Amazon is the world’s largest marketplace averaging 197 million shoppers a month. Not annually, but monthly!
Any savvy business person instantly recognizes the potential to scale quickly when properly positioned in this multi-billion dollar marketplace as an Amazon Vendor. Tapping into Amazon’s high traffic flow gives Amazon Vendors the opportunity to generate higher sales and maintain a loyal customer base. This is all possible within Amazon’s Marketplace, businesses sustain long-term growth while leaving hefty room for the profit margin, yes!
Oh my precious…my profit margin, err wait, why did I get this fee? Amazon is calling it a chargeback?….
Amazon’s chargeback fees are assessed as a result of not following strict protocols. When the right workflows are in place, it is very simple for an Amazon Vendor to avoid chargebacks from eating into the bottom line. On the contrary, many Amazon Vendors find tracking all product information, EDI and API data – while keeping Amazon Vendor Central up to date challenging. Missing a deadline outlined by Amazon is always costly in money and resources, not to mention time. These penalties are slowly deteriorating the profits of Vendor’s who do not understand Amazon’s chargeback policies.
By the end of this article, you will learn about the three types of Amazon Vendor chargebacks as well as how to avoid them. We will also touch on a proven solution for integrating and automating Amazon Vendor Central EDI & API data flows 100% within NetSuite – avoiding chargebacks forever.
3 Common Types of Amazon Vendor Chargebacks
1. Chargebacks from ASN or Advanced Shipment Notification
In Fulfillment-by-Amazon (FBA), vendors must send the Advanced Shipment Notification (ASN) back to Amazon upon receiving the order. The most crucial part of sending the Advanced Shipment Notification (ASN) is making sure that you accomplish this procedure within the timeframe, following the Amazon protocol.
Failure to comply with the ASN protocol would lead to otherwise penalty or chargeback. Discrepancy or errors within the shipping information is an automatic chargeback.
2. Routing Request Chargeback
Suppliers or vendors are mandated to create a routing request upon receiving the orders from Amazon. Such essential details must be encoded with precision and submitted within the shipping window, allowing Amazon to know where to ship the products.
Unable to follow this requirement can lead to chargebacks.
3. Delivery Chargeback
If orders are not delivered on time, products must be sent back to Amazon within the designated schedule. Otherwise, Amazon will not only cancel the order but also make you pay for these mishaps.
Vendor Central is way much costlier when you are doing it the wrong way. It is imperative by the time you receive the invitation that you start identifying all of the Amazon Vendor Central chargebacks. By understanding these chargebacks, you will be able to know what solution your vendor central needs to eliminate these errors from happening in the future.
With the right ERP system, and correct integration of your Amazon Vendor Central, you can easily make some advancements on your API and EDI to send out shipping information on time.
To learn more about how to avoid Amazon vendor chargebacks, here are the things you need to know before integrating your Amazon Vendor Central.
Choose the right NetSuite Integration for Amazon Vendor Central
Identifying potential and current gaps in managing data flows is a crucial part in avoiding Amazon Vendor Central chargebacks affecting profitability. To avoid these fees, real-time syncing of EDI and API data flows between NetSuite and Amazon Vendor Central is critical. Just as important is the correct implementation of the NetSuite and Amazon integration. In8Sync has been a go-to for NetSuite integrations, automations and customizations for over a decade. Request a solution.
In8Sync’s solution to syncing EDI and API data flows between NetSuite and Amazon is Amazon Vendor Central DirectConnect, which is managed 100% within NetSuite. This NetSuite bundle comes with Out-of-the-Box functionality to automatically sync API and EDI data in real-time for dropship and non-dropship orders respectively. Learn more about Amazon Vendor Central DirectConnect.
Amazon Vendor Central DirectConnect not only manages all Amazon VC data flows, it also maintains compliance with Amazon’s protocols – eliminating the risk of chargebacks, or “profit killers.” Purchase Orders are automatically pulled from Amazon’s API and EDI into NetSuite, triggering Purchase Order Acknowledgements, Product Listing Stock Availability, Advanced Shipping Notifications (ASN), Shipment Confirmations and Invoices. This real-time full visibility of data allows the ability to anticipate future order demands as well as preventing chargebacks from chipping away at the bottom line. Request a solution.
Run Configurable EDI & API Scripts for Vendor Central
In8Sync’s Amazon VC DirectConnect runs scheduled data packets updating EDI and API files automatically syncing orders from Amazon Vendor Central to NetSuite. Set criteria triggered by transactions to send all necessary EDI and API files to and from NetSuite and Amazon.
For example, saved searches can be created in NetSuite to automatically generate Advanced Shipping Notices as required by Amazon. This solution properly integrated within NetSuite keeps Vendors in compliance with Amazon, eliminating chargebacks for good. Request a solution.
Optimize EDI & API Solutions for Dropship and Non-Dropship Fulfillment
In8Sync’s Amazon VC DirectConnect bundle streamlines the process of exchanging EDI and API data between Amazon Vendor Central and NetSuite.
This solution runs a NetSuite API script as often as 15 minutes based on saved searches for quicker transactions. It can also process EDI orders from Amazon and API orders from Amazon’s customers 100% in NetSuite. Easily fulfill both drop-ship and non drop-ship orders. Request a solution.
Generate Correct Shipping Information or Routing Request for Amazon
For orders Fulfilled by Amazon (FBA), you must comply with Amazon’s protocol on shipping information, containing all necessary instructions and data within the time limit. By integrating your vendor central on NetSuite, you can generate routing requests using a single platform and automatically send it out on Amazon.
For orders Fulfilled by Merchant (FBM), you can check out In8Sync’s 3PL solution to know more about the benefits of integrating your shipping operation with NetSuite.
Understanding these guidelines is crucial for correctly implementing all EDI and API data flows between Amazon Vendor Central and NetSuite. In8sync has the experience, technical expertise and deep NetSuite knowledge base to integrate and automate all necessary Vendor Central data flows. This is an affordable solution to avoid chargebacks forever.
Want to know more? Click here to request a solution to integrate Amazon Vendor Central with NetSuite.