The Amazon marketplace is notorious for making frequent updates that impact sellers and third-party brands. As more businesses shift to utilizing ecommerce marketplaces like Amazon, understanding the cost to serve on each platform is crucial. Essentially, a brand’s cost to serve refers to insight into the myriad of factors that impact the true cost of doing business on a platform. To maintain profitability in this fast-growing channel, brands must discover how to optimize their operational compliance on Amazon.
Amazon has strict requirements for manufacturers that deliver products to their warehouses, and failure to comply with these requirements can be extremely costly, resulting in chargebacks and shortages. These claims can significantly cut into vendor margins, ultimately making ecommerce a much less profitable channel.
Ideoclick’s client, a major player in the healthcare products industry, accrued over $300,000 in shortages over 12 months. Using Ideoclick’s Pulse Compliance dashboard, operational compliance experts were able to aggregate client data to identify shortages and chargebacks from Amazon.
Read Ideoclick’s case study to discover how we were able to identify discrepancies, solve for the root cause, and tackle the dispute resolution process. This process not only allowed us to recover funds for our client, but alleviate any future shortages as well.