Is Your Business Grappling With Frustrating Inventory Discrepancies at Amazon Warehouses?
For the last few months clients and friends across the Amazon Eco system have all been complaining about an increasing number of delivery discrepanices when Amazon are receiving their latest transfer. So, I have written this article to offer some advice.
Receiving many delivery discrepancies into an Amazon warehouse can be problematic, particularly if you’re participating in the Fulfilled by Amazon (FBA) program. These discrepancies can include issues like inventory mismatches, damaged goods, or mislabeled products arriving at Amazon’s fulfillment centers. Addressing these issues is crucial to maintaining operational efficiency and good standing with Amazon. Here’s a plan to identify and resolve these issues:
1. Identify Common Discrepancies
- Miscounts: More or fewer items are received than what was listed in the shipment.
- Damaged Goods: Items arrive at the warehouse damaged.
- Mislabels: UPCs or other labeling errors that cause Amazon to receive the wrong items.
2. Root Cause Analysis
- Review Shipping and Packing Processes: Evaluate how items are packed and labeled before being shipped to Amazon. Look for trends in errors related to specific products or shipments.
- Supplier and Manufacturer Checks: If items arrive damaged or incorrectly labeled from suppliers, review these relationships and quality control processes.
- Shipping Carrier Issues: Consider if damage may be happening during transit and if so, work with carriers to address these issues.
- Weights and sizes: Are the weights and sizes you have listed in Amazon still correct? Amazon can weigh in deliveries and conclude how many products are in a box without opening it. If you listed weight has changed this could be causing errors.
3. Implement Rigorous Quality Controls
- Improve Packing Standards: Ensure that all items are securely packed and labeled correctly according to Amazon’s requirements. Use sufficient protective packaging to prevent damage.
- Regular Audits: Conduct regular audits of your inventory before shipment to Amazon. Verify counts, condition, and labels.
- Enhanced Labeling and Scanning Processes: Ensure every item is labeled correctly and consider double-checking with a scanning process before shipping.
4. Training and Education
- Educate Your Team: Ensure that all staff involved in the preparation, packaging, and shipping of products are trained and aware of Amazon’s standards and the common discrepancies that arise.
- Continuous Improvement: Keep staff updated with any changes in Amazon’s requirements and provide regular feedback on the quality of outgoing shipments.
5. Utilize Technology
- Inventory Management Software: Implement or upgrade inventory management systems to improve accuracy in stock levels, packing, and shipping processes.
- Automated Scanning Solutions: Use barcode scanners to ensure accuracy in picking and packing processes.
6. Enhance Communication with Amazon
- Promptly Address Discrepancies: When discrepancies are identified by Amazon, address them immediately. Use the “Reconcile” option in your FBA dashboard to submit proof (like packing slips or photos) to challenge or correct discrepancies.
- Seek Feedback from Amazon: Regularly communicate with Amazon support to understand any recurring issues and get advice on best practices from Amazon’s perspective.
7. Review and Optimize Carrier Partnerships
- Evaluate Delivery Partners: Assess performance and reliability. If damages are a recurrent issue, consider switching carriers or renegotiating terms to include protective clauses or insurance that covers damages.
8. Document and Follow Up
- Keep Detailed Records: Document every batch sent to Amazon, including details like item counts, condition reports, and carrier used. This documentation can be invaluable in disputing discrepancies.
- Regular Review Meetings: Schedule regular review meetings to discuss discrepancies and assess the effectiveness of implemented changes.
- POD & POP: Amazon normally ask for POD – Proof of delivery reports and POP – Proof of purchase documentation. If you are a brand registered white label owner you do not have to prove purchase. A packing slip should be enough.
By addressing these elements systematically, you can significantly reduce the number of discrepancies in your Amazon shipments, leading to smoother operations, better profitability, and a stronger relationship with Amazon.
