Amazon’s payment methods analysis and payment process overview
For merchants selling on the Amazon platform, understanding the payment methods and related processes is an important part of ensuring smooth flow of funds. This article will provide an in-depth analysis of the main methods of Amazon’s repayment, the calculation of the repayment rate and its influencing factors, as well as the details of the repayment process.
Amazon’s payment methods
1. Amazon Global Payment
Amazon Global Collection is a service that supports cross-border collection. Sellers can directly set up a collection account on the seller platform and transfer funds to domestic bank accounts in RMB. After the payment notification is sent, the money will be automatically transferred to the seller’s account within 1 to 3 working days. This service eliminates the need to apply for an additional third-party collection account, supports 66 countries and regions, and 45 currency conversions, and mainly meets the requirements of banks operating legally in China.
Charge structure
Amazon’s global collection adopts a tiered pricing strategy, with the lowest rate being as low as 0.4%. This fee is priced based on the seller’s tier of net sales over the past 12 months, which is the net amount of total sales minus Amazon’s operating costs.
2. Continuous payments
Lianlian Pay is a high-tech enterprise that has obtained the payment business license from the People’s Bank of China. It supports multi-currency collection, including US dollars, Japanese yen, euros and up to 11 other currencies. Its addresses are in more than 50 cross-border e-commerce companies around the world. Platforms such as Amazon, AliExpress, etc. Its main features include:
- Multi-currency support: Covering multiple currencies to meet different payment needs;
- Free deposit: The withdrawal rate is generally 0.7%, and there is no exchange loss;
- Fast arrival: RMB usually arrives within 2 hours.
Calculation of recovery rate and reasons for low remittance rate
Calculation of recovery rate
The collection rate is an important indicator for evaluating the flow of sales funds. Its calculation formula is as follows:
[ text{Sales remittance rate} = frac{text{Payment received this month}}{text{Total sales this month}} ]
When calculating the repayment rate, the seller should refer to the actual amount received. Especially when using the deposit or monthly settlement method, unpaid amounts should not be included in the calculation.
Reasons for low remittance rates
- Refunds and Returns: Buyers have the right to refunds, and sellers may face more refund requests;
- Security deposit and retention money: Amazon will charge a seller security deposit and retain part of the money to reduce risk;
- Account review and freezing: To ensure the security of the platform, Amazon will regularly review seller accounts, sometimes resulting in short-term freezes;
- Payment cycle and delay: Amazon has set different payment cycles, which may affect the seller’s return of funds.
Amazon refund process
It is important for merchants to understand Amazon’s chargeback process. The specific process includes the following three steps:
- Check customer application: Amazon will confirm the customer’s refund application through email or web announcement;
- Cashback processing: After approval, Amazon will send a refund confirmation via electronic receipt or email;
- Payment Deposit: When Amazon receives all refunds, it will deposit the corresponding amount into the seller’s account to ensure that the money arrives.
In summary, Amazon has various methods of repayment. Merchants need to actively manage the repayment rate and be familiar with the repayment process to strengthen the effective operation of funds and ensure the sustainable and healthy development of the business.