Amazon’s Delivery Date Deferral DD+7 DD7 Program

Many of you have noticed Amazon’s recently implemented Delivery Date Deferral (DD7) Program, which may be materially impacting your financials.

About DD7

Launched in October 2024, DD7 allows Amazon to hold sales revenue until the delivery date plus seven days or more. Deferred transactions do not appear in Amazon’s financial reports or third-party integrations until payment is released.

Key Points

• Amazon may be understating revenue by up to 25% for clients with a “Deferred Transactions” section on their Payments Dashboard.

• Amazon now excludes these transactions from monthly financial summaries and API data accessed by tools like A2X.

• Deferred transactions are excluded from reports, making it appear as though sales didn’t occur. Under proper accrual accounting, this revenue should be recognized once fulfillment occurs.

Challenges

Amazon’s reporting limitations include:

• No ability to specify dates on Deferred Transaction reports.

• Export limits of 600 lines per report for transaction data.

• Exclusion of deferred transactions from standard reports and APIs.

What You Can Do

• Capture Deferred Transaction Reports: Run a deferred transaction report as late as possible on December 31st or each month end to adjust your Financial Summary.

• Identify Deferred Sales: For high-impact cases, analyze daily transaction data to identify deferred sales around the reporting period boundary.

• Monitor Changes: Amazon promises future reporting improvements and has offered to postpone DD7’s impact until September 25, 2025.

This is clearly a significant change having a major impact on cash flow. Please do recognize that there are reports to isolate that overall impact.