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Copilot for Amazon

Household appliance brand short-circuits product shortages to recover over $2M from Amazon

September 19, 2024

Household appliance brand short-circuits product shortages to recover over $2M from Amazon case study hero image

Summary

Recurring Amazon shortages were costing a global appliance brand millions, and the brand couldn't see why. With CommerceIQ, the brand found the root cause, automated the disputes, and recovered $2.28M within 12 months, in phase one.

The challenge

Unexplained product shortages

The brand was experiencing shortages on Amazon because unknown pallet and carton category discrepancies were causing the platform to misclassify incoming orders.

Without visibility into the source of those shortages, the problem became recurrent, inexplicable and costly.

01

Inexplicable

No visibility into what was causing shortages

02

Recurrent

The same shortages kept coming back

03

Costly

Shortages were costing the brand millions

The solution

Disputing shortages with Profit Recovery Automation

Using CommerceIQ’s integrated retail ecommerce platform, the brand ran a root cause analysis on its recurring shortages. It found that its Autonomous System Number (ASN) formatting was inconsistent with pallet-level shipments, as the format was only acceptable for cartons.

Prior methods for disputing shortages couldn’t detect this problem. With Profit Recovery Automation in place, the brand could:

01

Automated disputes

Shortages were disputed after Amazon Smart Match with no manual input required.

02

One source of truth

Shortage claims, dispute approvals, resolution rates and more in one place

03

Root cause analysis

Recurring problems prevented at the source

Before

With CommerceIQ

Unknown cause

Pallet and carton discrepancies went undetected

Root cause found

ASN formatting didn’t fit pallet-level shipments

Prior dispute methods

Couldn’t detect the problem

Automated disputes

Filed after Amazon Smart Match, no manual input

Recurring shortages

Costing the brand millions

$2.28M recovered

In phase one of the dispute process alone

The results

Recovering millions from Amazon shortages

Within 12 months, the brand recovered $2.28M in profits in phase one of the dispute process alone. Disputes surged in the first two months of activation to catch older shortages, and the approval rate stayed high.

Performance results

$2.28M

Recovered in phase one

55.2%

Approval rate maintained

2,300+

Shortages disputed

Also improved

Automated recovery

Shortages disputed without manual input

Root cause clarity

ASN formatting issue identified

Repeat prevention

A fix for recurring shortage claims

Performance overview graph showing shortage disputes approved, count of shortage disputed, shortage dispute approval rate, and shortage disputes resolved.
A surge in shortages claimed, many of which were approved. The average resolution rate stayed high over time.

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