Amazon sellers face ruin as tech giant threatens to withhold payments

James Titcomb

Sat, February 14, 2026 at 8:00 PM GMT+9 3 min read

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Hundreds of thousands of Britons are sellers on Amazon - John Nguyen/PA

Amazon has been accused of hoarding third party sellers’ cash after withholding payouts for parcels delivered to shoppers.

The online shopping giant will next month change payment terms for thousands of merchants on its marketplace, leading to warnings that they face financial hardship or collapse.

The move means Amazon will hold onto tens of thousands of pounds from small businesses selling on the site, which merchants said could force them to borrow money to bridge the gap.

Amazon has millions of independent businesses that sell on the site, with payment and often delivery handled by the company.

In recent years, the company has been gradually introducing tougher payment terms for sellers, moving them on to a “DD+7” model in which they are paid seven days after an item is delivered, rather than when it is ordered.

In 2023, the company delayed the changes for some sellers after an outcry from businesses and pressure from ministers.

However, it is moving the remaining sellers who have not so far been transferred to the new terms on March 19.

Andrew Owen-Price, who has sold on Amazon for 20 years, received a notice acknowledging that his business “may experience a one-off cash flow impact”.

He said the changes amounted to “bully boy tactics” that would tie up between £20,000 and £50,000 in revenue. He said he would have to borrow money or sell the business as a result.

“If we did nothing, we would not be able to pay our suppliers at the end of the month, that would drive my business into the ground,” he said.

Llinos Medi, a Plaid Cymru MP, has written to John Boumphrey, Amazon’s UK country manager, saying the terms amount to “an enforced interest-free loan to Amazon from thousands of UK businesses without prior negotiation or meaningful recourse”.

“This approach raises questions of fairness, proportionality and market dominance,” she said.

New changes

Amazon has been putting new sellers on the terms since 2016, but existing sellers have been moved to the new system over time.

In 2023, the company offered extensions after marketplace sellers warned that the changes would force them to go bust and the Government demanded answers from Amazon.

It informed sellers of the changes last year.

Amazon has told sellers it is making the changes to keep money in reserve so that shoppers can receive refunds when they return items.

Hundreds of thousands of businesses in Britain are believed to sell on Amazon, although only a small minority are still on the old payment terms.

Amazon has said in the past that it is making the changes so that all merchants have the same policy.

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Emma Jones, the small business commissioner, said she had been in touch with the company over the changes. “My office continues to engage to ensure that small businesses moving onto the process from March are treated fairly and paid in good time,” she said.

An Amazon spokesman said: “The policy to pay businesses seven days after delivery was introduced for new sellers in 2016 and already covers 95pc of independent businesses selling on Amazon.

“A small number of remaining sellers are due to transition to the policy, which ensures sufficient funds are available to cover product returns or customer claims.”

The spokesman added: “These businesses were notified in 2023 to help them prepare, and we continue to offer support throughout this process.”

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