Amazon Account Reserve
Definition
Funds Amazon holds back from your payout to cover potential refunds, A-to-z claims and chargebacks. The money is still yours, but you cannot withdraw it yet.
Want a deeper explanation?
Reserves trip up both cash planning and bookkeeping. If you only record what hits the bank, the held amount disappears from your books, and when it releases later it looks like unexplained income.
The clean approach is to record the reserve as a receivable from Amazon in your clearing account until it is paid out. Watch for: a cash forecast built on gross Amazon sales, because reserves can grow suddenly when sales spike or account health dips.
Example
Your settlement shows $52,000 in net proceeds, but Amazon holds a $6,500 reserve, so only $45,500 reaches your bank this cycle.