Tips for Amazon Seller Central Disbursement or Settlement Reports
Amazon's Seller Central is the online interface used by merchants to manage and view their orders. One of the most critical features offered by this platform is the Disbursement Report. This report is your window into how and when you get paid for your Amazon sales. However, understanding the details of these disbursement reports can sometimes feel like a daunting task. This blog post aims to demystify these reports and guide you on how to read and interpret them effectively.
Understanding Amazon Seller Central Disbursement Reports
In simple terms, a disbursement report reflects the total sales a seller has made during a certain period, the associated fees, and the final amount that Amazon deposits into the seller's bank account. These reports are typically generated every 14 days, but the schedule can vary based on various factors such as the seller's account health, sales volume, and the fulfillment method.
Here's a step-by-step guide to understanding your Amazon Seller Central Disbursement Reports:
1. Total Sales: This is the sum of all the orders that have been shipped in the disbursement period. It is important to note that the Total Sales figure includes taxes and shipping charges collected by Amazon on your behalf.
2. Amazon Fees: This section outlines the different types of fees deducted by Amazon. This includes referral fees (the percentage Amazon takes from each sale), subscription fees (for professional sellers), and FBA fees (if you're using Fulfillment by Amazon).
Amazon Fees: This is the sum of the various fees that Amazon charges for its services. It's important to understand the different types of fees to better comprehend your disbursement reports.
Referral Fees: Amazon charges a referral fee for each item sold, which is a percentage of the total sales price. The rate varies based on the category of the product, but it generally ranges from 6% to 45%.
FBA Fees: If you're using Fulfillment by Amazon (FBA), Amazon charges a fee to store your products in their warehouses, pack, and ship them. This fee is based on the size and weight of the item. There might be additional fees for long-term storage or for removing or disposing of your inventory.
Closing Fees: For media products (books, music, video, DVD, software, and video games), Amazon charges a flat fee per item sold.
High-Volume Listing Fee: If you have a high volume of SKUs and do not make many sales, Amazon may charge a monthly high-volume listing fee.
Subscription Fees: Amazon charges a monthly subscription fee for Professional Sellers, whereas Individual Sellers are charged a fee per item sold.
Other Fees: Amazon may also charge additional fees for services like advertising, use of premium account services, or rental book service fees.
3. Other Transactions: This section includes any other financial transactions associated with your account. It could be charges for services like advertising or subscription to tools such as Seller Central analytics, as well as refunds given to customers.
4. Balance Carried Forward: If there are any amounts that Amazon was unable to disburse in the previous payment cycle, they are included in this section.
5. Total to Be Paid: This is the final amount that will be transferred to your bank account. It is calculated as 'Total Sales' minus 'Amazon Fees' minus 'Other Transactions' plus 'Balance Carried Forward'.
Understanding and frequently checking your disbursement reports is crucial. It not only helps you keep track of your Amazon revenues and expenses but also provides you with valuable insights into your business operations, facilitating better decision-making for business growth.
Remember, the key to being successful on Amazon is all about staying informed, being proactive, and understanding your financials. So, keep a close eye on your Amazon Seller Central Disbursement Reports, and you'll be well on your way to becoming a successful Amazon Seller. For more detail on fees, please see this post. We hope this blog post was beneficial!
Thank you,
Commerce Canal Team
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