How to Fight Chargebacks In The Most Cost-Effective Way
Let’s set the scene – you’ve happily sent Amazon your products for them to sell. You send them boxes and boxes of the stuff, and you’re over the moon for making such a great sale. Ka-Ching! Shortly after invoicing Amazon for what you should rightfully be earning, they hit you with a bunch of confusing chargebacks and deductions. Now you’re not getting paid in full, your business is losing out on money, and it’s affecting your profit margins.
Whether you like it or not, chargebacks and deductions are a natural part of retail compliance programs. They’re not there to make you lose money, but rather to increase efficiency, improve the supply chain, and help retailers grow.
Ok, so what can you do about it?
If you want to know how to fight chargebacks in the most cost-effective way and preserve your business’s bottom lines, you’ve come to the right place.
What Are Chargebacks?
Before we dive in, let's cover the basics - what exactly are chargebacks and deductions to start with?
Big retailers like Amazon and Walmart have all implemented vendor compliance programs and scorecards in recent years to encourage their vendors to accurately hit quantity and timeline targets. Vendor chargebacks are issued when these suppliers fail to operate within these set parameters.
Shipments that do not comply with retailers’ standards can cause delays and supply chain inefficiencies, and chargebacks are issued in the latter’s bid to recuperate financial losses. Unfortunately, deductions can have big impacts on vendors’ profit margins, leading to tens of thousands of dollars in revenues lost.
Thankfully, there is a silver lining on the horizon.
You can successfully dispute and chase chargebacks to recover your own chargeback-related costs. When done manually, this is a time-consuming and potentially expensive process – but automated solutions like iNymbus can help.
Our robotic process automation software automatically disputes chargebacks on your behalf, so you don’t even need to know the technical details of how to win a chargeback in order to recover your losses!
What Are Your Options?
Knowing how to fight chargebacks means knowing your options when it comes to this resource-intensive process.
There are four primary options for you to choose from:
- Staff augmentation. This option involves hiring more staff to handle the claims and deductions process. This is not a scalable option, and the results it produces are not always desirable. Hiring and training resources to upload claims to retailer portals is not only time-consuming, but it’s also extremely unsatisfying. Additionally, it can cost your business significant sums of money in both salaries and potential financial losses due to chargebacks.
- Outsourcing the chargeback and deductions operations to a third party. This option requires you to transfer your deductions processing tasks to a qualified third party. However, in this scenario, all you’re really doing is transferring the problem to someone else! It still involves time- and money-consuming manual input. On top of this, the company you’ve outsourced to will take a revenue share. You’re trying to get your money back from the retailer, not give it away to someone else!
- Deduction management Modules. New deduction management software models can manage and chase chargebacks to a degree, but they cannot reduce or solve deductions. Keep in mind that these sort of add-ons may require a whole IT team to deploy, implement & configure. You’ll end up spending a lot of money, but the problem isn’t really solved.
- iNymbus’s cloud robotic process automation tool. Our cloud-based solution is easy to implement and is cost-effective for any business. It has the power to completely automate the deduction workflow, eliminating manual work entirely! You give us the data, and we’ll automate the process. It’s that simple.
Clearly, using our software is the option with the power to save you the most time and money on staffing, process outsourcing, and deductions recuperation. iNymbus maximizes your chances of successfully disputing deductions as well, ensuring that you can win back as much of your lost revenue as possible without having to compound your losses with ongoing administrative expenses.
