It’s no secret that more customers than ever trust Amazon when it comes to online shopping. Amazon’s reputation is so solid that 89% of consumers report that they are more likely to purchase an item from Amazon than other retailers due to the company’s reliability.
Although Amazon is a highly efficient titan of industry, the company still makes errors. If you are an Amazon FBA seller, you will eventually learn that Amazon sometimes loses or damages your stock. However, these losses do not need to affect your bottom line. This is where Amazon FBA audits can come in and save you money.
If you are wondering how FBA audits work, and why this process is so important, keep reading.
What Exactly are FBA Audits?
Joining forces with Amazon as an FBA seller means that Amazon is tasked with fulfilling your customers’ orders. This responsibility means that Amazon takes on some of the risks associated with fulfillment. After all, you are entrusting the care of your products to Amazon, and when they make an error, they must own it.
When discrepancies are found early, Amazon compensates both you the FBA seller, and any customers that are affected. Unfortunately, Amazon regularly fails to detect its errors on its own, which means you’ll be left to bear the losses on your own.
This is what makes FBA audits an essential component of an Amazon FBA seller’s business. At regular intervals, FBA sellers must scour their records to identify any errors and file claims with Amazon for reimbursement.
If this process sounds intimidating to you, you’re not alone. In order to ensure an FBA audit is done correctly, think about getting assistance from a company offering FBA refund services, such as GETIDA. With experienced professionals handling your FBA audit, you can focus on other aspects of your business — without missing out on any refunds.
What are the Benefits of FBA Audits?
You might be wondering if the hassle of FBA audits is really worthwhile. Given the small number of errors, could the losses really be that significant?
The answer is yes. Over years, discrepancies can make up an enormous loss in profits for your business, and depending on the size of your enterprise, this can account for staggering figures.
Putting off FBA audits is not an option since Amazon often allows only an 18-month window for FBA sellers to file FBA claims. Once this window is closed, your opportunity to get your money back is gone. Keep in mind that for some issues the window might be just 9 months, or even as brief as 90 days.
For this reason, FBA sellers should consider completing an FBA audit once per quarter to minimize their potential losses. This is the best way to ensure your business does not miss out on any of the cash that Amazon owes you.
If possible, you might do better to complete an FBA audit monthly in order to prevent a backlog of cases from building up. Remember, the sooner you file your FBA claim, the sooner your money will be back in your pocket.
Skipping FBA Audits Means Double Losses
In almost every case, FBA refunds from Amazon relate to a loss of inventory. This means that you are compensated for a product when it is no longer available to be purchased, for one reason or another.
Once you are in this scenario, you have already suffered the loss of the product, that is the price you paid to source the product. Without an FBA reimbursement, you are also losing the profit that the product could have created if it had been available for a customer to buy.
Now, let’s say that the discrepancy rate is just 1% to 3% for your FBA business. If your company’s revenue is $1 million, this means you’ll be losing $10k to $30k every year in profits. This amount of money is well worth getting back via FBA refunds.
What Types of Discrepancies Qualify for FBA Refunds?
A variety of errors can occur while your products are in Amazon’s care, and this makes it especially important to watch your records carefully. Since the range of discrepancy types is so wide, it is highly likely that Amazon will miss some.
A few of the most common causes of discrepancies are:
- Damage to the product during the shipping process.
- Damage to the product during warehouse/fulfillment center storage.
- Loss of product when shipped.
- Loss of product in warehouse/fulfillment center.
- Service fee overcharges.
- Shipping overcharges due to miscalculated product size.
When it comes to shipping overcharges, FBA sellers have just 90 days to file FBA reimbursement claims, making regular audits essential.
GETIDA’s FBA Audit Service
As you learn how much FBA refunds can add to your bottom line, you might be bracing yourself to complete an audit of your seller transactions. This means devoting a significant amount of time to reviewing your records. If this sounds a little tedious, consider seeking the services of a company that specializes in FBA audits, such as GETIDA.
After taking a few minutes to sign up with GETIDA, you will be provided with a free dashboard that estimates your potential FBA refund. If you choose to pursue this refund using GETIDA’s services, all you need to do is upgrade your account, and then wait for your money to be returned.
Because GETIDA only charges you when they secure your FBA reimbursement, there’s no risk and no commitment when using their FBA refund solution. Thanks to state-of-the-art software and knowledgeable case managers, your FBA reimbursements will reach their maximum potential. All the while, you can use your time and energy to improve other areas of your business.
As you go forward with your FBA audits, be vigilant about Amazon’s deadlines, as well as the range of discrepancies that can create losses. Want to maximize your FBA refunds? Experts such as GETIDA are ready to help you understand the importance of FBA audits and get the refund you deserve.
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