Why does Amazon disbursement take so long?

This is the question I was asked last week. “Why does Amazon disbursement take 14 days?” It’s a fair question, and not one I’d thought much about. I don’t really have an answer.

The seller in question, which whom I shared several convivial pints, sells on eBay too and noted that PayPal funds are available immediately and can be withdrawn to your bank account pretty much instantly. We both agreed that it was one of few occasions where eBay/PayPal are ahead of Amazon.

Obviously, any delay in getting your hands on the money is a bad thing. Cashflow is important and waiting 14 days isn’t ideal.

Both PayPal and Amazon, obviously, will keep their hands on disputed funds. And that’s understandable.

But my seller chum noted the ultimate absurdity of the delay in Amazon’s disbursement. On his Amazon seller dashboard, the company based in Seattle is offering him finance. If you’re an Amazon seller, the loans are competitive and in your face. Read more about Amazon Lending.

From all the reports I’ve heard from people who have taken finance from Amazon: it’s quick and easy to apply and funds arrive in your bank account same day. Easy access to a bit of finance can be useful for marketplace sellers and Amazon do it well at competitive rates.

But really, isn’t ironic that an Amazon seller can grab cash from Amazon on a loan same day but has to wait 14 for money earned to come their way?

Swifter settlement of Amazon accounts would be welcome. And we know they can do it. So why does it take so long?