How Faster Amazon Seller Payments Drive Holiday Growth

The holiday season is a boom time for online retailers. Consumers are spending more money than usual in a wide array of categories, which means there’s a lot of potential for growth for sellers. However, many of them struggle to keep up with the increased demand and miss out on opportunities because of delays in getting paid.

Imagine selling out of a hit product at the beginning of December. You’ll need to restock it if you want to take advantage of the opportunity in front of you. But, you don’t have any money from your sales—Amazon is holding it for at least 14 days, maybe even 28. By that time, the holidays will have passed along with the opportunity–everyone who wanted to buy the product as a gift probably found it somewhere else or chose another item instead.

This is where faster Amazon seller payments come in handy. By shortening the cash cycle, you can improve your cash flow and position yourself for growth through the end of the year and beyond.

What is a Cash Cycle and Why is it Important During the Holidays?

Your cash cycle is the time it takes for your business to convert sales into cash. In a perfect world, every sale would be immediately followed by payment. However, in reality, there is often a lag between when a sale is made and when payment is received, especially online and particularly on Amazon.

This creates problems for businesses, especially during times of high demand like the holiday season. It comes down to Amazon’s cash cycle, which relies on collecting payments instantly, days before the products even arrive to the customer.

On Amazon, the average time for payment, including time spent in the account level reserve, is 28 days. For sales made outside of Amazon, many sellers and retailers can shorten the cash cycle and get paid immediately. There are many obvious benefits to this, and many Amazon sellers seek out ways to expedite their payment.

Top Three Advantages to Faster Amazon Seller Payments

Here are three of the many advantages of getting paid out faster for your Amazon sales.

You can take advantage of seasonal trends. By having the ability to restock quickly, you can make sure that you have the hottest items in stock at all times. This allows you to capitalize on any seasonal trends and ensure that you're never missing out on a potential sale.
You can reinvest in your business quickly. Whether it's hiring new staff, expanding your product line, or investing in marketing, extra capital gives you the opportunity to take your business to the next level.
You get peace of mind during the holidays. Running a business is stressful enough without having to worry about when you'll get paid for your sales. When you know that you're getting paid faster, you can focus on other areas of your business (and life) and have peace of mind knowing that your finances are in order.

Solid cash flow is critical for any business, but it is especially important during times of high growth. When demand is high, you need to be able to invest in inventory and new products to meet your customers' needs.

However, if you're waiting on payments from previous sales, you may not have the money necessary to do this. This can limit growth and hamper your ability to take advantage of opportunities during periods of high demand.

With a service like Payability, you get paid for your Amazon sales daily, even after big sales days and holidays. You can unlock all the money in your account level reserve and put it to work for your business much faster.

It is great and refreshing to see the light at the end of the tunnel finally, and it's not an oncoming train. When you are making sales over $66K a month from your e-comm store and Amazon only releases your money every 14 days, you need the cash flow for inventory. Payability has given me the ability to meet my inventory demands."

-James N., Amazon seller and Payability customer

Faster Amazon Seller Payments Drive More Growth During the Holidays

Faster payments during the holiday season can give Amazon sellers a much-needed boost by shortening your cash cycle and improving your cash flow. This ultimately gives you the ability to capitalize on increased demand and grow your business through year-end and beyond. If you're an Amazon seller, consider taking advantage of this opportunity to drive faster growth for your business!

At Payability, we offer the most streamlined option out there when it comes to faster Amazon seller payments. We’ve put over $6 billion in sellers’ wallets since our founding in 2015. Plus, we’ve got a ton of five-star reviews from sellers like you who have used Payability to grow. If you’re interested in faster payments and you regularly sell over $10k per month on Amazon, you can easily apply in minutes.