Considering a reclaim service? Here’s how it could help

November 22, 2021

Making sure you receive the full payments for all the goods you ship to Amazon can be a full-time job. Packaging problems, misallocated stock, technical errors and more can all combine to mean you have challenges when selling to Amazon.

But, fortunately, it doesn't need to be this way. This article explores why using a reclaim service benefits vendors that are selling on Amazon. 

Why utilise a reclaim service?

In short: It's likely that if you've been trading with Amazon, then you'll have built up a balance of financial deductions either through chargebacks, shortages, price discrepancies or all of the above!

A reclaim service supports vendors to reclaim these payments. It can also help them understand why they get shortages and provide solutions that will prevent ongoing deductions. Sadly, many vendors don't realise an amount of money is missing and, when disputing after a long time, it can be harder to retrieve the correct data to settle a dispute. But it's money that Amazon owes you, and it can make a difference between profitable and unprofitable product lines. 

Why are chargebacks and shortages a problem? 

Chargebacks and shortages are a real pinch to the profit and loss. When money is missing from the expected amounts based on invoices, it can be an immediate cut to profit. If the business isn't getting paid, then it's lost revenue in the purest form. This scenario has a knock-on effect on profitability, but not in necessarily known ways; it can be so far down in the profitability calculations that it becomes hard to find. The impact is potentially even more significant in industries with tight margins. On top of this, the time, effort and resources taken to reclaim this money all impact other work and projects. 

How easy is it to get the money back?

Amazon's vendor central portal doesn't make it easy to figure out how much money is missing and then dispute how much money is owed between Amazon and the vendor. The key is knowing how Amazon works and understanding how to get repayment authorisation or how to stop the charges from happening.

On the vendor side, often, the finance team or even e-commerce managers end up taking on the role of disputing invoices. However, it's not directly part of their job role. These people are making it part of their job to raise disputes weekly, and settle disagreements about how much money is owed. It still takes up considerable time and distracts from their main job role and other customers.

Leveraging a professional reclaim service to take care of these disputes enables people to focus on their core responsibilities and free them from having to log disputes with Amazon.

A reclaim service will run an audit of your VC account to analyse the short payments and the value of reclaim it could likely recover. It carries out root cause analysis to understand why shortages and chargebacks are occurring. It works with your teams to recommend and implement process improvements to ensure these financial deductions and supply chain defects are reduced (eliminated where possible). Find out more here.


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