What unique challenges are people in your industry facing right now?
Everyone makes mistakes, including Amazon. In the current landscape, Amazon sellers and vendors often encounter overcharges and losses due to various reasons, impacting their bottom-line profits and operational efficiency. Amazon’s occasional mishandling of inventory, such as losing or damaging items without compensation, only exacerbates these challenges.How do these problems impact them, if they don’t find a solution?
It mainly affects the net profit and margin of the business. We typically recover between 1-3% of annual sales for Seller Central accounts and about 5% of yearly sales for Vendor Central. Just to give you an idea, a Vendor Central account generating $60 million in yearly revenue could potentially miss out on $3,000,000 in payment discrepancies. FBA sellers selling on Seller Central can sometimes have their shipments lost in amazon fulfillment centers. These shipments can at times account for hundreds of thousands of dollars. Many times sellers have trouble getting those lost shipments reimbursed back when amazon is at fault for losing or damaging items in the warehouse (and the seller doesn’t even know about it!).
How effective are the current methods for solving these issues? What challenges remain in this area?
We boast a high success rate of over 90% in recovering lost funds, primarily due to our systematic approach and deep understanding of Amazon’s reports structures. However, the main challenge lies in comprehending Amazon’s complex calculations and initiating the reimbursement process effectively. Our expertise lies in navigating these intricacies to ensure our clients receive their rightful reimbursements.- For Vendor accounts we dispute co-op fee rates, shortage discrepancies, invoicing errors, and more.
- For FBA sellers, we find lost shipments, lost and damaged units value recovery, and overcharged fees among many other things
What’s a better way in your opinion to fix these issues, and how do you help implement it?
There are two ways of getting reimbursed:- Go after case by case and hope that Amazon agrees to reimburse the account
- Take a deeper dive and understand why Amazon overcharged the account, and what it is about your account that allowed that discrepancy to happen in the first place.
Here is a list of the various discrepancies, errors, and issues addressed by Refunds Manager:
- Reconciliation of all transactions per item, including comparing the amount received, orders, returns, reimbursements, and removals against actual stock records.
- Identification of items destroyed by Amazon without user request or permission.
- Detection of orders returned after 30 days without the 20% restocking fee being applied by Amazon.
- Resolution of cases where customers received a refund exceeding their original payment, resulting in the seller being charged.
- Handling situations where a customer received a refund, but the seller has not been credited back within the 45-day timeframe.
- Management of inbound items damaged by shippers or not received within 30 days.
- Rectification of orders subjected to overcharged weight or dimensional fees.
- Addressing cases of overcharged commission fees on orders.
- Tracking items lost or damaged in Amazon’s warehouse, ensuring proper reimbursement.
- Management of scenarios where replacements were sent to customers, but the originals were not returned within 45 days.
- Investigation into instances where Amazon claims to have reimbursed a return but has not completed the reimbursement.
- Verification of Amazon’s claim to have placed an item back into the user’s inventory when it has not been replaced.
- Resolution of discrepancies where stock was deducted after shipment closure.
- Handling cases where the wrong item was returned and scanned into the user’s inventory.
- Ensuring refunds for chargebacks are processed correctly.
- Addressing returns damaged by carriers or Amazon.
- Handling situations where inventory was not received from a removal order.
- Rectifying instances where Amazon reimbursed an incorrect quantity for returned items.
- Ensuring Amazon reimburses the correct total amount based on the original order.
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