When it comes to running a successful Amazon business, one of the crucial aspects to consider is how you'll receive your hard-earned deposits from Amazon Seller Central.
In this guide, we'll explore the best ways to handle Amazon deposits, taking into account three key considerations that can significantly impact your financial operations.
1. Traditional Bank vs. PSP:
For U.S. Citizens Operating in the USA:
If you're a U.S. citizen operating within the United States, the choice between a traditional bank and a Payment Service Provider (PSP) is a critical decision. Many U.S.-based sellers opt for a U.S. bank account, often the same bank they use for personal transactions. However, it's worth exploring other major banks for potential sign-up or welcome bonuses for new business banking customers.
BONUS: Consider the following factors when choosing a bank for your Amazon Business...
ACH/Wire Fees: Since you'll likely use ACH/Wires for supplier payments, look for banks offering free ACH transfers and affordable wire fees.
Account Maintenance Fees: Check for any maintenance fees, especially if you won't maintain a high balance.
Interest Rates: Explore the interest rates offered by the bank.
Online Banking Platform: Ensure the bank provides an easy-to-use online banking platform.
For Non-U.S. Residents:
If you reside outside the U.S., opening a traditional bank account in the U.S. may pose challenges. However, opting for an approved Amazon PSP allows you to receive U.S. deposit from Amazon Seller Central as if you had a US bank account but instead using a PSP which is essentially a virtual bank.
2. Qualifying for Express Payout On Amazon
Amazon typically disburses balances every two weeks, and the standard ACH delivery to your bank can take up to five days. Express Payout offers eligible U.S. store sellers the advantage of receiving their payouts within 24 hours. To qualify for Express Payout, your bank must be on Amazon's approved list of banks for express payouts. Make sure to check the list to ensure your bank qualifies for this expedited payout option.
3. Currency Conversion Concerns For Amazon Sellers
For sellers dealing with multiple currencies, especially those residing in one country and selling in another, currency conversion becomes a crucial consideration. If you're concerned about Amazon's conversion rates, consider using a PSP to receive funds from Amazon in your sales currency and then convert it to your local currency at your convenience. This approach allows you to have more control over the timing and rates of currency conversions, aligning with your business strategy.
Conclusion: Making Informed Decisions for Financial Efficiency.
As you grow, choosing the right method to receive your Amazon deposits can significantly impact the efficiency of your financial operations. Whether you opt for a traditional bank or a PSP, consider the unique needs of your business, your location, and your preferences. By navigating these considerations, you can streamline your financial processes and focus more on growing your Amazon business.