I recently joined forces with the folks at GETIDA to present back-to-back webinars on a topic I know interests all ecommerce business owners–Profits! As you read today’s blog, offered by Yoni Mazor of GETIDA, you’ll understand what I mean. This is exciting and I can’t wait to share more on Amazon Profits!
How To Increase Your Amazon Profits
If you’re an Amazon seller, this article is for you. It will teach you how to increase your Amazon profits by securing FBA reimbursements. There are five fundamentals to know about Amazon FBA reimbursements. They are the key to turning a loss in your Amazon business into a profit. This is especially true if you need access to more cash.
How Much Money Will You Recover?
1. How Much Can You Recover?
GETIDA data suggests that the discrepancy rate of FBA inventory can range from 1% to 3% from the annual Amazon FBA sales of Amazon sellers. This means that for every 100 units shipped to FBA, between 1 to 3 units are affected. Issues can include inventory that gets lost, damaged, destroyed, disappears, disposed, or overcharged with FBA fees.
This means that Amazon does amazing work at handling the inventory of third-party sellers between 97% to 99% of the time. This is an unbelievable achievement considering Amazon is dealing with a monstrous scale of tens of billions of dollars’ worth of inventory for third-party sellers.
However, if you are an Amazon FBA seller generating a million a year in FBA revenue, a 1% to 3% discrepancy rate can range between $10,000 to $30,000 which is significant. It is your responsibility as a seller to maximize all your available FBA reimbursements.
If the topic of Amazon FBA auditing and reimbursements is groundbreaking news to you, you better take action once finish reading this article. There is probably a boatload of funds available for you to get back into your pocket. We are confident that you will put the newly recovered funds into good use and fueling your Amazon business.
2. What Are The Rules?
Amazon provides sellers with an 18-month window period to conduct an FBA audit for most FBA related FBA transactions. Sellers can open cases for any eligible discrepancies and get reimbursements under Amazon’s FBA reimbursement policy. After the provided time frame for filing a claim expires, Amazon sellers have effectively lost the opportunity to recover their funds and file for FBA reimbursements claims. It is highly recommended for FBA sellers to ensure maximum recovery of available claims by filing cases in a timely matter and never miss out on an opportunity to recover the lost funds.
3. What are The Discrepancies Types?
A common logistical discrepancy with Amazon FBA includes inventory that gets lost during the FBA inbound receiving. This type of claim is limited to nine months in the US marketplace and six months in the UK marketplace. In addition, once your FBA inventory is in the Amazon fulfillment center, the inventory can later on also get lost, damaged, destroyed, disposed of, or disappear.
A major financial discrepancy that can reduce FBA fees once it is resolved, is when Amazon incorrectly overcharges sellers on FBA pick and pack fulfillment fees.
This is because of incorrect information on the weight and dimensions in Amazon’s data regarding your ASIN (Amazon Standard Identification Number). Amazon allows a time frame of only 90-days for providing such FBA reimbursements. Thus, Amazon sellers need to keep auditing their Amazon FBA transactions at least every 90-days for this type of discrepancy.
4. Recognizing the Unique Opportunity
Amazon sellers should always maximize the FBA reimbursements that they are eligible to receive under Amazon’s terms and conditions. If not, they will experience a double loss.
The first loss is the cost of inventory. Meaning the cost a seller pays to source an item. The second loss is the loss of profit. The reason is when Amazon provides an FBA reimbursement, Amazon is essentially “purchasing” the affected inventory from the seller as if the product sold on the platform. For most Amazon sellers, selling products on Amazon includes a good profit.
Therefore, if you recover the maximum FBA reimbursements that are available, you will effectively shift a double loss into a double win. FBA reimbursements help to recover your cost of goods AND your profit thus turning a business weakness into a business strength.
Once the positive momentum is back on your side and you are flushed with the funds of FBA reimbursements. You can then use the recovered funds to enhance your business growth by launching more products on the marketplace, invest more in PPC advertising campaigns, offsetting financing costs on loans such as daily payouts, cash advances, and more.
Amazon Sellers Can Recover all the Available FBA Reimbursements
5. What Can Be Done?
Whether you have never audited your account for FBA discrepancies, or you already have a certain Amazon FBA auditing process in place, or solely rely on Amazon to auto-reimburse you, you owe it to your business to get the full reimbursements that are available to you.
To make sure you are recovering everything you are owed, you can reach out to an Amazon FBA auditing solution such as GETIDA. It is free to join and set up your Amazon account with GETIDA, the reason is that they charge a recovery fee only from successful FBA reimbursements. If no reimbursement is secured, there is no cost. Every dollar of recovery is a pure value-added to your business, especially during challenging times.
In fact, signing up with GETIDA takes about 4 minutes and you will get instant access to a free dashboard that will provide you with data analytics and visibility into your Amazon account. Your GETIDA dashboard will also give you a free estimate of how much FBA reimbursements potential you can recover on your account.
If you wish to unlock these FBA reimbursements, you can then upgrade your account to the GETIDA FBA recovery service, and enjoy all the benefits of maximizing your FBA reimbursements.
$400 Offer for bookskeep Readers
GETIDA has partnered with bookskeep to help FBA sellers get access to more funds. They are offering you, the seller, $400 in Free FBA Reimbursements. Simply click the offer to activate this opportunity, and you will be ready to take your FBA auditing to the top level. We hope that this article was useful in learning how to boost your Amazon profit by getting FBA reimbursements and growing your Amazon business.
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Interested in Profit First for Amazon Bookkeeping?
If your ecommerce business isn’t where you’d like it to be in terms of profitability, check out my book, Profit First for Ecommerce Sellers. It answers important questions about how to implement Profit First in an ecommerce business. Take control of your money and your business, and put Profit First to work for you!
You can also sign up for the Profit First for Ecommerce Sellers Online Course. As a Mastery Level, Certified Profit First Professional, I will teach you why Profit First works so well for ecommerce businesses and the particular challenges for businesses that have physical products requiring inventory management. You will learn how your behavior drives your money management habits for your business and how you can set up your business bank accounts to work with your habits. Contact bookskeep today to learn more about accounting and bookkeeping for Amazon.