Editor’s Note: This is a guest post by Yoni Mazor, COO & Co-Founder at GETIDA.
If you’re an Amazon FBA seller affected by the latest restrictions on FBA inbound shipments, and as a result expect to sell less products, there’s a good chance that the cash liquidity of your business might get seriously affected very soon.
Here’s how GETIDA can assist many FBA sellers in getting more funds back into their business, and hopefully surviving this crisis with minimal damages.
Amazon provides an 18-month lookback period for sellers to audit all the FBA related transactions. You can open Amazon Seller Support cases to get reimbursed for any discrepancies found that are eligible for reimbursement under the guidelines of Amazon’s FBA reimbursement policies. There is a myriad of financial and logistical discrepancies that can occur during the life cycle of the products that Amazon sellers ship to FBA.
The data of GETIDA, a technology company that specializes in auditing and recovering funds for Amazon FBA sellers worldwide, suggests that the discrepancy rate of products shipped into FBA is between 1%-3%. This means that for every 100 units shipped to FBA, between 1-3 units will be affected.
On the flip side, this data suggests something truly amazing! Amazon does an excellent job with handling the inventory of third-party sellers, even when dealing with tens of billions of dollars’ worth of inventory.
If for example, you’re an Amazon FBA seller selling $1 million a year on FBA, your 1%-3% discrepancy rate can range between $10K-$30K. It’s your duty as a seller to do everything you can to maximize your eligible FBA reimbursements.
A few logistical reasons why your FBA products might experience a discrepancy are that units may get lost during the initial inbound process. Inventory units can also get lost, damaged, destroyed or even disappear inside the FBA centers after the initial stage of being received in the FBA facilities.
In case of any type of financial discrepancy, there’s a 90-day period in which your FBA reimbursement is discovered. After 90-days, the eligibility for this type of an FBA reimbursement expires. Therefore, Amazon sellers now, more than ever before, need to stay prudent and ensure to audit their Amazon FBA transactions every 90-days at the very least.
Amazon sellers must secure the maximum FBA reimbursements that they are eligible for under Amazon’s terms and conditions. If they don’t, they could experience a double loss. The first loss is the cost of goods, meaning the cost of the inventory that a seller paid to source the item and have it in-stock. The second loss is the loss of profits. When Amazon reimburses an FBA seller, they reimburse them as if the products were sold on Amazon.
For most Amazon sellers, the price of selling products on the marketplace usually includes a profit. Therefore, if you recover the maximum FBA reimbursements you are eligible for, you will shift the double-loss momentum into a double-win. In this case, you will be able to enjoy the added liquidity of cash that you will receive from the FBA reimbursements that will recover your cost of goods and your profits.
Whether you have never audited your account, or already have an Amazon FBA auditing process put into place, or just rely on Amazon to auto-reimburse your account, you owe it to your business to reach out to an Amazon FBA auditing service such as GETIDA.
We charge a recovery fee only from successful FBA reimbursements that are secured. If nothing is secured, you pay nothing. Therefore, every dollar of recovery using such a service is a pure value add for your business, especially in these difficult times.
Sign up to GETIDA and get instant access to a FREE dashboard, providing you with data analytics and visibility into your Amazon account, as well as an estimate of how much FBA reimbursements potential you can recover.
If you wish to unlock these FBA reimbursements, you can enable GETIDA’s FBA recovery service and reap all the benefits of maximizing your eligible FBA reimbursements.
We’ve partnered with Payoneer to offer the Amazon Stimulus Package (ASP) to help FBA sellers get access to more funds. Simply click on GETIDA and you will get the first $1,000 in reimbursements free of charge. We hope that this helps your business needs during this challenging time.
Please stay safe and healthy, and we hope good news is still ahead of us!
Yoni is the COO & Co-Founder of GETIDA. He began developing GETIDA after successfully operating a $20 million yearly Amazon FBA business, selling fashion brands internationally. GETIDA specializes in eCommerce discrepancy analytics and consulting. By utilizing data visibility technology, GETIDA focuses on discovering and managing financial and inventory-related discrepancies with billions of dollars of transactions managed annually. Yoni also comes with military intelligence experience, having served in the IDF Special Navy Intelligence.