6 Amazon Compliance Challenges Vendors Can Easily Win

3 people standing outside an office building laughing, smiling and looking at the tablet that one woman is holding.

Operational compliance challenges are an everyday reality for brands that sell on Amazon Vendor Central. Big business or small, there are countless opportunities for chargebacks and shortages to sabotage your net margin. 

Protecting your potential profit means meeting six fee-mongering challenges head on with a solution that’s as comprehensive as it is user-simple. (Yes, one really exists.) 

Amazon Compliance Challenge #1:
I don’t “speak” Amazon.

Amazon operational processes and standards for wholesalers are crystal clear … to Amazon. For most mere ecommerce mortals, those seemingly endless pages of freight guidelines are a modern-day Hydra — for every one rule you understand, two more addendums, appendices, or sub-bullets appear. 

Stripped down to its most basic level, the Ideoclick Pulse™ Compliance solution makes Vendor Central easy for you to understand. Advanced technology and years of Amazon expertise work together to translate Amazon terminology and the latest rules into a clear, actionable answer to one of your toughest ongoing questions: How do I improve operational performance to sustain profitability?

Amazon Compliance Challenge #2:
I can’t identify my chargebacks or shortages.

Amazon has a complex, one-of-a-kind accounting system. You have to manage a mountain of invoices no other ecommerce marketplace has. Remittance data for one transaction, for example, can be 20 full pages of invoices. Was there in fact a deduction from your expected profit? Was it a chargeback or a shortage? 

That’s exactly what our automated Pulse Compliance™ operational health dashboard shows you. Synthesizing multiple layers of disparate data, the dashboard provides unprecedented insight into the size of opportunity you have to prevent lost dollars through shortage claims, chargeback disputes, and open statements.

Amazon Compliance Challenge #3:
I’m missing a real-time snapshot of my profit & loss.

Putting together a complete view of your account receivables and deductions – without spending an unrealistic amount of time and resources – is a classic Vendor Central compliance headache. To keep a real-time P&L statement at the ready, you have to continuously cull Amazon invoices, dispute details, and payments data. 

We engineered the Pulse Compliance™ ledger to do all that tedious work for you. Detailed exports map all of the payments and deductions to each root invoice. You can also summarize the data by root invoice or include all subsequent payments and deductions. In other words: Here’s where your money is at, here’s what you’re still owed, and here’s where the dispute process stands. 

Amazon Compliance Challenge #4:
I have zero idea why a chargeback or shortage occurred.

It’s one thing to know you have a noncompliance fee. It’s another to figure out why. Discrepancies can occur anywhere in the lengthy supply chain process, making them hard to spot. And even if you’re 100% compliant when shipping into Amazon, you may still see shortage invoices and have to figure out what triggered them.

As Pulse Compliance™ pushes the boundaries of technology to home in on operational deductions with far less effort, our team of Amazon compliance experts quickly identify their root causes. We’re talking about a level of acumen that only comes with time and extensive exposure to Amazon. You just can’t fake it. Whatever efficiency issue you have, we’ve seen it before and can help you correct it.  

Amazon Compliance Challenge #5:
I know why I have a chargeback or shortage claim, but not how to prevent it.  

Brands that thrive on Vendor Central aren’t just focused on fixing one operational compliance problem. They’re fully committed to keeping new ones from occurring in the future. To get paid in full, you need to be as flawlessly efficient as possible right from the gate. The reality is that no matter how great the efficiency of a deduction recovery tool, it’s far harder to recover lost profits from Amazon than it is to keep them in the first place. 

Because Pulse Compliance™ is an entire suite of Amazon operational compliance services for vendors, the “fix” isn’t left for you to figure out. Customized compliance coaching guides you to smart, effective, and proven ways to realize the highest ROI in a constantly evolving marketplace.

Amazon Compliance Challenge #6:
I don’t have the time to deal with chargeback and shortage disputes.

Who does? The Amazon dispute process for chargeback fees and shortages is notoriously difficult and data-intense. Also, you have limited time to respond. Large companies can have hundreds of chargebacks a week, while even a handful can strain the resources of small to medium businesses. Then there’s the never-ending cycle of shortage invoices that shifts your focus away from disrupting future deductions.

Our advice? Hand off the dispute process. The Pulse Compliance™ technology and team will manage the complex process of disputing each deduction, all the way through negation and settlement. Time saved, faster resolution, and higher recovery rates could mean the difference between being profitable or not on Vendor Central.

Key Takeaways

No, you’re not alone. Amazon operational compliance is hard. Managing it successfully requires cutting through complexities every single day. There’s no alternative. What you do get to choose is how to position yourself so that you get paid on time and in full with less effort. 

Whether you need just one of our Pulse Compliance™ services or the full suite – or just want to commiserate with people who get it – we’re here to help. Contact sales@ideoclick.com to get a free operational health report that shows profit opportunities you’re leaving on the Amazon table.

About Tyrel Beutler

Ready to get started?

Get a consultation from Ideoclick experts.