If Amazon informs a vendor that they didn’t receive enough units as promised in their Purchase Order process, this is called the PQV Shortage Claim. Purchase Quantity Variance is known as PQV.
When the quantity received by Amazon differs from the quantity stated by the vendors in the ASN (advanced shipment notification), Amazon could file claims for shortages against the invoice.
Why do vendors get shortage claims?
Here are some of the reasons shortage will occur:
- Human negligence from the vendor side
Incorrect label or no label on the packages
Missing certain items while packing, incorrect case pack quantity
Errors made in updating pack sizes during catalog setup
- Error caused by Amazon
Among the most common reasons for this is the staff at Amazon may overlook details during the manual scanning of labels, resulting in differences.
If the shipment is found missing, Amazon will check upcoming orders for the same SKU and compare them to the missing SKUs from an older product order. Only when numerous matching efforts fail, do vendors receive a shortage message.
- An error occurred at courier side
Incomplete or delayed delivery
Shipping-related loss, damage
To repair the situation and avoid being penalized for lost income, it is essential to resolve shortage claims as quickly as possible.
How do I claim for Shortage Disputes?
- Shortage Disputes are visible under the invoice option in the payments section. A vendor can create a dispute by choosing the Review/dispute shortages option.
- The Review/dispute shortages option will redirect to the invoice page which displays the shortfalls from the previous month.
- The Actions button includes the related options to the invoice, like printing the invoice, viewing details, and “Dispute Shortage by ASIN”. On the next page, a vendor needs to enter the details of the invoice:
- Shipped Product – A product barcode, ASIN, EAN, UPC
- Shipped Date – The date when the shipment is delivered to Amazon.
- Dispute Quantity – Enter the quantity, the vendor was supposed to be delivered.
- Further, a vendor should add the dispute details and upload any additional documents such as ASINs, PODs from couriers, and other documents. In this process, a dispute can be raised only once at Amazon, hence make sure to fill out all of the information completely and properly.
It is recommended to raise a Shortage Claim after 30 days from the time of the Shortage Claims notification from Amazon because Amazon will have replenished some stock by then and the claims figures would have reduced.
Tips to avoid Shortage claims
- Ensure that inventory matches purchase orders
- A vendor should ensure the unit case sizes correspond to the items they are physically shipping, particularly if they face massive shortages.
- Conduct an evaluation of the Vendor Central catalog to confirm that it has the right UPC and GTINs.
- Use standard case packs and pallets rather than combining SKUs in a case or a pallet.
- Always keep the product catalog up to date on vendor central.
- Make sure to stay within the delivery window
- Vendors should send their POs in time to meet the desired delivery window.
- If the delivery window is closed when the package arrives (due to its late arrival in the Amazon fulfillment Centre), the Amazon staff will not be able to mark it as a shipment received.
- Other tips
- A vendor should invoice the PO only after the shipment has been picked up from them but before it reaches the Amazon Fulfillment Centre.
- Use direct deliveries and avoid deliveries via sorting centers.
- Do not place individual product barcode labels on outer boxes.
How can StaffCloud help the vendors with a Shortage Claim?
- Our dedicated StaffCloud team thoroughly investigates each claim before initiating a dispute. StaffCloud can manage shortage claims, keep track of disputes and cases escalated to amazon and also keep the clients updated about dispute status reports from time to time. We also maintain the database of PODs for vendors so that disputes can be raised within time, without hassle.
- Our team strives to quickly resolve disputes for our clients and recover disputed invoice payments. Almost all disputes are solved on the first attempt, with a 90% success rate. Furthermore, we can assist vendors with updating the necessary documentation such as inventory receipts and BOLs.