Over the course of the last decade, e-commerce sales grew a staggering 313% in the United States – significantly outpacing retail sales growth overall, which grew 42% – indicating a significant evolution in consumer shopping behavior. In the year 2020, as the pandemic took hold in our nation, this number skyrocketed, and the retail industry will continue to see its lasting impact in the continued growth of e-commerce. Given this evolution in consumer behavior, sellers have begun strongly investing in e-commerce and developing robust strategies to maximize revenue.
For many sellers, Amazon famously maintains its lion’s share in generated revenue, but with the rising costs associated with conducting business as an Amazon seller, retailers have not only begun to question its value, but how to recoup their losses.
One of the primary reasons for this decline in profit margins comes from the growing number of invoice shortages and monthly chargebacks dealt to suppliers from Amazon. These bottom-line profit hits greatly impact retailers, making it increasingly difficult to operate within the margins needed to reinvest in their brands across e-commerce platforms. And unfortunately, these changes aren’t unique to Amazon. Walmart, Target, The Home Depot, and others have begun to follow suit, dealing heavier fines and fees than before. In fact, in our client base alone, retailers have seen hits up to 25% of their COGS, largely due to chargebacks and shortages.
While major retailers like Amazon and Walmart have dispute processes to recover these losses, the majority of sellers find the process confusing, tedious, and labor intensive. With our Cashback Recovery program, a scalable software that enables the Legacy team to automate and optimize the recovery process, retailers have a solution that not only recoups valued dollars, but valued time. In addition, we deliver a root cause analysis that serves to lower, or eliminate, losses from future fines and fees that retailers may be experiencing due to issues such as guideline non-compliance. So while chargebacks and invoice deductions may continue to evolve as a growing challenge within the industry, there are solutions available to recoup lost profits and add bottom line dollars to your P&L’s. After all, as we say here at Legacy Retail, what you keep is just as important as what you make.
Learn more about our Cashback Recovery program or contact Legacy Retail today to start recouping your losses and maximizing your revenue.
