Amazon will implement DD+7 policy and sellers’ payment recovery time will be extended
Recently, Amazon announced a significant change to its seller settlement policy. Starting from March 5, 2026, Amazon will implement the DD+7 payout rule globally, with the German site following on March 12. This policy means that funds will be released seven days after delivery confirmation.
Understanding the DD+7 Policy
For orders with tracking information, the seven-day period begins from the confirmation of delivery. For orders without tracking, it starts from the estimated delivery date. Once an order is shipped, Amazon temporarily holds the buyer's payment until the seven-day period ends, after which the funds are transferred to the seller's available balance.
In practice, considering the time for preparation, packaging, and typically one to two days of shipping, the actual payment cycle often extends to eight or nine days. This adjustment aims to standardize the holding period that most sellers worldwide have already adopted.
Impact on Sellers
Amazon states that this change is intended to create a safer buffer period between buyer payment and seller receipt, improving refund and after-sales issue handling. However, for sellers, this means additional time from shipment to actual payment, with the impact varying based on delivery method, distance, and tracking quality.
International orders, longer delivery cycles, or delays may experience more pronounced effects. Notably, the DD+7 rule also applies to orders using Fulfillment by Amazon (FBA), where Amazon handles shipping and logistics.
Financial Implications for Small Businesses
Many small and medium-sized sellers are concerned about the sustained impact on cash flow. Amazon describes this as a “one-time cash flow impact,” but some brands estimate they will need an additional £20,000 to £50,000 in working capital after the policy is implemented.
- In March, when the policy takes effect, approximately £20,000 may be held.
- By December, during the peak sales season, this figure could rise to £50,000.
Restricted cash flow can affect restocking, inventory management, supplier procurement, and hiring plans. If tens of thousands of small businesses face similar situations, the scale of funds delayed by 7 to 9 days could reach hundreds of millions.
Strategies for Risk Mitigation
Amazon advises sellers to assess their financial status in advance and take measures to reduce risks. These include:
- Using complete logistics tracking to ensure accurate delivery time records.
- Evaluating whether to use FBA for certain products.
- Adjusting payment terms with suppliers.
- Optimizing safety stock levels.
- Enhancing monitoring of logistics performance.
Changes in Digital Service Fees
Amazon also announced adjustments to the application of the UK digital service fee. Previously, this tax was listed as a separate charge on invoices at a 2% rate. From March 20, 2026, the fee will align with the digital service tax rate of the country where the sale occurs, set at 3%.
For instance, if a seller is registered in the UK and sells on French, Italian, or Spanish sites, their sales commission and FBA fees will incur a 3% digital service fee. Similarly, sellers registered in Italy or Spain will face a 3% rate when selling on UK and French sites.
Adapting to New Fee Structures
The UK digital service tax primarily targets large internet companies like search engines, social media platforms, and online marketplaces. Amazon states this adjustment aims to align fee structures more closely with actual costs.
With multiple fee and settlement policy changes, sellers need to reassess their cash flow arrangements and operational strategies in the spring of 2026.
Final Thoughts
Amazon's new DD+7 policy and changes in digital service fees represent significant shifts for sellers, particularly small and medium-sized enterprises. While these changes aim to improve transaction security and align fee structures with costs, they also pose challenges in cash flow management and operational planning.
Sellers are encouraged to proactively evaluate their financial strategies and adapt to these changes to ensure continued success in the evolving e-commerce landscape.
