Seamless Recoupment: How Automation Helps Amazon Vendors Return Lost Profits
Every day, vendors that sell their products to Amazon risk significant profit leakage when overbilling and deductions get lost in a sea of millions of data points. In fact, Amazon vendors fail to find 90% of deductions on complex transactions. Recent studies show accounting errors result in an estimated $5,000 lost for every $100,000 in revenue generated through Amazon. Unfortunately, vendors lack visibility into layered profit margin and cash flow issues as most of the accounting software they use are not equipped for Amazon’s marketplace. In addition, endless hours required to correct lost profits consumes valuable resources and are nearly impossible to manage internally.
Recuperating lost profits is a challenge with an extended processing procedure that requires accounting teams to support claims with evidence and data that is tedious to surface—if it can be located at all. As a result, vendors have accepted lost profits as part of doing business on Amazon’s platform. Because of this, Amazon vendors require an advanced solution to recoup their losses.
Gaining Full Transparency Into Lost Profits
DimeTyd provides a solution to help eliminate lost profits and can recover up to 93% of profit leakage across several years of transactions. Solutions include:
- An automated accounting platform that analyzes up to five years’ worth of accounting data to find errors in claims and identify duplicate billing and chargeback
- Automatically reporting errors and recouping funds back to the vendor
- Providing vendors full transparency into findings during auditing and reconciliation
- Course correcting recurring issues, enabling vendors to maximize future profitability
- No upfront costs and are available based on a percentage of recovered funds
For ease and convenience, the DimeTyd platform is scalable and allows a business to continue operations unabated all while locating and replacing missing profits.
DimeTyd’s solutions extend to three key categories—Dispute Management, Financial Operations, and Financial Planning:
- Dispute Management: Protects vendors from missing the opportunity to dispute transactional entries from both payables and receivables and allows them to initiate disputes and recover unwarranted deductions seamlessly.
- This solution is an integration of the full spectrum of dispute management tools to ensure timely disputes and recover missed revenue.
- Dispute Management aids with overbillings by Amazon and shortages claims.
- Financial Operations: A fully automated solution that significantly reduces the number of resources required to 0.25 FTE (full-time employee).
- This solution provides vendors with precise, accurate, and timely reports that only need to be reviewed by the vendor.
- Financial Operations solutions help manage invoices, cash applications, operational chargebacks, and itemized shortage disputes.
- Financial Planning: Infuses AI predictive insights and advanced analytics through machine learning to help vendors make smarter business decisions and drive future-ready performance.
- This solution provides insights into drivers of revenue and profit and evaluates deeply at ASIN/SKU levels to help identify the most profitable business areas so vendors can shift accordingly.
- Financial Planning solutions help create financial scorecards, manage ASIN profitability, and provide ASIN forecasting.
Many companies across industries rely on the powerful automation capabilities of DimeTyd. Guardian Technologies, which offers a range of small appliance-based solutions to help people live happier and healthier at home, recovered more than $972,000 in incorrect, duplicate, and overbilled costs using the DimeTyd platform. Automation helped Guardian find inconsistencies in its year-over-year revenue and analyze hundreds of thousands of rows of data.
Earthlite, a leading provider of wellness, spa, and medical equipment, also chose DimeTyd to streamline its accounting processes and reclaim lost funds. Earthlite was struggling with limited visibility into Amazon’s accounting processes and the large volume of data that resulted in overbillings. DimeTyd analyzed hundreds of thousands of rows of data to find those overbillings and deductions. With those results, DimeTyd’s automated recoupment process recovered over $250K in funds and increased proficiency in Earthlite’s current accounting processes.
DimeTyd’s Role in the Future of eCommerce
E-commerce got a boost from the early stages of the COVID-19 pandemic when people avoided brick-and-mortar shops. The e-commerce world continues to grow in large margins with worldwide sales in retail surpassing $4 trillion in 2020. Meanwhile, Amazon is poised to overtake Walmart as America’s largest retailer in 2022. Even though Amazon is an important channel for B2B e-commerce vendors, the company’s inventory management and accounting practices can impede profitability. As more vendors join the Amazon marketplace, they must guard against the potential cash flow loss that can deteriorate profits and even shutter some product companies. DimeTyd stands ready to offer needed oversight and review to help Amazon vendors secure profits and avoid erroneous overbillings and deductions.
Moving forward, DimeTyd is positioned to stand as a leading voice in the growing e-commerce market, offering indispensable, convenient, and vital software needed for successful business operations.
Check out the e-paper “Narrative Discussion of Overall DimeTyd Life Cycle” to learn more about how an advanced solution for seamless reconciliation can provide more visibility into costly overbilling and deductions that go unnoticed.