Amazon settlement describes the process by which suppliers negotiate settlements on remaining invalid shortage amounts that had been denied fully or partially during the initial round of disputing. Depending on available proof, deduction validity, and negotiation skills, suppliers can recover an additional 50-90% of the remaining dollars. The following article provides a step-by-step guide to creating a settlement case using our Deductions Navigator solution.
Best Practices & FAQs
Can I submit a settlement case on a single shortage claim?
While it is possible to re-dispute a single shortage claim, we recommend creating a single settlement case for a group of denied and partially denied (a.k.a. partially approved) shortage claims. Creating multiple cases instead of one case with multiple claims will usually require the Amazon support team to consolidate all cases of the same type, delaying settlement resolution.
However, we strongly recommend that outlier shortages, usually those exceeding $5,000, should be redisputed individually (i.e., creating a unique case for them specifically). These cases typically demand special attention and a heightened level of due diligence from both the vendor and Amazon's side. Such significant discrepancies often signal potential underlying issues, such as miscommunications, shipping errors, or even more severe concerns like fraud. By addressing these cases individually, you can ensure a more thorough investigation, pinpointing the root causes of these shortages and taking appropriate actions to prevent their recurrence. Common causes for these outlier shortage claims are overbilling (invoiced quantity > accepted quantity), misreceiving of products, and ASN or other shipping problems.
How often should I create new shortage settlement cases with Amazon?
Depending on the volume of your settleable shortages, we recommend creating settlement cases quarterly or bi-annually with one or two quarters as a buffer period. In other words, if you opt for a quarterly settlement cadence and are at the end of Q1 2023, we recommend creating a single case for all remaining shortages on invoices dated from the end of Q4 2022 (12/31/2022) and back. This recommendation gives Amazon time to reverse the more recent invoices through their Smart Match process, which is a common occurrence.
What can I do to negotiate a settlement as productively as possible?
While proof documentation might not be important during the first round of disputing shortages, it does play a more important role during settlement. Our downloadable settlement spreadsheet will always contain secure links to all corresponding proof documentation for each shortage claim in a settlement. Therefore, you should expect quicker turnaround time and greater settlement offers by ensuring all relevant proof is attached to the claims before beginning the re-disputing process with Amazon.
How do I keep track of settlement payments in Deductions Navigator?
When you confirm the submission of a settlement case on a specific set of deductions, those shortage claims will move to the "In Progress" tab, and the status will be "In Settlement." Once payments are made on any shortage with "In Settlement" status, that deduction will then move to the "Archived" tab, and the status will change to "Settled." Amazon considers all payments made after the settlement case creation date for a given set of claims to be "settlement payments" and will include those in the final settlement resolution spreadsheet. The Amazon support team will share the spreadsheet with you before closing the case.
Create a Settlement Case on Vendor Central
Create a Settlement Case on Vendor Central
Settlement data is stored on an account basis, meaning only the Vendor Central account from which a case is created will have access to that data. This section is for users who might value more privacy regarding their negotiation with Amazon and access to historical settlement data and communications in Vendor Central rather than through Deductions Navigator - Amazon. To create a settlement following this method:
In the Deductions Navigator, go to the Deductions page and open the "Open Items" tab.
Select any number/combination of settleable deductions you want to include in your case.
Click on Download Settlement Files > Settlement Spreadsheet.
A question will appear at the top of the list view, asking, "Did you submit the selected for settlement?".
!! Do not click "Confirm" until step 12 below. This action will change the status of all selected deductions to "In Settlement" and move them to the "In Progress" tab. If you choose to cancel, the Open Items list will return to its original state.
Once the spreadsheet is downloaded, go to the Vendor Central Contact Us page
Select the appropriate business group (if applicable).
Under "What can we help you with?" click Payments > Shortage Claim (SC) / Pay-on-Receipt (POR).
Scroll down and click on "Still need help?" > Send an email.
Make sure you selected the correct business group and issue type.
