If you are experienced with Amazon Vendor Central, terms like deductions and chargebacks will not be new to you.
Chargebacks and deductions represent a significant amount of time and energy of the vendor-retailer relationship. They are the means through which retailers enforce compliance with their guidelines and protect their customers' experience. However, for suppliers, Amazon Deductions can heavily impact your bottom line and operational efficiency if not managed effectively.
Within this article, we shall delve into what are amazon vendor central chargebacks, shedding light on the diverse deduction types and the factors influencing their emergence. In addition, we present professional insights to proactively minimize their frequency and manage them with utmost efficiency.
What is a DEDUCTION?
Deductions refer to the money that Amazon deducts from your payment for violating Vendor Regulations. They can range from minor amounts for small infractions to a significant 50-60% of the product cost for major violations.
In recent times, there have been allegations that Amazon is issuing numerous deductions to increase its profit margins. As a vendor, it's essential to know how to handle these deductions effectively. To do so, you need to be aware of the various types of deductions that Amazon imposes on vendors.
Types Of Chargebacks & Deductions
2) Shortage Deductions
As the name suggests, these deductions are issued when the quantity of products received is less than stated in the invoice. Reasons for shortages can include:
Best Practices to Avoid Amazon Deductions.
Proactive Shipment Tracking: By tracking each step of the shipment you as a vendor can make sure if everything is happening in a timely manner and if at any point there are delays you can update it on Amazon Vendor Central to avoid any deduction.
Stay Up to Date With Vendor Agreement: Amazon frequently changes Vendor Regulations, these changes are usually minor, but by not complying with them you can get a large number of deductions. So you should make sure that you stay updated with these changes and make sure your staff adheres to them.
Streamline and Standardized Process: It’s a hassle to follow every step manually so there is software out there to streamline this for you. They are super efficient and cost-effective. Further in this article I will share more details about it.
How To Dispute Amazon Chargebacks/Deductions
Disputing Amazon chargebacks/deductions must be done within 11 days, or you risk losing out on profits. The conventional manual approach involves hiring multiple full-time employees to upload relevant documents to Amazon Vendor Central for each chargeback.
Robotic Process Automation or RPA is specifically designed to work with retailer portals, EDI, and other document sources to create and submit disputes. Whether it is Amazon, Walmart, Lowes, CVS or any of the twenty other retailers we support, iNymbus will streamline the end-to-end deductions management process & chargeback automation for your staff.
Our RPA is customized directly to your company's SOPs ensuring we maximize efficiency around your current tools and procedures. We do all of the heavy lifting to configure the bots and deliver a full, live product in as fast as two weeks.
These are the results our clients have got after they onboarded with iNymbus:
Processing chargebacks is a tedious process, but with the help of technology, you can not only fight this battle but also win it. Understanding your current process, what documents are needed, and how they are accessed is the first step to getting started with iNymbus.
Schedule a quick call to learn how iNymbus can help with your unique business needs and processes!