Deduction Cloud: What’s in it for suppliers?
Business / by Sreedhar Narahari / 34 views
If you’re a supplier working with retailers like Amazon, Walmart, Target, or Costco, you must understand how chargebacks work. Ignoring them will cost you—slowly but surely.
You might put in your best effort to fulfill an order. But then, out of nowhere, a deduction shows up. Sometimes days or even weeks later. If you’re lucky, it comes with a vague explanation.
What happens next? You scramble. You start digging through emails, documents, spreadsheets—anything that can help you dispute the charge.
But what if you didn’t have to do all that manually?
Imagine all these messy processes brought together in one place—in the cloud. That’s what Deductions Cloud is, a smart, scalable way to manage retail deductions.
So, what exactly is Deductions Cloud?
More importantly, why do you need it as a supplier?
Let’s break it down. One step at a time.
The Costly Epidemic of Retail Deduction
So, how shall we put it? Here’s some food for your thoughts:
Amazon alone issued $1 billion in chargebacks in 2023! Large retailers are notorious for issuing billions in deductions annually.
According to Nucleus Research, about 5-10% of your total invoice on average can be lost to deductions due to poor management.
Not surprisingly, most of these deductions are automated. They will be issued right away over system mismatches, EDI errors, issues in labelling, or shipping discrepancies.
According to a RetailWire survey, 70% of suppliers said they don’t have a clear view of what’s happening with their retail deductions — from when they’re taken to how they’re resolved.
What is Deductions Cloud?
Introducing your savior – Deductions Cloud. This is a software platform helping suppliers automate and centralise deduction management. You can connect it with your ERP systems, retailer portals (Amazon Vendor Central or Walmart Retail Link), logistics, or EDI platforms. To sum up, it is the base from which you deal with deduction chaos efficiently.
Here are some of its core capabilities:
It can automate the identification and capture of deductions
These deductions can be classified by reason codes
Collects and attaches required documents
Generates and submits the disputes
Tracks status and gives regular reports
Analyses the audit trails
The best part is, there will be no more mountains of spreadsheets and emails to conquer. Neither will manual downloads bog your team down.
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