Fill out the form:
Subject: Settlement of Invalid Shortages on Invoices dating from [earliest date] to [latest date].
Shortage Dispute ID: Either state "Multiple" or list the different DisputeIDs in the spreadsheet separated by a space or comma.
Contact Phone Number: Enter a phone number Amazon can use to contact you with any questions.
Describe your issue:
Greetings,
I hope this email finds you well. I am creating this case to bring your attention to the shortages listed in the attached spreadsheet, which represent invalid shortages that our company has yet to receive payment on. These shortages are on invoices dating from [earliest date] to [latest date], and the attached spreadsheet contains each shortage's corresponding DisputeID, original invoice #, invoice date, open shortage amount, PO number(s), and links to corresponding proof documentation proving each shortage's invalidity.
Please let me know if there is anything else I can do to speed things up on your end. Thank you in advance for your assistance with this case."
Thank you!
[First and Last Name] and the [Company Name] teamAttachments: Make sure to attach the spreadsheet downloaded from step 3.
Include Additional Email Addresses: Include any email addresses of personnel you'd like to be updated regarding the settlement status (e.g., <companyname>.amzn@partners.supplypike.com)
Review the details and click Submit.
Once you've successfully submitted the case on Vendor Central, please confirm the submission on the Open Items tab in the Deductions Navigator.
Create a Settlement Case with Your Vendor Manager
Create a Settlement Case with Your Vendor Manager
Some users may have access to an Amazon Vendor Manager (a.k.a Amazon concierge) through Amazon's Strategic Accounts Services (SAS) program. If your Vendor Manager handles the shortage claim settlement for you, we can help with the process. We can provide you with the data Amazon requires to process your settlement case and all the necessary historical proof needed to negotiate the settlement successfully. If you have a Vendor Manager that handles your shortage claim cases, please create the settlement following the steps below:
In the Deductions Navigator, go to the Deductions page and open the "Open Items" tab.
Select any number/combination of settleable deductions you want to include in your case.
Click on Download Settlement Files > Settlement Spreadsheet.
A question will appear at the top of the list view, asking, "Did you submit the selected for settlement?".
!! Do not click "Confirm" until step 6 below. This action will change the status of all selected deductions to "In Settlement" and move them to the "In Progress" tab. If you choose to cancel, the Open Items list will return to its original state.
Once the spreadsheet is downloaded, you can then contact (email) your Vendor Manager with the downloaded list.
Please remember to confirm the submission of the data/creation of the case in Deductions Navigator's Open Items tab. The question and the option to click "Confirm" will remain under the Open Items tab until you either confirm or cancel, so it is ok to wait until you receive confirmation from your Vendor Manager before confirming.
Create a Settlement Case in Deductions Navigator
Create a Settlement Case in Deductions Navigator
If you're not emailing your Vendor Manager with your settlement data, this method is the fastest and most streamlined method. To create a settlement through our app:
In the Deductions Navigator, go to the Deductions page and open the "Open Items" tab.
Select any number/combination of settleable deductions you want to include in your case.
Click on Create Case.
A Case Form will be opened and will have the following field automatically prefilled:
Issue Type
Subject
DisputeIDs
Issue Description
Attachments
In order to submit your case, you will also need to fill out the remaining fields:
Select a Business Group (if applicable)
Enter a valid contact phone number
We also recommend adding your own email address under "Add Additional Email Addresses" to receive email notifications regarding your case.
Once all required fields have been filled out, please review your case and click Submit to officially create a settlement case with Amazon. To make sure your case went through successfully, feel free to reload the page to go to the case log page to view and track updates to the cases you create.
Once a case has been created, you can go to Case Log to open it, submit replies to Amazon, as well as Close cases, and re-open ones that can be reopened.
NOTE: In some situations, Amazon may reply to your case and inform you that they are choosing to close it and open another case in its place. When this happens, the case status will show as "Pending Merchant Action," and you will be required to reply to confirm it and keep it open. It is a good practice to add additional email addresses at this time so you will continue to receive notifications when there are case updates.