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Sales & Ops
Shipment Tracker: Visibility and Actions to Reclaim Sunk Costs
August 20, 2021

Indirect marketplaces like Amazon are known for being scalable and algorithmically-driven, leaving nothing to human error. Except when it comes to shipping and receiving. Bustling fulfillment centers are one of the most error-prone parts of Amazon’s business due to the sheer volume of activity and people required to keep it running. Loading docks are busy with teams of workers checking in shipments, resolving items received against purchase orders (POs), and keeping inventory systems up to date. The scale is unimaginable. 

For any single brand, hundreds of POs traverse in and out of Amazon Vendor Central (AVC), and 1000s of SKUs are shipped across the country to any one of Amazon’s 50 fulfillment centers (FCs) involving numerous carriers. Mistakes cost brands millions, Shipping Invoice errors alone eat up to 2% of the cost of goods sold.

Large brands selling billions on Amazon are leaving millions on the table. Instead of developing a process to fix the issue, most treat shipping errors and losses as a sunk cost of doing business with Amazon. Those that do try to resolve the problem dedicate full-time resources to submit disputes one-by-one, identify shortages and assess which ones to prioritize first. It’s a lose-lose proposition, until now.

Here at CommerceIQ, we hate to see customers lose time and money on problems that can be solved through machine learning and automation. The Shipment Tracker available within CIQ Sales automatically filters out POs reported to have a lesser quantity being received than was shipped. Instead of manually tracking POs and fixing these errors, Shipment Tracker automates the entire process. No more missing scanned palettes or having the wrong case size in the system. This module also ensures compliance with Amazon’s Standard Operating Procedures (SOP) process to minimize issues between items received at Amazon FCs versus what was shipped. 

Shipment Tracker stops profitability leaks by mitigating the risk of Shortage Invoices or chargebacks (penalties) and cuts dispute rates up to 50% to free up valuable e-commerce team member’s time so they can focus on more strategic matters for the business. The new module includes:

  • Single Source of Truth: Eliminates inconsistencies between Amazon’s PO data, invoices and potential and remaining shortages.
  • Analysis of Valid and Invalid Shortages: Insights into valid versus invalid shortages by understanding the root cause of issues before taking action.
  • Timely action: Proactive and timely filing of tickets with Amazon within 24-48 hours upon receiving the invoice.
  • Unified Interface: Real time status tracking and customizable reporting to identify which items are being disputed, the cost being disputed and status of pending disputes.

High-performing brands know that winning in e-commerce means being proactive and leaving nothing to chance. Recovering lost revenue as a result of unintentional carelessness or human error is one of the easiest and fastest ways to boost profitability and margins. Shipment Tracker shines a light on the problem and provides a set of actions scientifically backed by machine learning and automation to reclaim revenue.

For more information, request a demo today or click here to learn more about CIQ Sales.