Many sellers only truly understand what it means to work with marketplaces when their cash flow starts to tighten. Sales grow on Amazon, AliExpress, or Temu, but the money available in their bank account doesn’t grow at the same pace.

The reason isn’t an error or a hidden penalty. It’s simply how the system works. Marketplaces do not immediately release the funds from each sale because they operate under a risk management model that prioritizes buyer protection, dispute resolution, and regulatory compliance before transferring money to the seller.

Understanding this logic is essential for any business selling on digital platforms across Europe.

Why marketplaces hold your money: the financial logic behind the model

In traditional e-commerce, when you process a card payment through your own online store, funds are typically settled within a few days according to your bank or payment processor’s rules. However, when you sell on a marketplace such as Amazon or eBay, the flow is different: the customer pays the platform, the platform manages the order, and only then releases the balance to the seller under its internal payment terms.

The primary reason is consumer protection. In the European Union, online buyers have the right to withdraw from a purchase within a legally defined period. For that right to be effective, the marketplace must ensure sufficient funds are available to quickly refund the customer if a return is requested. Releasing the money to the seller immediately would remove that safeguard.

On top of this comes dispute and chargeback management. When a customer challenges a payment with their bank or opens a dispute within the platform, the marketplace must have funds available to cover the transaction while the case is investigated. That is why platforms like Amazon state in their official documentation that they apply scheduled payment cycles and may maintain account reserves to cover refunds or pending claims.

The same principle applies across other platforms. On eBay, payments may be held if there is an open dispute or if the seller’s account is new and lacks sufficient history. On AliExpress or Temu, where integrated payment services and buyer protection systems are involved, the payment flow also includes verification and validation steps before funds become fully available to the seller.

In every case, the concept is the same: the marketplace acts as a financial intermediary with a duty to mitigate risk.

The hidden impact: how payment holds affect your cash cycle

From an accounting standpoint, the sale has been made. From a financial standpoint, not necessarily. The funds may appear in your dashboard as a pending balance, but they are not yet transferable cash.

This timing gap directly affects your company’s cash conversion cycle. You pay for inventory, advertising, logistics, and taxes before you have access to the actual revenue. If you sell across multiple marketplaces — for example, Amazon and AliExpress simultaneously — you may have funds held on each platform under different payment schedules.

The higher your sales volume, the greater the amount of capital temporarily locked within these settlement cycles. Paradoxically, growth can increase liquidity pressure if this timing gap is not properly planned.

For some sellers, this may appear to be a temporary issue. In reality, it is a structural feature of the marketplace model. Payment holds are not exceptional; they are built into the operational design and have a real impact on your business.

Delivery-based holds and account reserves

Some platforms link fund availability to the delivery date of the order. In other words, even if the customer has paid, the funds are not considered “releasable” until the product has been delivered and an additional safety period has passed. This helps reduce fraud risk and immediate returns.

Additionally, there may be what is commonly referred to as an account reserve. This is an amount the platform temporarily holds to cover potential future claims. On Amazon, for example, this concept is formally documented as part of its financial protection system. Other platforms apply equivalent mechanisms under different contractual terms.

The practical effect is that part of your revenue may remain held even when there is no specific return in progress, simply as a precautionary measure.

Is this practice arbitrary?

In short, no. It aligns with consumer protection regulations and the rules of international payment networks. Marketplaces operate across multiple jurisdictions and must comply with requirements related to buyer protection, fraud prevention, and chargeback management.

Within the European framework, consumer law ensures that buyers can exercise their right of return without barriers. To make that possible at scale, marketplaces must secure sufficient liquidity before releasing funds to sellers.

The model is not designed to harm sellers; it is designed to preserve trust in the system and ensure transactional security. However, the financial impact on sellers is very real.

The real seller pain point: selling more without having liquidity

The issue isn’t that the money doesn’t exist. The issue is when you can actually use it.

If you sell today on Amazon, AliExpress, or Temu but the funds are not released until weeks later, your company must finance that gap somehow. That temporary shortfall can be covered through internal capital, debt, or external receivables financing solutions.

When this timing gap is not properly modeled into your financial planning, growth can become a source of cash strain rather than a competitive advantage.

Frequently Asked Questions (FAQ)

Why doesn’t Amazon pay immediately after a sale?
Because it applies scheduled payment cycles and may retain funds to cover refunds, claims, or chargebacks before transferring the balance to the seller.

Do AliExpress and Temu also hold funds?
Yes. As payment intermediaries operating under buyer protection systems, they manage funds until delivery conditions are met and disputes are cleared.

Can eBay hold payments?
Yes, especially if there are open disputes, claims, or if the seller account is new and lacks sufficient transaction history.

Are payment holds legal in Spain?
Yes. They are aligned with European consumer protection regulations and international payment network rules.

How does this affect cash flow?
It extends the cash conversion cycle, since accounting revenue does not coincide with the moment funds become available in your bank account.

Conclusion

Payment holds on marketplaces such as Amazon, AliExpress, or Temu are not accidental nor hidden penalties. They are a direct consequence of the financial framework that underpins modern e-commerce: buyer protection, risk management, and regulatory compliance.

For sellers, this means that making a sale does not equal getting paid immediately. Understanding that distinction is essential for managing liquidity effectively, planning growth, and avoiding unnecessary cash flow pressure.

If you want to learn how to get paid daily and eliminate cash flow tension so you can scale faster, contact us and we’ll explain how daily payouts work in detail.