If you run a business on Amazon, you must be well aware that effective cash flow is crucial to the scalability of your business. Whether your business is growing or just starting, smooth cash flow is the only mantra to sustain the competition. Even a large enterprise making huge profits can collapse due to the non-availability of cash or liquid funds. 

What problems can occur due to lack of cash flow?

Once customers make online payments for your products on Amazon, they will only be credited to your bank account in 7-14 days as per your settlement cycle. This engages more money in your business’s working capital and causes a cash crunch. 

  • Without regular cash flow, you run the risk of facing unexpected occurrences that are inevitable on the Amazon landscape. These can be inventory policy changes, unable to negotiate stronger pricing deals from suppliers and vendors and not having resources to properly invest in your Amazon business.
  • Irregular cash flow can lead to stockouts, missed sales, decreased inventory levels, loss of organic search rank and late payment fees.
  • Additionally, wholesalers often move unsold inventory to make room for their seasonal selections during specific times of the year. You need ample capital on hand to take advantage of such deals. 

How Instant Settlements for Amazon Sellers can solve your cash flow challenges

Razorpay Instant Settlements will allow you to get access to your money instantly and avoid daily cash flow challenges. You can withdraw cash against your payouts 24×7, even during bank holidays and non-banking hours.

Receiving your sales revenue early will give you more control of your business growth. With faster access to cash, you can make the investments you need to grow your business. 

You’ll be charged a simple, fixed flat fee typically between 0.5% and 0.9% of the withdrawal amount. For example, if you are an Amazon Seller who qualifies for a custom fee of 0.7%, and your withdrawal amount is Rs. 10,000 against your Amazon balance, you will pay a fixed fee of Rs. 70. There is no interest or hidden fees or annual maintenance fees.

What are the eligibility requirements?

You are eligible for Instant Settlements if your Amazon payouts are at least Rs. 50,000 per month, with a selling history of 6 months or more. 

Please note: Currently, the feature is only available for Razorpay customers. 

Meanwhile, you can open a current account with RazorpayX and enjoy the benefits of a 2X withdrawal limit on Instant Settlements.

How to get started?

Applying for Instant Settlement for Amazon Sellers is easy and completely online.

Step 1 – Submit an application

Link your Amazon Seller Account and complete the application in less than 5 minutes.

Step 2 – Share KYC documents

Get Approved in one business day. Submit business KYC documents once approved.

Step 3 – Withdraw funds

Once activated, you can enter the amount up to the balance available in your dashboard. Within seconds, the amount will be credited to your bank account.

How much credit will you be able to access against your payout balance?

To begin with, based on your eligibility you will be able to access a maximum of ₹ 1 Lakh against your Amazon Payout balance. Nevertheless, your withdrawals and repayments will be periodically reviewed to increase your limit.

How do Instant Settlement repayments work?

You can pay back directly from the Razorpay dashboard whenever Amazon settles your payout balance.

Final thoughts

Steady positive cash flow can help you increase profits quickly by increasing your sales velocity, allowing you to invest in new inventory more frequently, enabling you to rank higher on Amazon and negotiating better pricing with your suppliers. 

So, what are you waiting for? 

Supercharge your business with Instant Settlements for Amazon Sellers today. 

 

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Ashmita Roy
Author Ashmita Roy

Ashmita Roy is a Content Marketer at Razorpay. When she’s not working, you can find her strumming her guitar or writing poetry. Dislikes writing about herself in third person, but can be convinced to do so via pizza or cheesecakes.

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