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SupplyPike Guide to Re-Disputing Shortage Claims and Settlement Cases with Amazon

This article provides a step-by-step guide to submitting re-disputes and settlement cases for Amazon shortage deductions using SupplyPike

Achraf Hamidi avatar
Written by Achraf Hamidi
Updated yesterday

Overview

Once shortage claim disputes are resolved, any remaining shortages can be re-disputed once more with Amazon. This re-disputing process allows Amazon to review each shortage individually and in greater detail.

For many vendors, the re-dispute process is the last chance at recovering any deductions with Amazon, however, in some cases any remaining denied shortages can be escalated through a settlement case. For some suppliers, once the re-dispute step is completed, Amazon settlements allow them to negotiate the recovery of shortage amounts that have been fully or partially denied during the initial dispute and re-dispute processes. Depending on available proof, deduction validity, and negotiation skills, suppliers may recover an additional 50–90% of the remaining disputed funds.

This article provides a step-by-step guide to creating re-disputes and settlement cases using the SupplyPike App.

Best Practices & FAQs

  • Can I re-dispute previously settled claims?

    No, once a claim has been settled, Amazon will not allow it to be re-disputed. Even though re-disputes can technically be submitted for previously settled claims, Amazon will promptly deny them since a settlement has already been issued.

  • What is the recommended process for re-disputing and settlement?

    While the re-dispute step is the final attempt for most suppliers, it is generally recommended that all shortage claims go through the re-dispute process before any settlement cases can be created. At SupplyPike, we recommend the following best practices:

    • Start by re-disputing the oldest claims under your "Follow Up" tab, especially ones that are expiring soon (about to reach the 2 year mark).

    • Limit the number of weekly re-disputes to no more than 50 at a time to maximize your recovery potential.

    • Once the re-dispute process for a given period is completed, you can only consider opening a settlement in either of the two cases below:

      • You have a Vendor Manager you can email directly regarding the creation of a settlement case.

      • Amazon's GSP team reached out to you with a "proactive settlement offer."

    • In either case, you can rely on us to provide you with the data and documentation needed as well as guide you throughout the negotiation process.

    Following this workflow ensures that vendors take advantage of all opportunities Amazon provides for recovery.

  • How long will the re-disputes process usually take?

    The time required for re-disputes varies based on volume. However, Amazon typically resolves shortage re-disputes within 1 to 4 weeks from the re-dispute submission date.

  • How often should I create new shortage settlement cases with Amazon?

    If you have an Amazon vendor manager you can contact directly, then the frequency of settlement case submissions depends on the volume of settleable shortages. We recommend creating settlement cases once every 1 to 2 years while maintaining a buffer period of one to two quarters.

    For example, if you choose an annual settlement schedule and are at the end of Q1 2024, we recommend creating a settlement case for all remaining shortages on invoices dated before Q4 2023 (12/31/2023 and earlier).

    This approach ensures that Amazon has enough time to resolve recent invoices through both the re-dispute process and the Smart Match system before settlement.

  • What can I do to negotiate a settlement as productively as possible?

    While proof documentation may not be required in the initial shortage dispute, it becomes increasingly important during the settlement phase. To maximize settlement recovery, follow these best practices:

    • Ensure all relevant proof documentation is attached to the claims before initiating the re-dispute process.

    • Use our downloadable settlement spreadsheet, which contains secure links to proof documentation for each shortage claim.

    • Providing comprehensive proof upfront gives you better ground to stand on during the negotiations, helps expedite Amazon’s review process, and increases the likelihood of receiving a higher settlement offer.

  • How do I keep track of settlement payments in the SupplyPike Deductions app?

    Once you submit a settlement case for a specific set of deductions:

    1. The shortage claims will move to the "In Progress" tab, with the status marked as "In Settlement."

    2. Once Amazon processes a payment for any claim under "In Settlement", the deduction will move to the "Resolved" tab, and the status will change to "Settled."

    3. Amazon considers all payments made after the settlement case submission date as "settlement payments" and includes them in the final settlement resolution spreadsheet.

    4. Amazon’s support team will usually provide this spreadsheet before officially closing the case.

Create a Shortage Claim Re-Dispute

To create shortage claim re-disputes, please follow the steps below:

  1. In the SupplyPike Deductions app, go to the Deductions page and open the "Follow Up" tab.

  2. Select up to 30 shortages tagged as "Eligible for Re-Dispute" (we recommend prioritizing older claims with higher dollar amounts).

  3. Click on the "Bulk Actions" dropdown button.

  4. Then click the "Re-dispute" button.

To check on re-disputed shortages, please follow these steps:

  1. Go to the Deductions page and open either one of the following tabs:

    1. Follow Up: this tab will host re-disputable shortages, which will be tagged as "Eligible for Re-Dispute" and ones with denied or partially approved re-disputes which will be tagged as "Eligible for Settlement".

    2. In Progress: this tab will host disputes, re-disputes and settlements that are under review.

    3. Resolved: the tab will host any disputes, re-disputes or settlements that have been resolved and fully approved or finalized (denied via settlement).

    4. All: this tab will host all claims.

  2. Under either one of these tabs, you can use the Dispute Count filter to find out which claims are undisputed, disputed or re-disputed. Simply click on the "More" filter, then select the appropriate count of disputes:

    1. 0: will result in claims that have not been disputed yet.

    2. 1: will result in claims that have had 1 dispute only.

    3. 2: will result in claims that have been disputed and re-disputed.

Create a Settlement Case with you GSP or your Vendor Manager

Whether the GSP team has reached out to your team with a "proactive settlement" offer or you are initiating the process by contacting you vendor manager, you can always use our app to determine the size of the opportunity you are negotiating with Amazon. Our team of experts can provide guidance and advice throughout the process but our solution will also provide you with the relaible data you need to get the process started. In order to download the settlement data, follow the steps below:

  1. In the SupplyPike Deductions app, go to the Deductions page and open the "Follow Up" tab.

  2. Select any number/combination of settleable deductions you want to include in your case.

  3. Click on Bulk Actions > Download Settlement Files.

  4. The data on the "Follow Up" tab will then freeze until you take either of the two actions:

    1. Click "Cancel" if you haven't submitted the data to Amazon, and restart the process once you want to begin the process.

    2. Click "I already created a case" if you had sent the settlement document to the relevant Amazon party (vendor manager or GSP team) so we can begin tracking repayments on those claims.

    3. NOTE: Settlement creation through Vendor Central has, for the time being, been discontinued.

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