In this episode of Selling on Giants: The eCommerce Marketplace Show, the guest speaker is Yoni Mazor, co-founder of GETIDA, the global leader in Amazon FBA auditing and reimbursement solutions. An authorized member of the Selling Partner Appstore and Amazon Emerald Program, Getida helps sellers reimagine FBA reimbursements as a strategy for growth. Yoni today talks about the process of “FBA Auditing And Navigating Reimbursement Challenges”.
Today, we explore strategies for maximizing Amazon seller reimbursements with GETIDA. We’ll discuss how GETIDA partners with sellers to manage and recover lost funds through two flexible partnership models. Learn the differences between Fulfilled By Merchant (FBM) and Fulfilled By Amazon (FBA), and the importance of addressing inventory discrepancies. Discover how GETIDA’s award-winning technology aids in identifying and resolving fulfillment overcharges. Join us to understand the impact of proper reimbursement practices on your profitability and business growth. Don’t miss out on “FBA Auditing And Navigating Reimbursement Challenges”. Unlock the potential to take your business to unprecedented heights!
Key takeaways: / Short Summary:
Partnering with GETIDA for Amazon Seller Reimbursements
- GETIDA educates sellers worldwide on maximizing reimbursements and encourages them to partner with GETIDA for assistance.
- There are two ways to partner with GETIDA: letting them resolve the whole reimbursement process or customizing the partnership to fit the seller’s existing efforts.
- GETIDA acts as a backup security for sellers, offering to address and recover unrecovered reimbursements if the seller does not want to handle it themselves.
- The partnership with GETIDA depends on the comfort level of the seller and can involve GETIDA doing everything, something, or working together with the sellers’ resources.
Fulfilled By Merchant (FBM) vs. Fulfilled By Amazon (FBA)
- There are two options for selling on Amazon: FBM (fulfilled by merchant) and FBA (fulfilled by Amazon).
- FBM means the seller picks, packs, and ships orders directly to the customers.
FBA involves sending inventory to Amazon’s fulfillment centers, where Amazon manages the shipping process. - In the case of missing units in FBA, the seller is responsible for reconciling and resolving the issue.
- Solutions for missing units include providing documentation such as invoices, proof of purchases, and proof of deliveries to Amazon.
- Amazon may reimburse the seller for missing units, but a fee is charged only if reimbursement is received.
- Joining and staying with GETIDA is free, with no subscription fees and the ability to cancel anytime.
- After sending inventory to Amazon, the process becomes more complex once FBA inventory units are inside Amazon’s fulfillment centers.
Amazon Inventory Management and Logistics Friction Points
- Inventory discrepancies can occur within warehouses, as well as between warehouses, as Amazon may shift and move products across the country for Prime shipping.
- Fulfillment centers may also experience discrepancies in inventory, leading to issues with orders, customer returns, and refunds.
- Sellers may encounter issues when removing inventory from Amazon’s Fulfillment centers, resulting in potential discrepancies.
- GETIDA technology monitors these friction points in inventory management and logistics, identifying discrepancies and providing clear data to Amazon for resolution.
- The high accuracy level of GETIDA technology’s monitoring often results in reimbursement for sellers, making the process effective and beneficial for them.
- Annual discrepancy rates on Amazon can vary, highlighting the potential impact and importance of addressing inventory management and logistics friction points for sellers.
Maximizing Reimbursements for Amazon Sellers
- Between 1-3% of revenue can be recovered through properly reconciling discrepancies in FBA revenue.
- The amount that can be recovered increases as revenue grows, with potential recoveries ranging from $100,000 to $3 million for larger sellers.
- For every 100 units shipped to Amazon Fulfillment Centers, 1-3 units are likely to experience discrepancies throughout their lifecycle.
- The missing delta in reimbursements can be significant for sellers, and recovering additional funds can have a big impact on profitability.
- Sellers lose both the cost of goods and potential profit when they do not receive the maximum reimbursements they are entitled to from Amazon.
- Recovered funds can significantly boost profitability and improve the sellers’ profit and loss statement.
Maximizing Reimbursements for Amazon Sellers
- Encouraging sellers to reinvest cash into their businesses for advertising and driving more traffic
- Increased traffic leads to more sales, conversions, revenue, and profit
- Smart sellers invest in resources and capital with clear intentions of growing and maximizing reimbursements
- Uneducated sellers are at risk of losing profitability due to lack of awareness and education
- Importance of monitoring listings, catalog aspects, inventory, and financial discrepancies
- Examples of inventory-related and financial discrepancies that can lead to overcharging by Amazon
GETIDA Platform and Dashboard Technology
- Amazon charges a fee based on the weight and dimensions of the items being fulfilled.
- Incorrect data in their system can lead to overcharging for fulfillment, resulting in significant financial discrepancies.
- GETIDA offers a user dashboard that provides real-time visibility into cases, statuses, and historical data.
- The dashboard technology has won the Gold Award from the Amazon Business Award for its innovation in providing real-time visibility into fulfillment processes and discrepancies.
- The platform has a Pick and Pack module that allows users to input correct weight and dimensions for items in their catalog, leading to additional layers of reimbursements for fulfillment overcharges.
Amazon Fulfillment Fee Auditing and Reimbursement
- The process of auditing Amazon fulfillment fees can be done manually for small catalogs, but for larger catalogs, a template can be downloaded and data can be uploaded in bulk.
- If overcharges are found, the objective is to fix the issue so that Amazon stops overcharging in the future, resulting in cost savings for the seller.
- The reimbursement is limited to 90 days, so it’s important to have a partner for auditing and reimbursement to proactively monitor and catch any overcharges in real time.
- Sellers need to be aware of the rules and expiration dates for reimbursement claims, as they may miss out on recovering a significant amount if they don’t act within the 90-day window. Service providers for auditing and reimbursement can help sellers navigate the process.
Timely Reimbursement and Auditing on Amazon
- Fulfillment fees audit is limited to 90 days when shipping inventory to Amazon’s fulfillment centers in the United States, 9 months in North America, and 6 months in the EU and the United Kingdom.
- Different geographic regions have different time frames for claim reconciliation, so sellers need to be aware of the specific time frames for each region they are selling in.
- Other types of discrepancies, such as lost inventory, damaged inventory, customer returns, and removal issues, have an 18-month window for reconciliation.
- Amazon has been narrowing down the time frames for handling claims, making it more complex and demanding for sellers and leading to more solutions in the industry.
- The whole industry of advertising and reimbursement on Amazon is constantly evolving and becoming more advanced, sophisticated, and intricate over time.
- Amazon also updates the Fulfillment fees and thresholds once or twice a year, leading to additional complexities in tracking and monitoring these fees.
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Links:
- LinkedIn – Personal: https://www.linkedin.com/in/yoni-mazor-b204a274/
- Branded – Linkedin: https://www.linkedin.com/company/getida/
“Selling on Giants: The eCommerce Marketplace Show” is sponsored by BellaVix.
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