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.”
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.
Amazon vendors have been asking for help strategizing and managing their negotiations with Amazon. If you haven’t already closed Annual Vendor Negotiations (AVN), here’s a summary of everything we’ve previously published on the topic.
5 Major Pitfalls to Avoid When Negotiating with Amazon
How to Not Get Eaten Alive During Your Annual Amazon Negotiations
The Jason & Scot Show episode on Negotiating With Amazon
Videos and Infocasts
Video commentary on margin guarantees
We have developed a handy negotiations tracker that can help you organize your current terms, Amazon’s ask, and plan your response. You can also calculate your total cost to serve as a percentage and dollar value to help you stay on your toes while negotiating.
What Amazon’s increasing move to self-service means for your brand
Several brands have reached out to us in a panic this week after reading some recent news claiming that they would no longer have access to an Amazon Vendor Manager. Here’s what you need to know about the program and what you can do.
First, don’t panic. Nothing is really changing.
This isn’t a sudden or extreme move, and it’s nothing new. Amazon is continuing its gradual and ongoing shift to automating roles and making the experience of selling on Amazon more self-service for brands. It started several years ago when Amazon launched their first HOTW (Hands Off the Wheel) programs internally, and began holding employees accountable for automation improvements. So don’t worry, the Amazon Vendor Managers are certainly still there…and they still want your money.
The Vendor Success Program, or VSP, described in these articles isn’t new either – it’s been around since about 2014 and has traditionally applied to brands whose sales are below about $10M/year. Chris Brugos, the previous manager of the Vendor Success Program and now Ideoclick’s leader of Catalog and Content services teams, characterizes the program as a little bit of a “middle finger” for brands.
“What it really means is Amazon has reduced the work of a Vendor Manger to a series of algorithms and Standard Operating Procedures, all executed by a team of offshore associates and customer service agents.” According to Chris, “It can work in your favor if you know how to game the system.”
Your Vendor Manager probably isn’t your key to success on Amazon, anyway.
Contrary to a buyer at a traditional retailer, the Amazon Vendor Manager is unlikely to deliver category insights, collaborate on new product development ideas, or help you engage with Amazon’s senior leadership. Instead, they’ll assist with the occasional purchase order or receive-related issue, terrorize you about CRaP, and try to sell you expensive merchandising packages. This person isn’t typically not your biggest advocate at Amazon, and this is by design – a Vendor Manager’s function isn’t to help manufacturers or make it easier to sell on Amazon; it’s to drive growth in profit and sales, optimize the selling platform, and provide a multitude of internal reporting and project management functions. In addition, given the turnover at Amazon, more and more manufacturers are more platform savvy than newer Amazon employees.
A better advocate for your brand is likely your Amazon Advertising Account Executive. Our clients typically receive better insights, data, and follow-through on their Amazon business from the ad team. Apparently, advertising sales are still a relationship-driven business!
If you’re smart, you’re already educating yourself, hiring a team, and becoming self-sufficient on Amazon
There are droves of agencies (ours included), educators, and third-party firms and software – much of it free – that are in the business of educating and executing business on Amazon. Once you understand the Amazon engine, it’s not hard to develop your growth strategy, predict Amazon’s moves, and staff a team correctly to support the business. With the right strategy and tools, many manufacturers – small and large – are plenty effective on Amazon with little to no contact with the Amazon retail team. You can do it, too!