Amazon Shortages: Optimize Recovery with Vendor Central

Amazon and Amazon Vendor Central are quickly becoming the number one headache for many accounts receivable managers due to the sheer volume of deductions, including for shortages and the procedures required to research and resolve them.

Amazon shortage deductions are a significant challenge due to their volume and relatively small dollar amounts. Begin your dispute resolution process by addressing all deductions with reason codes related to shortages. Our study shows that all the work that goes into properly disputing these claims pays off, leading to a recovery rate exceeding 75% but, to achieve success, ensure you have the following in place:

• Proof of Delivery (POD): Documents that clearly demonstrate Amazon received your inventory. 
• Package Weight Evidence: Your preferred carrier can provide records showing that packages were scanned and delivered with the correct weight, further supporting your claim.
• Photos of Carton Labels: Visual evidence of carton labels enhances the credibility of your case.

Use Amazon’s Vendor Central portal to submit disputes via the Dispute Management section. This platform allows you to attach required documentation, track the status of claims, and follow up on unresolved cases.

Pro Tip: Package weight discrepancies are often critical in shortage disputes. Ensure all carrier records are readily accessible and match the shipment details on your invoices and POs.

Chargebacks: Unlock a High Recovery Rate, Don’t Lose Profits

Disputing Amazon chargebacks can feel challenging, but a structured approach can lead to a substantial recovery rate. Amazon chargebacks generally fall into five categories:

1. Purchase Order (PO) Issues
2. Receipt Issues
3. Advance Shipment Notification (ASN) Errors
4. Transportation Violations
5. Preparation Noncompliance

For each chargeback, Amazon Vendor Central provides specific details, including PO numbers, ASN numbers, shipment dates, and descriptions of the issue. To successfully dispute chargebacks:

1. Review the Chargeback Details: Click on each chargeback in Vendor Central to identify the exact issue and gather all relevant data.
2. Compile Supporting Evidence: Include shipment confirmations, delivery records, and error-free ASNs to address the identified issue.
3. Submit Individual Disputes: Each chargeback requires unique supporting documents, which must be uploaded separately in the portal.

Good evidence leads to approvals. Vendor Central enables you to track your submissions, ensuring disputes are processed efficiently.

Other Deductions

Dispute Processes: While the general principle of providing strong evidence applies to all disputes, the specific documentation and approach may differ for Returns and CoOp charges compared to standard chargebacks.

1. Returns: These are deductions related to customer returns. They can be more complex to dispute as they often involve factors outside your direct control.
2. CoOp Charges: These are deductions related to cooperative marketing agreements. Discrepancies might arise from disagreements about accrued funds, invoicing errors, or the application of funds to specific marketing campaigns.  

Leveraging Amazon Vendor Central for Efficient Dispute Management

Amazon’s Vendor Central portal is the primary tool for managing deductions and chargebacks. To optimize your recovery process:

• Stay Proactive: Regularly review deductions and chargebacks to ensure disputes are filed within the allowable time frame.
• Utilize Reporting Tools: Features like the Vendor Operational Performance (VOP) tool help track key metrics, identify recurring issues, and improve compliance.
• Adhere to Guidelines: Familiarize yourself with Amazon’s compliance standards for packaging, labeling, and shipping to minimize future chargebacks.

Additional Tips for Success:

• Be prepared to provide detailed shipment data, including PODs, carrier weight scans, and carton label photos.
• Ensure your ASNs are accurate, as these are often scrutinized in chargeback disputes.
• Track dispute outcomes and recurring issues to identify patterns that can help reduce deductions in the future.

By utilizing the tools and features available in Vendor Central, maintaining accurate records, and submitting robust evidence, you can recover significant amounts from shortages and chargebacks while improving operational compliance.

Smyyth + Carixa Recovery

Smyyth’s proprietary technology driven Amazon Audit & Recovery services assure you the maximum deduction recovery, guaranteed or no fee. Using specialized technology, tools, and decades of expertise, we will solve this problem for you from automated POD capture and Vendor Central dispute, and following through for Amazon payback.