
- Delivery: Once the product reaches the buyer, the order status updates to "Delivered."
- Reserve Account: Funds move to a reserve account instead of becoming immediately available.
- 7-Day Hold: The amount remains frozen for seven calendar days.
- Availability: After the holding period, funds convert to withdrawable balance.
- Withdrawal: Sellers may choose automatic disbursement or manual withdrawal.
For example: If a seller completes a transaction on January 1 with delivery occurring on January 3, funds won't be accessible until January 11.
Amazon may extend the holding period based on seller account risk and performance metrics (Order Defect Rate, return rates, complaint rates, etc.). New accounts or those with poor performance metrics may face longer holds. Amazon states this policy aims to reduce financial risks from returns, disputes, and fraud while protecting buyer rights and enhancing platform-wide risk management.
Potential Impacts of the "DD+7" Policy on Sellers
While the policy doesn't introduce additional fees, the extended settlement period will slow cash flow—particularly challenging for small and medium sellers reliant on quick access to funds.
- Increased Cash Flow Pressure: Longer cycles may limit inventory replenishment, advertising budgets, and product development capabilities.
- Marketplace Variations: Delivery timelines differ across regions and fulfillment methods (FBA/FBM), creating uneven cash flow impacts. Remote markets like Latin America will face greater challenges.
- Operational Adjustments: Sellers must refine strategies to accommodate slower fund accessibility.
Strategic Recommendations for Sellers
To navigate these changes, sellers should focus on cash flow optimization, logistics efficiency, performance improvement, and financial tool utilization.
1. Enhanced Cash Flow Management
- Recalculate cash flow projections under DD+7 parameters, establishing detailed monthly/quarterly financial plans.
- Maintain 30-60 days of operating reserves for contingencies.
- Prioritize FBA inventory turnover to maximize capital efficiency and minimize overstock.
2. Logistics and Order Optimization
- Select reliable shipping methods with consistent delivery times to accelerate fund availability.
- Focus on higher-margin, lower-return products to reduce financial exposure.
- Streamline order processing to minimize fulfillment timelines.
3. Performance Enhancement
- Maintain rigorous quality control to minimize returns and negative feedback.
- Strengthen customer service responsiveness to prevent A-to-Z claims.
- New accounts should prioritize compliance to build positive performance history.
4. Financial Tool Utilization
- Consider Amazon Lending for short-term liquidity needs.
- Leverage the "On-Demand Payment" feature for withdrawal flexibility (note: this doesn't shorten the seven-day hold).
5. Compliance Monitoring
- Regularly review the "Pending Transactions Report" to track reserve amounts and release dates.
- Stay informed about policy updates to adjust strategies proactively.
Conclusion
Amazon's DD+7 policy presents significant operational challenges, particularly regarding cash flow management. However, sellers who implement strategic adjustments in financial planning, logistics, performance metrics, and tool utilization can maintain competitiveness. Those receiving policy notifications should immediately develop contingency plans to ensure sufficient working capital. Proactive preparation will be essential for sustaining business momentum under Amazon's evolving marketplace framework.