For SMBs selling on Amazon, adhering to Amazon’s guidelines is crucial to avoid costly fines. Even when Amazon picks up the freight (through programs like Amazon Partnered Carrier or Fulfillment by Amazon (FBA)), SMBs are still responsible for shipping readiness, labeling, packaging, and inventory accuracy. Mistakes in these areas can quickly lead to compliance chargebacks, affecting both profitability and performance.
NexaFlux helps SMBs navigate these challenges by providing targeted strategies that boost operational performance and reduce fines. By leveraging data, we implement long-term solutions that ensure SMBs are meeting Amazon’s operational standards.
Here’s how NexaFlux can help SMBs reduce Amazon compliance fines when Amazon picks up the freight.
Streamlining Shipment Scheduling and Preparation
Amazon’s On-Time In-Full (OTIF) penalties can range from 3% to 10% of the cost of goods sold (COGS). Even if Amazon picks up the freight, businesses must ensure their shipments are prepared and compliant to mitigate these charges.
How NexaFlux Helps:
- Shipment Readiness Audits: We assess your current processes to identify bottlenecks and delays, ensuring your shipments are always ready on time.
- Proactive Solutions: NexaFlux designs better preparation processes, making sure every shipment meets Amazon’s schedules and requirements.
Result: By maintaining timely and compliant shipments, SMBs can prevent OTIF penalties.
Ensuring Accurate Labeling and Packaging
Improper labeling and packaging are common causes of compliance fines, including chargebacks due to incorrect SKUs, damaged goods, or items rejected by Amazon Fulfillment Centers.
How NexaFlux Helps:
- Labeling and Packaging Reviews: We pinpoint errors in your labeling and packaging processes that lead to fines and recommend improvements.
- Improvement Strategies: NexaFlux ensures your labeling and packaging meet Amazon’s standards, reducing the risk of damaged goods and incorrect labeling.
Result: SMBs avoid fines for labeling errors and packaging issues, minimizing product damage and maintaining operational efficiency.
Monitoring Inventory Accuracy
Amazon penalizes businesses when inventory data doesn’t match actual shipments, leading to ASN Accuracy Fines or Carton Content Accuracy Fines. Accurate reporting is key to avoiding these penalties.
How NexaFlux Can Help:
- Inventory Audits: We review and reconcile your inventory data with your shipments, ensuring alignment.
- Preventative Measures: NexaFlux implements strategies to improve your data accuracy and avoid future mismatches.
Result: By maintaining accurate inventory reporting, SMBs reduce fines and improve order fulfillment efficiency.
Managing Freight Chargebacks
Missed pickups, incorrect shipments, and inaccurate product information can result in chargebacks that add up quickly if left unchecked.
How NexaFlux Can Help:
- Chargeback Data Analysis: We analyze your chargeback history, identifying patterns and root causes that lead to penalties.
- Preventive Strategies: Based on the analysis, NexaFlux develops strategies to improve shipment accuracy, timeliness, and compliance, reducing future chargebacks.
Result: SMBs minimize reoccurring chargebacks and ensure smoother operations.
Developing Tailored Compliance Strategies
Beyond solving immediate compliance issues, NexaFlux helps SMBs establish long-term strategies that keep their business compliant with Amazon’s evolving requirements.
How NexaFlux Helps:
- Custom Strategy Development: We create strategies tailored to your specific challenges, achieving adherence to Amazon’s protocols.
- Ongoing Support: NexaFlux offers fractional supply chain services, providing continuous support and guidance to help SMBs adapt to new Amazon requirements as they arise.
Result: SMBs benefit from a sustained compliance strategy, reducing fines and maintaining a seamless operation.
How NexaFlux Can Help You Minimize Amazon Compliance Fines
At NexaFlux, we offer data-driven strategies to help SMBs reduce Amazon compliance fines and streamline logistics operations. By addressing the root causes of non-compliance and implementing long-term solutions, we ensure businesses avoid costly penalties, even when Amazon picks up the freight. Through our fractional supply chain services, NexaFlux provides ongoing support to help you stay compliant with Amazon’s guidelines and improve overall logistics performance.
Ready to Take Control of Your Supply Chain?
Contact NexaFlux today to schedule a consultation and learn how we can help you minimize fines and optimize your logistics by refining processes.