Days are counting into 2018, and financial pressure keeps building on retailers who now want to get every order and shipment they place completed correctly. Thus, to stay safe, and have suppliers on their toes, retailers are now turning to chargebacks.
A chargeback, in this scenario, is the fee a retailer would charge a supplier in the event of an error that arises from the failure to adhere to business guidelines. Chargebacks are an approach retailers use to counterbalance any extra expenses they incur if suppliers do not comply with the terms.
This means a retailer has the right to press some fees on you for delayed shipments, wrong labeling, incorrect bills or void ASNs plus many other small-looking errors that may cost you dearly. The trend is becoming a goldmine for the retailer with some admitting that chargeback related fines form 13 percent of the total revenue they hold in their business accounts.
In contrast, suppliers are suffering losses amid the challenge of meeting vendor compliance rules while also dealing with several customers. So to avoid unwanted fees and better your bottom line, here are a few tips a supplier should follow, but first, they may need to find a chargeback insurance provider.
1-Find out the cost- know the cost of a chargeback and get to the finer details to assess its true impact.
2-Keep the details- put systems in place to store all data needed to help spot loopholes that could lead to chargebacks such as; missing, wrong or invalid labels on shipments, time and reason a client disputes.
3-Assess overall chargeback trends- find tools that can evaluate and review your chargeback trends on a wider screen to give a clearer picture of the effectiveness of your protective measures and redundant patterns you might have missed.
4-Know what your retailer needs- treat every retailer differently because they are, and all have specific requirements.
5-Reexamine retailer requirements– be sure to recheck retailer needs every year to keep chargebacks low. Some fail to inform their suppliers when their wants change.
6-Refute invalid chargebacks- install resources to gather all the information you need to win against false chargebacks.
All the above are easier done when everything is automated. Manual systems are slower and undependable.
Electronic Payment expert, Blair Thomas, co-founded eMerchantBroker in 2010. His passions include writing/producing music and travel. eMerchantBroker is America’s No.1 chargeback insurance provider serving both traditional and high-risk merchants.