How to do Payment Reconciliation for Amazon?

Several ecommerce sellers face challenges while filing for reconciliation on amazon due to its complexity. They simply file this under sales in accounting software. People who are experienced know this is wrong or realize that they need more info about their business to manually apply for reconciliation. Since the process is quite complex and has a lot of parameters involved some usually give up.

Today you will get step by step guidelines on how you can do payment reconciliation for amazon.

Almost every two weeks Amazon pays their respective sellers for the sales they have made. Since these payments come in net the actual revenue is less than you have received. There are several deductions in terms of rebates, refunds, FBA fees, Advertising fees, monthly subscriptions, sales tax facilitator fees, unavailable balances etc.

About Amazon’s seller reconciliation

Amazon is considered as one of the e commerce giants in the world. The problem which most sellers face on this platform is its returns and reimbursements scheme. Amazon notifies the seller about the refund after the whole process is complete. Also amazon gives a customer about 45 days to return the product.

Since it takes this much time to complete the process the seller usually doesn't even get the notification upon receiving the payment. This similar issue is faced when the product is turned out to be damaged as supplied by the warehouse. The challenging part is the seller is not able to figure out that the reconciling product has been returned against the amount or not.

As the process of claiming reconciliation is tiresome and takes a huge chunk of time from any promotion of sales. A seller is only able to recover 3% to 4% on a monthly basis. Since there is a high volume of sales happening on a daily basis. Thus, it can be beneficial to check the status of the reimbursement every now and then.

Understanding the process of reimbursement for damaged product

• First and foremost go to "Amazon seller report"> "Fulfilment by Amazon"> "Inventory adjustments".

• The data shown on the screen will do go back 18 months and should be downloadable

• The downloaded report will show the fulfilment network stock keeping unit and the number of quantities involved

• From there the seller has the option to either send the whole file or select the only items which needs to be reimbursed

Instruction to check lost inventory

It is a basic check to see whether the lists of the missing items and found are a match or not. During the comparison there are more items missing than found, there you can highlight the row and revert it to amazon.

How you can claim items that are refunded but not returned

There are some situations when amazon loses track of the product returned by the customer. Though the customer gets his refund but Amazon usually neglects to pay back the sellers. Even after 45 days, it looks like no action has been taken and certain discrepancies arise regarding the reimbursement of the specific product. So in case the amazon seller is using any management software like eVanik he will get the notification in case any refund is pending.

Steps for claiming lost items in the transit

In these situations FBA shipment is the last place which must be checked. The column of shipped and received sections must match every time and must show the status of closed. The mismatch of this part implies that a product is missing. From there the seller can use the reconcile tab to find the same item after 10 days.

It is also important to keep the invoices for reimbursement just in case the numbers are showing some level of inconsistencies. Later it's up to the seller, whether he wants to raise an issue and open up an investigation in the matter.

However there are several tools like eVanik that can help the ecommerce sellers to automate all their business processes in a fast and efficient manner. eVanik can simplify the process of reconciliation or reimbursement with the available data and save a lot of time and money. This would enable a person to let go of all the worries and solely focus on the part where he can actually grow his business both online and offline.

Conclusion

By now you might have understood the problem that most sellers face on amazon while reporting for reconciliation. However this problem can be easily resolved with the help of software management tools that not only take care of this problem but also have other issues regarding accounting, inventory, order processing etc.

So when it comes to scaling your business you must consider this as an investment rather than considering a recurring expenditure.

Every eCommerce seller is on a constant lookout for an opportunity to save time and money. There are several moving parts when it comes to eCommerce business like accounting, reconciliation, order processing, product returns, etc.