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Getting Started with Deductions for Amazon
Understanding Amazon Deductions Dashboard Metrics
Understanding Amazon Deductions Dashboard Metrics

Use this comprehensive guide to learn best practices on how to interpret data from the Amazon Deductions dashboard page.

Achraf Hamidi avatar
Written by Achraf Hamidi
Updated over a week ago

The dashboard page is a powerful tool to use in order to prioritize your action items as well as identify patterns in your deduction data that can help you uncover bigger underlying issues. The list below explains what each metric means and how it can be interpreted.

  • Deductions Management Health Metrics: information regarding the 6 metric groups under this category can be found here.

  • Deductions Breakdown:

    • Deductions at due date: measures the total amount of dollars withheld by Amazon from all invoices at their payment due dates. In other words, if invoice #1234 was for $100 and Amazon only paid $70 at the due date, then the "deduction at due date" for that invoice is $30. This metric allows you to estimate the impact of these Amazon deductions on your cash-flow. Ideally, you do not want this value to be greater than 10% of the total invoiced.

    • Remaining deductions: represents the sum of deduction dollars that are still recoverable with Amazon either through disputing or settlement case creation.

    • Actively Recovered: is the sum of deduction dollars reversed through disputing and settlement.

    • Total Recovered: is the sum of the deduction dollars reversed through disputing and settlement (actively), as well as dollars reversed via Amazon Smart Match (passively). Please note that while Smart Match allows Amazon to reverse shortage dollars automatically, this does not mean that it is resolving the original shortage. A Smart Match reversal of a shortage on an older invoice can often result in the creation of a new shortage on a more recent invoice.

    • Dispute Win rate: measures the success rate of your disputes and is represented as the ratio of your approved dollars to your total disputed dollars. The overall win rate covers all dispute types, while the optimal win rate is limited to disputed shortages within the optimal time window.

      • It is possible to have your overall win rate be greater than your optimal win rate. This is usually due to the impact of price claim disputes with high approval rates.

  • Deductions by Status:

    • Not Disputed: represents the sum of deduction dollars that can currently be disputed.

    • Amazon Action: represents the sum of disputed deduction dollars that Amazon is currently reviewing.

    • Approved: is the sum of all dollars approved via disputing.

    • Denied: is the sum of all dollars denied via disputing.

    • Canceled: represents the total amount of deduction dollars that Amazon canceled and deemed unrecoverable.

    • Open Items: represents the sum of shortage dollars that can currently be redisputed via settlement case creation.

    • In Settlement: is the sum of deduction dollars of shortages that were confirmed to be redisputed via settlement.

    • Settled: is the sum of dollars paid back from shortages that were redisputed through settlement case creation.

    • Will Not Dispute: represents the total deduction dollars you chose not to dispute (i.e., archive)

  • Invoice Payment Breakdown: represents the total dollars paid invoice month over the past 12 months, bucketed into:

    • Initial Invoice Payments: the total dollars paid at (or before) the due date on each invoice.

    • Dispute: is the sum of deduction dollars recovered via disputing.

    • Settlement: is the sum of deduction dollars paid back through settlement redisputing.

    • Smart Match & Other: is the sum of dollars reversed on shortages via Amazon Smart Match.

  • Deductions by Type: a table showing the total count of shortages and price claims received from Amazon, as well as the total deduction amount (initial and remaining) from each deduction type. A small spread between the initial and remaining amounts may infer a high validity rate of the deduction type, while a larger spread between the two values can be interpreted as a low validity rate, with the deduction type being caused by poor receiving practices from Amazon's end or amendable labeling, cataloging and/or EDI practices from yours.

  • Deductions by Line Item: this is a table similar to the one previously mentionedt This table allows you to view the rate at which each of your products is receiving deductions as well as whether those deductions are being reversed or not. You should use this data along with your understanding of the sales on each product to identify any products that are receiving disproportionate amounts of deductions.

  • Deductions by Payee Code: works in a similar fashion to the previous tables.

  • Deductions by Location: while this table is very similar to the rest of the other tables on the dashboard, its use case is different. Similar to the "Deductions by Line Item" table, which helps you identify problematic ASINs, this table allows you to pinpoint any problematic Fulfillment Centers.

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