It’s no secret that Amazon has changed the game for online retailers of all sizes. They have given brands that sell everything from clothing to food products a place to reach hundreds of thousands to millions of potential consumers in one place. Many brands and vendors have thrived on platforms like Amazon and other retailers; however, certain guidelines that online vendors and brands must abide by create near-insurmountable hurdles on the path to e-commerce success.
Fines and deductions have become so prevalent when vendors don’t comply with these guidelines that, even when they do, many vendors and brands just accept them most of the time and consider them a cost of doing business. Although many of the rules are built to protect the consumer — and sometimes the vendor — the system is creating a web of red tape and a flawed business model that leads to frustrated vendors and hampered business ambitions.
One company is offering a helping hand to discontented vendors. That company, chargeguard, aims to keep Amazon honest and reclaim up to 70% of chargebacks and shortages for vendors seeking a return of revenue.
Recovery for vendors
“There’s one area of Amazon that’s been overlooked by almost everyone,” says John W. Collins, CEO of chargeguard. “Thirteen billion dollars — that’s the amount of money that Amazon is charging vendors and vendors every year in deductions and fees.” This stunningly large amount regularly cuts into the revenue for vendors, making building a profitable e-commerce business a hard road to traverse.
Through chargeguard audits, retailers can recover shortage deductions from up to five years ago. Chargeguard works to get their clients the biggest returns possible. One study showed that Amazon vendors’ fees had risen considerably in the last decade. In 2021, for instance, vendors’ fees could account for 34% of a seller’s earnings. The company provides clients with a complete Evaluation and Recovery Analysis report, allowing vendors to move forward with a new strategy or approach.
Chargeguard has certified Recovery Specialists, who they consider “Fee Fighters,” poised to take on the big e-commerce platforms and provide one-on-one assistance to vendors. These specialists provide expertise and efficient recovery. Chargeguard also provides vendors with ongoing root cause analysis and supply chain coaching to minimize future deductions and give them a good springboard for their business going forward. “Like any automated procedure, mistakes can be made, and funds are withheld from vendors that should have ended up in their pockets,” explains Collins.
A chargeguard audit is risk-free and carries no obligation for the seller. Vendors can see the whole amount that they can expect to garner from working with chargeguard and decide if pursuing recovery is worthwhile for their business. In some cases, chargeguard has been able to recover more than the audit estimated amount.
A Changemaker for retailers
When one takes on an e-commerce venture, one must be cognizant of all the expenses one can expect. Vendors who wish to use Amazon or other e-commerce platforms to build businesses know to expect fees on sales, fulfillment, and the expected chargebacks. The fees have been a boon for the e-commerce giant, allowing them to maximize their own profits where, all the while, vendors feel they are paying more and more with each transaction and getting less to keep.
Smaller e-commerce businesses rarely have the luxury of pulling out of Amazon altogether and surviving, as Nike did in 2019. Chargeguard is a changemaker, allowing vendors to gather more of what is theirs instead of further lining the pockets of massive tech giants.
Chargeback fees and other fees can be some of the worst parts of doing business on the internet. With chargeguard, vendors can change the trajectory of their ventures, getting a clear view of what they may recover and working with a company that has the knowledge and ability to get the recovery job done.