Amazon Vendor Operations with Merchant Spring
Sales Director Chris Khoo met with Paul Sonneveld of Merchant Spring to discuss Amazon Vendor operations and chargebacks.
Non-compliance can be one of the main pitfalls of Amazon Vendor Central, such as Purchase Order on time accuracy, ASN accuracy, order management, shipment management, packaging, invoicing, or deviation from Amazon standard practice. The resultant chargeback penalties can grow to become more significant as your business scales. Any process which deviates to cause slower Amazon processing can result in chargebacks. (See Shortage claims, root cause analysis)
The first step is to assess how big of a business priority is Amazon to you? How important is Amazon to you in terms of business scaling? It is important to have an internal conversation with account mangers and warehousing to identify key issues, as well as referring to raw data from Amazon’s chargeback dashboard:
- Purchase Order on time accuracy
- Carton information compliance
- Levels of shortage claims
- Impact on warehouse processes, identify improvements
- Identify issues in business scaling and peak seasonal booms
Common issues with operational efficiency lie within two areas:
- Process aspect - how the picking is done, how the items are packed and how the boxes are created.
- Technical aspect - Use of Amazon labels, AMZNCC labels or SSCC labels, GTIN receive. (see ASN creation options, everything you need to know
Order management, increased compliance and operational efficiency are key to both your business and Amazon Vendor Central efficient receive with a view to efficient scaling and minimised non-compliance chargebacks.