Ideoclick Helps Amazon Vendors Increase Profitability

Ideoclick Helps Amazon Vendors Increase Profitability

Ideoclick Operational Compliance Dashboard helps reduce Amazon non-compliance deductions to sustain profitability

SEATTLE, June 30, 2020 /PRNewswire/ — Ideoclick, the leading e-Commerce Optimization company, today introduces its data-driven Operational Compliance Dashboard to quickly uncover non-compliance issues for vendors selling on Amazon. The Operational Compliance Dashboard helps Amazon vendors increase profitability by identifying non-compliance issues and reducing the related deductions to an acceptable threshold, which is typically less than one percent of COGS (Cost of Goods Sold).

Ideoclick previously launched its operational compliance service enabling Amazon vendors to increase profitability on Amazon, in recognition of the continual margin pressure brands experience. The service identifies potential recoverable chargebacks and shortages, manages the recovery process and identifies areas for improved operational compliance.

The new Operational Compliance Dashboard provides clients with a graphical summary of the data most relevant to their operational compliance health on Amazon. The dashboard quickly reveals the top three chargeback types, the necessary information for seeking recovery and repairing root cause, and status summaries of submitted and resolved disputes. Additionally, the dashboard features data drilldown for specific inquiries.

“The Operational Compliance Dashboard provides visibility to a powerful cross-section of complex Amazon vendor guidelines and specific Vendor Central data,” explained Shawn Oleson, Ideoclick’s senior operational compliance manager. “It provides us with the ability to advocate for our clients and provide insight into improving operational efficiencies which ultimately can reduce their cost to sell on Amazon.”

Justin Leigh, Ideoclick’s CEO explained, “The COVID-19 pandemic has changed the e-Commerce landscape forever with significant lifts but even tighter operating margins. Our operational compliance service and the new dashboard delivers actionable insights that can create net margin increases and enable brands to realize the full potential of the Amazon shopper audience.”

About Ideoclick
Founded in 2009 by former Amazon executives and harnessing over 200 years of Amazon experience, Ideoclick provides the industry’s leading e-Commerce Optimization Platform, delivering a unique combination of cloud-based software, subject matter expertise and insight to businesses that sell on Amazon. Ideoclick helps hundreds of leading brands achieve transformative results. For more information, please visit www.ideoclick.com.

*The above view of Ideoclick’s Operational Compliance Dashboard displays the type of Amazon Vendor Central chargebacks and the top affiliated purchase orders, fulfillment centers, and ASINs.

Copyright © 2020 Ideoclick. All rights reserved.

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.