Drowning in Amazon chargebacks? Automate recovery and protect your bottom line

Amazon deductions hit your bottom line

For many ecommerce brands on Amazon, driving top-line sales is only half the battle. A significant but often overlooked performance driver is efficiency, specifically protecting margins against a constant stream of deductions. These often inaccurate deductions come from issues like quantity and pricing shortages during Amazon’s receiving process, inflated co-op overages, and recurring chargebacks.

Without addressing these leaks, sales growth alone can’t deliver the profitability that brands, and their Amazon Sales Managers, are ultimately measured on. This problem is exacerbated because the traditional, manual approach is highly inefficient and often not worth the labor invested.

What's driving chargebacks and leaks in your ecommerce performance?

These is driven by:

1. Overwhelming volume

Co-op invoices alone can involve "tens of thousands of line items". Manually sifting through such a massive volume of deductions, large and small, is a monumental and time-consuming task for internal teams.

2. Disproportionate effort for small recoveries

Many deductions, particularly in co-op agreements, can be "pennies on the dollar" or "lower value deductions", but cumulatively add up to tens or hundreds of thousands, or even more, on an annual basis. Each individual claim can take at least 15 minutes to resolve manually. Spending 15 minutes of labor for a chance at a few cents or a few dollars back quickly becomes an unsustainable and unproductive use of time.

3. Diversion from strategic tasks

The dozens or hundreds of hours spent annually on manual profit recovery divert valuable internal resources and labor away from more strategic initiatives that could drive growth.

This leads to direct financial leakage and a diminished gross-to-net profitability, as the cost of manual recovery often outweighs the potential, smaller gains.

CommerceIQ's Profit Recovery Automation solution

CommerceIQ ensures brands operate efficiently by automating the complex and time-consuming process of profit recovery on Amazon. Its multi-phase dispute system automatically files claims for various deductions, including shortages, co-ops, discounts, and price claims. This automation directly addresses the inefficiency of manual recovery, where individual claims make the effort economically unviable for brands.

As a result, CommerceIQ customers using Profit Recovery Automation have achieved great success, such as:

• A gourmet food company automating hundreds of disputes and saving 75 hours
• Global beverage company identifying and recovering over $10 million of incorrect deductions

By meticulously comparing data like invoices and purchase orders against Amazon's deductions, and even leveraging Amazon's "overages" data, CommerceIQ increases dispute success rates, often 90%+ for co-ops and 50%+ for shortages.

Brands gain real-time visibility into dispute statuses and reasons for rejections. This also helps identify root causes, preventing future losses and ensuring continuous operational improvement within the larger Amazon Copilot solution.

One of the biggest advantages of profit recovery, according to our product experts, is its “set it and forget it” automation. Once configured, it requires no ongoing manual actions, yet continues to deliver value through streamlined processes and timely insights.

With features like biweekly summary emails and up-to-date reporting, teams can stay informed without needing to constantly monitor performance. Best of all, our tool often pays for itself quickly, with many organizations seeing measurable returns within just a few months.

Don't let manual, time-consuming dispute processes erode your Amazon profitability or distract your teams. CommerceIQ's Profit Recovery Automation delivers automated revenue recovery, significant time savings, and data-driven insights to not only reclaim lost funds but also to foster operational excellence.

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Ready to unlock your brand's full profit potential? Request a customized profit recovery review and demo today to see your specific recovery opportunities.