In the daily operation of Amazon sellers, the collection rate is a crucial indicator, which is directly related to the seller’s capital flow and economic benefits. Understanding the calculation formula of Amazon’s collection rate and the possible reasons for low remittance rate is of great significance for sellers to optimize their business strategies and improve collection efficiency.
1. Amazon Collection Rate Calculation Formula
The key to calculating Amazon’s collection rate is to understand the concept of sales remittance rate. Specifically, the sales remittance rate can be calculated by the following formula:
Sales remittance rate = This month’s collection of goods/This month’s total sales
Among them, this month’s collection of goods refers to the part of the payment for goods sold this month that has been recovered, excluding the payment for past sales this month, especially for sellers who adopt the monthly settlement method.
The collection rate should be based on the actual amount received
When calculating the collection rate, sellers should base it on the actual amount received. This means that the amount that has not yet been received by depositing orders, monthly settlement, etc. cannot be included in the calculation of the collection rate. This is very important because it can more truly reflect the actual payment received by the seller.
2. Reasons for Amazon’s low remittance rate
1. Refunds and returns
On the Amazon platform, buyers have the right to apply for refunds or returns at any time, and Amazon usually tends to protect the rights of buyers and provide more refund protection. Therefore, sellers may face more refund requests, which will have a negative impact on the collection rate.
2. Guarantee and retention
In order to reduce risks, Amazon will collect sellers’ guarantee and retain part of the funds. These funds may be used to handle potential refunds or dispute cases, resulting in sellers not being able to get all their income immediately.
3. Audit and account freezing
In order to ensure the security and compliance of the platform, Amazon will audit sellers’ accounts and even temporarily freeze accounts in some cases. This may result in sellers not being able to get their money back in time.
4. Payment cycle and delay
Amazon sets different payment cycles, such as paying every two weeks or once a month. This delay in the payment cycle may cause the seller to be unable to receive repayment for a period of time, affecting the flexible use of funds.
3. Strategies for optimizing the collection rate
Optimize after-sales service: Improve customer satisfaction and reduce the occurrence of refunds and returns.
Reasonably estimate inventory: Avoid excessive deposits and retention funds to ensure that funds can be recovered in a timely manner.
Handle disputes in a timely manner: Actively participate in dispute resolution to reduce the risk of account freezing.
Flexibly use advertising: Increase product exposure, increase sales, and improve collection rate through advertising.
Understanding the calculation of Amazon’s collection rate and the reasons for low remittance rates is crucial for sellers to better manage funds and optimize sales strategies. Through reasonable business methods and good after-sales service, sellers can increase the collection rate on the Amazon platform, ensure the effective operation of funds, and lay the foundation for the healthy development of the business.