Amazon Offers DD7 Policy Exclusion Extension for Eligible Sellers
Amazon Extends Deadline for Sellers to Opt-Out of Delivery Date-Based Reserve Policy
By ChannelMAX Staff Writer
July-2024#09
Amid the growing concern among sellers regarding the Delivery Date-Based Reserve (DD7) Policy, Amazon UK has announced an update for sellers that might give some respite to those who want to opt out of the policy. The DD7 policy, which allows Amazon UK to hold back funds based on the delivery date rather than the shipment confirmation date, has caused significant cash flow disruption for many European Amazon sellers. However, Amazon is now offering sellers a chance to extend the DD7 policy exclusion until September 2025.
Extending the DD7 Policy Exclusion
Amazon UK sellers who received the email from Amazon related to the extension of the DD7 policy exclusion can now follow these steps to extend the exclusion until September 2025:
1. Send an email request from your Amazon email address to eu-uk-reserve-policy-extension@amazon.co.uk
2. In the email, be sure to include your Merchant token, which is a unique identifier for your seller account.
3. Amazon will review your request and provide further instructions or assistance as needed.
Also Read: Amazon UK Unveils Enhanced FBA Enrolment Tool with Lower Fee Options
What is the DD7 Policy?
The DD7 policy, also known as the "Delivery Date Based Reserve" policy, is an Amazon policy that determines when funds from seller orders are made available for disbursement. Under this policy, Amazon holds back a reserve of funds based on the actual or estimated delivery date of the order rather than the shipment confirmation date. The reserve period is seven days after the delivery date.
Impacts of the DD7 Policy Change
The recent changes to the DD7 policy have had significant impacts on European Amazon sellers:
1. Cash Flow Disruption: The switch to a delivery date-based reserve has caused a "one-time cash flow disruption" for many sellers, as funds are now held for longer before being disbursed.
2. Eligibility for Non-Prime Deals: The DD7 policy change will allow sellers to be eligible to run non-Prime deals in the European Amazon stores, which was previously limited.
3. No Impact on Disbursement Frequency: Amazon has stated that the policy change will not affect a seller's disbursement frequency or their ability to "Disburse Now."
Also Read: Amazon Announces Crucial Updates to UK and EU Agreements and VAT Treatment
Seller Experiences and Concerns
Some European sellers have reported having tens of thousands of pounds/euros in reserves, causing significant cash flow issues to meet business expenses and pay suppliers. Sellers have also expressed frustration at the need for clear communication and support from Amazon during this transition. There are concerns that the policy change could disproportionately impact smaller sellers who may need more financial resources to weather the temporary cash flow disruption.
In conclusion, the extension of the DD7 policy exclusion until September 2025 is a welcome relief for many Amazon UK sellers who the recent changes have impacted. However, sellers need to act quickly to ensure they can take advantage of this extension. By planning ahead and exploring financial support options if required, sellers can navigate this transition period and maintain the health of their Amazon business.
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By ChannelMAX Staff Writer
July-2024#09
Amid the growing concern among sellers regarding the Delivery Date-Based Reserve (DD7) Policy, Amazon UK has announced an update for sellers that might give some respite to those who want to opt out of the policy. The DD7 policy, which allows Amazon UK to hold back funds based on the delivery date rather than the shipment confirmation date, has caused significant cash flow disruption for many European Amazon sellers. However, Amazon is now offering sellers a chance to extend the DD7 policy exclusion until September 2025.
Extending the DD7 Policy Exclusion
Amazon UK sellers who received the email from Amazon related to the extension of the DD7 policy exclusion can now follow these steps to extend the exclusion until September 2025:
1. Send an email request from your Amazon email address to eu-uk-reserve-policy-extension@amazon.co.uk
2. In the email, be sure to include your Merchant token, which is a unique identifier for your seller account.
3. Amazon will review your request and provide further instructions or assistance as needed.
Also Read: Amazon UK Unveils Enhanced FBA Enrolment Tool with Lower Fee Options
What is the DD7 Policy?
The DD7 policy, also known as the "Delivery Date Based Reserve" policy, is an Amazon policy that determines when funds from seller orders are made available for disbursement. Under this policy, Amazon holds back a reserve of funds based on the actual or estimated delivery date of the order rather than the shipment confirmation date. The reserve period is seven days after the delivery date.
Impacts of the DD7 Policy Change
The recent changes to the DD7 policy have had significant impacts on European Amazon sellers:
1. Cash Flow Disruption: The switch to a delivery date-based reserve has caused a "one-time cash flow disruption" for many sellers, as funds are now held for longer before being disbursed.
2. Eligibility for Non-Prime Deals: The DD7 policy change will allow sellers to be eligible to run non-Prime deals in the European Amazon stores, which was previously limited.
3. No Impact on Disbursement Frequency: Amazon has stated that the policy change will not affect a seller's disbursement frequency or their ability to "Disburse Now."
Also Read: Amazon Announces Crucial Updates to UK and EU Agreements and VAT Treatment
Seller Experiences and Concerns
Some European sellers have reported having tens of thousands of pounds/euros in reserves, causing significant cash flow issues to meet business expenses and pay suppliers. Sellers have also expressed frustration at the need for clear communication and support from Amazon during this transition. There are concerns that the policy change could disproportionately impact smaller sellers who may need more financial resources to weather the temporary cash flow disruption.
In conclusion, the extension of the DD7 policy exclusion until September 2025 is a welcome relief for many Amazon UK sellers who the recent changes have impacted. However, sellers need to act quickly to ensure they can take advantage of this extension. By planning ahead and exploring financial support options if required, sellers can navigate this transition period and maintain the health of their Amazon business.
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
Disclaimer:
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.