Free eBook: Top 5 Actions to Take to Reduce Chargebacks in 2021By: Pasquale Gatti | January 13th, 2021
Are you ready for an eye-opening revelation?
Believe it or not, 2% of manufacturers’ and distributors’ top line revenue goes to pay chargebacks from retailers.
Now, that may not seem like a lot on the surface, but for a company that pulls in $10 million a year, that’s a whopping $200K being paid out to cover chargebacks. Surely that kind of leakage is affecting your profits?
As supply chain data management and EDI become more commonplace and more refined, retailers are better positioned to penalize non compliant suppliers and often rely on fully automated processes to issue chargebacks. If you aren’t using equally automated supply chain systems, you’re simply not competing on a level playing field.
Chargebacks can result from late, inaccurate, or unreadable advance ship notices (ASNs). Retailers rely on ASNs to accurately plan their receiving and maintain inventory levels. Therefore, missing, inaccurate, or invalid ASNs can negatively impact their own revenue, and they don’t shy away from holding you responsible. You can also encounter chargebacks for late or early deliveries, improper labeling, or not packing to retailer specifications among other factors.
But all hope is not lost. There are some very specific actions you can take today to begin reducing the number of chargebacks you’re seeing and create a more efficient supply chain.
For example, through our research and talking with customers over the years we’ve found that beginning with an internal audit and assigning resources is a good starting point. By looking inward you can analyze your supply chain to determine just how your top-line revenue is being impacted. Then you can figure out what internal resources you have to fight them (customer service team, sales, etc.).
But that’s just the beginning of your battle.
Are you ready to start reducing chargebacks and protect your profits? Download our free eBook, “Top 5 Actions to Take to Reduce Chargebacks in Your Vendor Compliance Program now and take the first step towards becoming chargeback-free!
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