DimeTyd Analysis Reveals 63% of Deductions Incurred by Amazon Vendor is due to Accounting & Supply Chain Complexities
DALLAS, Sept. 22, 2022 /PRNewswire/ -- DimeTyd, a fully automated FinOps platform for 1P Amazon Vendors, which offers seamless recuperation of profit leakage based on complex accounting errors, reveals that the complexity of Amazon's accounting practices accounts for 63% of all Amazon deductions, according to its recent analysis across varied customer segments. DimeTyd's research analyzed data from 70 diverse Amazon vendors totaling over $5B in net shipment annually—vendor range from $500K to $1B—in net shipment.
"Our findings show there is significant opportunity for vendors to decrease profit leakage through more advanced finance and operations technology," said Rohan Thambrahalli, founder and CEO of DimeTyd. "As e-commerce vendors conduct business through Amazon, they have a unique opportunity to define their brand and drive revenue. Yet, Amazon's accounting is complex, and vendor accounting teams face millions of data points requiring precise processing and classification to fully reconcile their transactions with precision."
DimeTyd's technology is the first automated solution designed for Amazon vendors to manage voluminous transactions and align with the marketplace's layered and complex accounting system. The platform audits lost revenues dating back up to three to five years and processes millions of data points to recoup funds to vendors seamlessly. Once audited and reconciled, DimeTyd makes course corrections on recurring issues, enabling vendors to maximize all future profitability in the marketplace.
DimeTyd's platform allows businesses to simplify multiple information streams, identify return discrepancies, and automatically reconcile accounting errors. These tools eliminate duplicate financial reports, correct deduction overages, and resolve billing disputes.
DimeTyd has customers of all sizes and classifications—from small to multi-billion dollar corporations. Combined, these customers average approximately $2M in monthly revenue. Other studies from DimeTyd have shown that up to 90% of deductions are out of a vendor's line of sight, remain undetected, and are missed opportunities.
DimeTyd's findings align with recent research from a top e-commerce analyst firm. The Cleveland Research Center (CRC) released a study in December of 2021 citing that 93% of online vendors receive supply chain-related chargebacks while conducting business on the Amazon platform. Additional fees that deteriorate vendor profitability originate from issues related to shipping notices, purchase orders, and transportation.
"Even our largest vendors are unlikely to have the in-house capacity to manually process the large quantity of complex data encompassing numerous free-flowing transactions within the Amazon platform," continued Rohan. "Automation and advanced reconciliation are increasingly central to optimizing profits as the marketplace continues to become the go-to source for all types of consumers and B2B buyers."
Headquartered in Dallas, Texas, DimeTyd's vision is to empower a fair, accountable, and transparent accounting for the world of e-commerce.
For more information, www.DimeTyd.com or follow us at @DimeTyd.
DimeTyd is a fully automated FinOps platform for 1P Amazon Vendors offering seamless recuperation of profit leakage based on complex accounting errors. DimeTyd's technology is the first automated solution designed for Amazon vendors to manage high volumes of transactions and align with the marketplace's layered and complex accounting system. The platform audits lost revenues dating back up to three to five years and processes millions of data points to recoup funds to vendors seamlessly. Once audited and reconciled, DimeTyd makes course corrections on recurring issues, enabling vendors to maximize all future profitability in the marketplace.
SOURCE DimeTyd
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