How Ideoclick Helped a Client with Amazon Operational Compliance and Recovered over $235,000

How Ideoclick Helped a Client with Amazon Operational Compliance and Recovered over $235,000

Brands that sell on Amazon through Vendor Central must adhere to very specific operational compliance processes and standards in order to be paid in-full by Amazon. Any discrepancies resulting from purchase orders, shipping, receiving, packaging, and data misalignment may result in chargebacks to the vendors and significantly cut into their earnings. 

At Ideoclick, utilizing our Operational Compliance Health Dashboard, we aggregate client data to identify deductions from Amazon in the form of chargebacks and shortages resulting from non-compliance. Our team of Operational Compliance (OC) experts then work to identify root-causes for the chargebacks, as they are symptoms of operational issues that lead to shortages. The OC team then manages the complex process of dispute resolution to recover funds on behalf of the client. 

For one of our clients, a major player in the healthcare products industry, we were able to demystify the complex invoice hierarchy system produced by Amazon to identify a shortage amount of over $300,000, which had accrued over a 12-month period. Of that amount, we successfully managed the dispute process to recover $235,175.05 in shortages for the client. 

Critically, Ideoclick identified the causes for the shortages. In this instance, many of the casepacks were improperly scanned at the Amazon fulfillment center due to labeling issues during the vendor’s shipping process. The vendor also received chargebacks related to advanced shipping notification (ASN) complications. The identification of these root causes was critical in enabling the client to change its labeling and ASN practices to avoid future chargebacks that subsequently lead to shortages.  

“Many vendors just accept chargebacks as a cost of doing business with Amazon, as they don’t have the time or systems in place to make sense of Amazon’s reinvoicing system or investigate where the non-compliance originated,” explained Shawn Oleson, Senior Operations Compliance Manager at Ideoclick. “Our process of identifying the discrepancies, helping to solve for the root-cause, and handling the dispute resolution will enable many more of our clients to recover funds, as well as avoid future chargebacks. Ultimately, we are helping clients conform to Amazon’s highly efficient ways of doing business on a massive scale – so both the consumer and the vendor stand to benefit.” 

Ideoclick provides a complimentary initial assessment of clients’ overall supply chain defect and cost profile based on a vast set of Amazon data and Ideoclick analysis. Clients can also gain additional details of shortages and deductions for up to three previous years of selling on Amazon.  

Vox Podcast “The Rise of Amazon” Features Insights from Ideoclick’s Andrea Leigh

Vox Podcast “The Rise of Amazon” Features Insights from Ideoclick’s Andrea Leigh

Recode’s Jason Del Rey dives into the history of Amazon’s success in this Vox Media/Recode podcast “The Land of the Giants, The Rise of Amazon” featuring insights and memories from Ideoclick’s Andrea Leigh, who was a ten year Amazon executive. Additional current and former Amazon contact interviewed to provide perspective on the creation of what is considered Amazon’s biggest win: Amazon Prime. This podcast episode, titled: Why You’ll Never Quit Amazon is described by Vox, “Since its invention in 2005, Prime has dramatically altered consumer psychology. Land of the Giants is a deep dive into how this bland idea was powerful enough to alter online retail forever.”

This podcast specifically explores the history and prevalence of Amazon Prime. You can listen here.

Ideoclick was founded by former Amazon executives and our staff has over 200 collective years of Amazon experience.

Helping Brands on Prime Day – Ideoclick Featured on Yahoo Finance

Helping Brands on Prime Day – Ideoclick Featured on Yahoo Finance

Ideoclick Helps Brands Understand the Data that Creates Interactions and Drives Transactions on Amazon

On The Move, the Yahoo Finance digital streaming news segment that looks at top headlines and in-depth analysis of what is moving the markets, reported on Amazon Prime Day and sought insight from Ideoclick’s CEO Justin Leigh. In this segment, Leigh discusses Amazon Prime Day changes over the years from the brand participation standpoint, how Ideoclick helps brands navigate the Amazon platform, and customer behavior data that drives the Amazon recommendation engine. You can view the news segment here.