Faults in the FBA warehouse: how they arise and how traders expose them
Did you know how incredibly large the pool of undiscovered Fulfillment by Amazon errors is? While the goods are destroyed by mistake when relocating pallets, an item is lost on the logistics route or a customer is reimbursed twice the purchase price, often undetected and without compensation to the dealer. As a rule, marketplace dealers lack the necessary know-how and also lack the time to analyze every little detail and interpret corresponding errors. So it is clear that mistakes can happen, but should never go undetected. Because in the worst case, these mistakes can lead to traders losing hard cash. Read about what causes the most common FBA errors and how traders uncover them in order to get their lost money back in this blog post.
How should retailers imagine Fulfillment by Amazon?
Behind this fulfillment method there is one of Amazon shipping service provided. Instead of the dealer, the marketplace manages shipping, storage and all contractual obligations. This applies, for example, to all tasks relating to customer service and complaints that would result from the sale of goods for the retailer. Dealers opt for this Fulfillment method , the latter sends his goods to the corresponding logistics center and then pays for the shipping services used and the storage space.
Where do the most common FBA errors arise?
If a retailer decides to use the above-mentioned fulfillment method, the process is as follows:
- Delivery of the goods by the dealer
- Repacking and labeling of the items
- Distribution of products to different warehouses
- Storage in the storage bins and possible relocation
- Picking, packing and labeling
- Returns processing
What are the most common FBA errors?
Item is damaged by stock movements
If the delivered item is moved internally, for example in the warehouse or by the buyer, it can be damaged. Once this has happened, the goods can often no longer be sold, so Amazon has to dispose of them and therefore debits them from the inventory. In addition, with all the complexity and hectic pace in the shipping centers, the goods are incorrectly disposed of. Here, too, this is debited from the inventory. Articles that are simply “lost”, which can be seen in the inventory, are also debited from the inventory.
Amazon customers and retailers are aware that the generosity of the marketplace in terms of goodwill towards the buyer knows no bounds. It happens that buyers register a return and the money is credited back, although the product was never registered as a return. Dealers are therefore left with the loss of the goods and rarely discover the corresponding error.
Weight and dimensions are the basics that Amazon uses to calculate fees. If Amazon sends incorrect measurements or weights as a basis for calculation, excessive fees may result.
How do traders detect these FBA errors?
The good news: If such an error occurs, the legal situation is clear. If an item was handed over to Amazon, the loss in value must therefore also be paid for by Amazon. However, it should be noted here that the refund is not carried out automatically. It is the responsibility of the retailer to prove this loss of value and to report it accordingly. This means a lot of effort for the retailer, who has to link different reports and search for suspicious transactions in order to prove this.
How can he FBA controller help to uncover the errors?
As already described above, the effort required to compile the reports and open the cases can be quite difficult and, in the worst case, even uneconomical. To offer sellers support in this regard, we have the FBA controller developed. This makes corresponding FBA errors visible through innovative Lost & Found, prepares all reports precisely and documents data up to 18 months retrospectively. By using the controller, reimbursement claims become visible and with a few clicks a case is sent to Amazon for clarification. In this way, retailers can get back claims against Amazon without spending a lot of time and special know-how and can concentrate on their day-to-day business again.