What is account level reserve?

Account Level Reserves are a normal part of selling on Amazon and are designed to ensure that you have enough funds to fulfill various financial obligations, such as refunds, claims, or chargebacks. These reserves are typically held in your seller account until certain conditions are met. Here are common reasons for having funds in an Account Level Reserve:

1. **Delivery-Date Reserves:** Amazon may reserve your sales proceeds until a specific number of days after the delivery date of an order to ensure you have enough funds to cover potential obligations. This is done to manage the risk associated with order fulfillment.

2. **A-to-z Guarantee Claims:** When an A-to-z Guarantee claim is filed by a buyer, the claim amount is reserved until the claim is resolved. The reserve is released once the claims have been processed, which can take up to 14 days or longer.

3. **Chargebacks:** If your account has any chargebacks from transactions in the last 90 days, funds might be reserved. The reserve is released once the chargebacks have been processed.

4. **Seller Performance:** If your seller performance metrics fall below Amazon's benchmarks, funds might be reserved. Lower metrics can indicate a higher likelihood of claims, chargebacks, and returns.

5. **Account Review:** Funds might be reserved if Amazon notices an unexpected change in your sales or account activity. New sellers with estimated delivery times longer than their settlement period may also have funds reserved.

6. **Income Tax Withholding:** Depending on your tax registration status and local regulations, Amazon may reserve funds to withhold and pay income tax based on your sales.

It's important to note that multiple reasons for Account Level Reserves can apply simultaneously. For example, if you have a chargeback for £40 and an open A-to-z Guarantee claim for £20, the total reserve from those two orders would be £60.

To potentially release funds faster:

- Respond promptly to A-to-z Guarantee claim notifications.

- Cooperate in the resolution of chargebacks and other claims.

- Focus on maintaining good seller performance metrics to reduce the likelihood of reserves.

Understanding and managing these reserves is essential for maintaining a healthy seller account on Amazon.