Handling FBA Errors in the Fashion Industry
If one thing’s for sure, it’s this: the fashion industry has never been more digital than it is today. It doesn’t really come as a surprise if you think about it. The digital transformation – after affecting the “usual suspects” like financial services and media – has now been spilling over to sectors that offer physical products, such as retail and fashion. The question is: in what form is this happening and how can you and your online business make the most out of this momentum?
The first question is answered easily: The digitization of the fashion industry has led to more people shopping for clothes online than ever before. What started out as a necessity for some people, because all the brick and mortar stores closed due to the pandemic, has now become regularity.
As an Amazon seller, you constantly profit from this. Not only are you selling over the world’s largest platform and are therefore able to reach a ridiculous amount of potential customers, you are also able to benefit from all the processes and amenities the online giant offers its sellers. Selling over Amazon FBA being one of those.
What is Amazon FBA?
FBA stands for “Fulfillment by Amazon” and is basically an in-house fulfillment service for sellers. This means that you can book this service and Amazon will take over your logistics for you. The service includes
- warehousing of goods,
- compilation of orders,
- redistribution to another warehouse due to specific order demand,
- shipping,
- customer service in respective languages,
- as well as refund and return management.
All you have to do is send your products to an Amazon Fulfillment Center, and the online giant will take over from there.
Benefits of Selling Over Amazon FBA
There are several reasons why this business model is so popular. These are the most convincing ones.
You Have Less Things to Worry About
For one, Amazon sellers have a lot on their plates and are happy about tasks they can delegate into competent hands. This is the exact case here – who could be more qualified for the Amazon fulfillment process than the online giant themselves? Apart from the fulfillment process, the online company also takes over storage and customer service for you.
Amazon FBA will save you a lot of time. Time that you can now spend on other things, like working on your listing, researching new products … Or, you know, napping.
You Improve Your Seller Rating and Sales
As we mentioned, the online company takes over delivery and customer service for you. On-time delivery and pristine customer service are factors that make you more attractive as a seller and are also reflected in your Amazon seller rating. If you sell over FBA, Amazon naturally gives your company the best rating for these two services, since they are the ones executing them. A great seller rating will also convince buyers that are on the fence about whether to buy from you or somebody else.
Drawbacks of Selling over Amazon FBA
We are not going to pretend that there are no negative sides to Amazon FBA. Here is what you have to take into consideration:
Amazon FBA Fees
Naturally, Amazon will charge you for their services. Whether this service is worth it for your business is a question you will have to decide for yourself. Click here to find out more about Amazon FBA fees.
Amazon FBA Errors
Like in every other sector, you have to take into account the margin for human error that is bound to happen in an Amazon warehouse. There are three main errors that occur regularly:
#1: The Item Gets Damaged and Is Unsellable
Items get damaged, that’s a fact. If the damage is so severe that the product can no longer be sold and Amazon disposes of the item. It is written off.
With all the hustle and bustle going on in the Amazon warehouses, it can happen that products are incorrectly disposed of. Here too, the item is written off and is no longer recorded in the Amazon FBA inventory. Naturally, claiming a reimbursement becomes more difficult if there is no record of the item in the inventory.
#2: An Item Is not Returned but the Customer Has Already Been Refunded
Sometimes buyers process a return of an item and the money is refunded to them before the product has even been returned. Amazon then proceeds to wait 45 days for the return. And after that … nothing happens.
Naturally, the seller should be reimbursed. However, this doesn’t happen as often as you might think. After an FBA error, the sellers often carry the loss on their own. Either because they didn’t bother to file the claim or because they didn’t identify the error altogether.
#3: FBA Fee Calculation Errors
Both the storage fees and the shipping fees for the FBA service are calculated based on the dimensions and weight of the stored items. If Amazon now uses incorrect dimensions as a basis for calculation, excessive FBA fees will be charged.
Depending on the number of items, sellers can lose several thousand euros a year.
Amazon FBA Errors in the Fashion Industry
Fashion is big on Amazon. Not only has the online giant become the number one online apparel retailer in the U.S, but they are also constantly working on ways to keep this sector on its toes. Whether they are nudging the super high-end fashion companies to sell over their new platform “luxury store”, or launching campaigns aimed to change the way you buy t-shirts online, Amazon is always looking for ways to stay one step ahead.
You can do the same for your online business on Amazon. The truth is, it is not unlikely that many of the errors we mentioned further above are bound to happen, especially when you sell fashion items on Amazon.
The reason for this is that fashion items are returned
very
often. In fact, return rates for the categories fashion and fine jewelry
are known to shoot up to 40%. A high return rate naturally means that you can easily lose track of all the merchandise going in and out of the Amazon warehouses. The more SKUs you have, the harder it becomes to keep track. The higher the chance that errors occur and you lose money.
What can you do in such a case? Once you have identified the error, you can file a claim for reimbursement. We would love to tell you that this process is easy and not time-consuming at all, but that is simply not the case.
Not only do you have to provide evidence of your losses, you also have to compare up to twelve different reports that have to be analyzed and linked to the transactions in question. Now take into account the amount of time until the FBA error is located, the specifications of the respective marketplace, different time zones, etc. All in all, the whole process tends to become more than confusing.
SellerLogic’s Lost & Found Solution
As you can imagine, making reimbursement claims is no fun and takes up a lot of time. That’s why we have developed a solution that automates this process in all the right places.
SellerLogic Lost & Found analyzes the data from the abovementioned up to twelve reports and identifies the FBA errors in them automatically. Each conspicuous transaction is created as a separate process. This can be done up to 18 months retroactively. The individual cases are prepared in a way that is easy to understand and stored as a copyable template. All you have to do is open the case in Seller Central, insert the text prepared by SellerLogic, and click “send”.
Our solution sees to it that your reimbursement claims are taken care of – and all you have to invest in is a minimal amount of effort. If there are any difficulties with one of your cases, our knowledgeable team can assist you in communicating with Amazon!
Final Thoughts
The fashion industry on Amazon has been gaining momentum rapidly since 2019 and it certainly doesn’t look like there is going to be a huge decline any time soon. At the end of the day, it’s a question of comfort. And, let’s face it, no company offers their customers more comfort than Amazon when it comes to shopping experiences.
All you have to do is be ready to satisfy that demand as a seller and have precautions in place for all the things that can go sideways in a fluctuating sector such as fashion. Luckily, there are many tools nowadays that can help you take care of tedious processes and enable you to focus on what’s important.
About SellerLogic: Our mission at SellerLogic is the development of new and intelligent solutions for Amazon Sellers. Our current products – the SellerLogic Repricer and Lost & Found – allow our customers to save time and increase productivity while generating maximum profit.
Our logos are on this page: https://www.sellerlogic.com/de/media-kit/
About the Author: After finishing his legal studies, Daniel started out as a copywriter in the field of competition law. The experience he drew from working so closely with marketing moved him to shift his career into a more creative direction, and he now specializes in content creation for software companies. When Daniel's not trying to figure out various SEO algorithms, you can find him working on his jump shot or on a new sushi recipe.

