In the last two blogs we’ve laid out the details that underpin Amazon shortage claims and impact your chances of successful dispute.
In short – the sooner you raise the dispute, the better your chances of winning. Within 30 days of the invoice due date is optimal. Anything after 40 offers very poor odds in your favour.
This time, let’s look at some of the key things that cause shortages… and how to avoid them.
The Number One Culprit – Shipping
Shipping is probably the most common reason for a shortage claim. All it takes is an error in recording the correct amount of products (at your end or Amazon’s) and boom… a shortage claim. These problems can be due to human error or inventory systems, at your end or at Amazon’s, but the result is the same.
Other Root Causes
Not everything can be laid at shipping’s door, though. Other reasons for shortages include:
Delivery error – The wrong items are dispatched, Amazon fulfilment guidelines are not followed, delays and receipt errors.
Poor tracking – A lack of tracking system in transit can lead to the loss or damage of goods and theft going unnoticed.
Labelling – Unclear or missing labels can result in goods being mis-scanned, uncounted or wrongly inventoried.
Lead time problems – If vendors fail to confirm a purchase order in a timely fashion it can lead to discrepancy.
There is also the possibility of manual error in scanning barcodes, incorrect packing and wrongly recorded load quantities, as well as a manual or automated errors in matching invoices and purchase orders.
Be aware of your ASN
An ASN (Advanced Shipment Notification) document is an important part of fulfilment. It offers detailed information to the customer on shipping, tracking and expected arrival.
Amazon issue chargeback alerts if the information is missing or inaccurate. This result in its own charge of up to 6% of the product cost – and is probably a topic best covered in detail in future blogs. However, errors in ASNs can also lead to shortages – if the number of units in the order does not match the information in the ASN document, or if the product requires an expiration date that is not recorded on the document.
It’s important to stay on top of your ASN information.
Tactics for Success
First of all, understand that some degree of shortage charge is inevitable when doing business with Amazon. The sheer scale of their business means that mistakes will occur, at your end or theirs. The better you are at responding to error, the better your chances of minimising losses.
Second, keep the best possible documentation of every order fulfilled. Do not rely on Amazon’s automated systems, which have been proven to make mistakes. Your own documentation is the bedrock for any shortage dispute.
Keep records of important info for each sale – including ASNs, shipment photos, credit card details, transit documents and invoices. Your own documentation is the bedrock for any shortage dispute.
Lastly, seek expert help. There are plenty of services that can take the manual hassle out of disputing shortages and eliminating future charges. Our own Vendor Connect Managed Service is designed specifically to help SME businesses combat this drain on their revenue.
Get in touch with us today for a conversation about how we can get all the benefit from your Amazon partnership.
