Amazon India holds a reserve amount to cover possible risk before paying you out. Common reasons include pending A-to-z claims or chargebacks, high returns, a new or recently changed account, an account under review, unresolved verification or compliance details, and negative balances. Check the exact reason in Seller Central notifications and your payment statement, then fix the cause and request a review.
What a reserve amount actually means
A reserve is money Amazon keeps back from your payable balance instead of disbursing it in the current settlement cycle. It is not a fee or a penalty by itself. It is a hold against a risk Amazon sees, such as likely refunds, customer claims or an open account review.
The trigger, size and release timing depend on Amazon's seller agreement and its internal risk checks. Read the latest Business Solutions Agreement and the payments help pages in Seller Central for exact conditions, because these can change.
Common reasons Amazon holds a reserve
Amazon does not always spell out the reason in the statement line. These are the usual causes to check, roughly in order of how often sellers run into them:
- Open customer claims: A-to-z Guarantee claims or payment chargebacks that are not yet resolved.
- Returns and refunds exposure: a spike in returns, especially in categories with high return behaviour.
- New or changed account: a recently launched account, or recent changes to bank details or business information.
- Account review: performance issues, policy warnings or a listing or authenticity investigation.
- Pending verification: incomplete KYC, GST, tax or bank documents.
- Negative balance: refunds, fees or ad charges exceeding sales in a cycle, with the shortfall adjusted against later payouts.
- Sudden sales jump: a sharp rise in volume that does not match your history.
Where to see the reserve in Seller Central
Go to Payments, then the Statement View, and open the settlement period concerned. Also download the Date Range Report from the Reports section under Payments. Look for lines that mention a reserve, or a balance carried forward from a previous period. Exact labels can differ, so check the column definitions in the report.
Then check Account Health, Performance Notifications and your registered email for any notice linked to the same dates. A reserve with no matching notice often points to an automated risk check, which you can raise through Seller Support.
How to get a reserve reviewed or released
- Note the reserve amount, settlement period and any notification reference.
- Close what you can control: respond to open claims, update documents, and fix performance warnings.
- Open a case with Seller Support, quoting the statement period and amount, and ask for the specific reason and release conditions.
- Attach evidence such as proof of delivery, invoices, return receipts and verification documents.
- Follow up with the case ID, and record the dates of every response.
Avoid opening repeated duplicate cases. They can scatter the history and slow down a decision.
Track held money separately, including on Flipkart
A reserve is receivable cash that has not been received. If your books show only bank credits, the held amount disappears from view and period-end reconciliation will not tie out. Keep a running ledger of each hold, its reason, the case ID and the expected release.
| Check | Compare |
|---|---|
| Opening and closing reserve | Statement balance against your ledger |
| Claims and chargebacks | Open cases against amounts deducted |
| Fees and adjustments | Charges against your agreed terms and rate card |
| Release | Bank credit against the released amount |
The same discipline applies to Flipkart: use its payment and settlement reports to find held or adjusted amounts, and confirm the rules in your seller agreement. MarketplaceMetrics by Fundle reconciles marketplace sales and settlements and tracks returns and recovery cases. Amazon and Flipkart coverage can be discussed with the team.
Worked example
Illustrative example only. These figures are not real rates or results.
| Line | Amount (₹, illustrative) |
|---|---|
| Delivered sales in the cycle | 1,50,000 |
| Less: fees and deductions | 32,000 |
| Less: refunds | 8,000 |
| Less: reserve held | 25,000 |
| Net disbursed | 85,000 |
Suppose the reserve was linked to a claim. If the claim is later decided against you for ₹10,000, only ₹15,000 of the reserve comes back. Without a ledger entry for the held ₹25,000, the ₹10,000 loss and the ₹15,000 release would both be hard to explain at month end.
Questions and answers
Is an Amazon reserve the same as a fee?
No. A reserve is a temporary hold on money that is still yours, while a fee is a charge that reduces your earnings. Check the statement carefully, because the reserve may be partly or fully released, or converted into deductions if a claim goes against you.
How long does Amazon keep a reserve?
There is no single period you can rely on. Release depends on the reason, such as claim closure or review completion, and on Amazon's current policy. Ask Seller Support for the specific release condition and confirm the latest terms in your seller agreement.
Can I ask Amazon why my money is held?
Yes. Raise a case with Seller Support quoting the settlement period and reserve amount, and ask for the specific reason and what is needed for release. Also check Account Health, performance notifications and your registered email for related notices.
Should I book reserve money as income?
Treat it as a receivable that has been earned but not yet received, subject to the outcome of any claim. How to account for it, including any GST or TCS impact, should be confirmed with your chartered accountant or tax adviser.