The plight of a Bracknell-based business owner who says online retail giant Amazon is withholding at least £250,000 of his money has been picked up by worried MP James Sunderland.

The Bracknell MP has taken the local case to the Treasury reiterating his concerns for the local Bracknell business which employs more than a dozen people locally.

Daniel Moore – owner of online ink cartridge supplier Ink Jungle – says an Amazon policy will mean he is always hundreds of thousands of pounds out of pocket.

Under the policy, Amazon will only transfer payments to online sellers seven days after the delivery date following a sale. The shopping website says this is to make sure it has the money to process any refunds or returns.

But Mr Moore says this could mean Amazon will constantly hold at least £250,000 of his cash a week, and that when payments are released they will take another 3-5 days to process.

The business owner explained that the strict policy makes it harder for him to pay suppliers, bills, taxes and employees’ wages, he said.

Mr Moore said: “Amazon now owe me over £200,000 and it is increasing by £40,000 daily, so I expect they will hold £250,000 by the end of today.

“We’re still 14 days from the disbursement date – so it will be half a million by then. And then they will only release half of that.”

He added: “I employ 20 staff – I’m responsible for making sure that this business survives. The delay stops us making VAT contributions on time, it stops us from replenishing stock. That has a knock-on effect across the whole supply chain.

“Multiply that across the UK and Europe. There are huge sums of money that Amazon is withholding from sellers.”

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Mr Sunderland confirmed that he had been in “close contact” with treasury ministers after Mr Moore raised the issue with him.

He said: “In the case of  Mr Moore who has been a long-term partner with Amazon, employing 20 people in Bracknell, I am concerned at how this policy is being implemented for businesses like Mr Moore’s.

“A seller could be waiting for 24 working days for payment. But if the seller need the money now then Amazon may consider lending their own money at a rate of interest.

“This practice not only impacts the seller but also their supply chain and yes HMRC if a seller is not receiving their cash so they can pay their tax bill.”

A spokesperson from Amazon said the policy had been in place since 2016 – and the move was only to transfer remaining sellers onto that scheme. They added it was to ensure that sellers can pay for refunds and returns.

They said: “This change does not impact the vast majority of selling partners. We recognise it may lead to a one-time cash flow disruption which is why we notified affected selling partners three months in advance to help them prepare for this change.”