Errors in shortages and chargebacks could be costing companies between 1% and 5% of their total cost of goods sold (COGS) on Amazon, the company said in a Thursday (Aug. 4) press release.
“Building a profitable [eCommerce] business on Amazon can be especially difficult in today’s environment, and companies can not afford to leave any money on the table,” said CommerceIQ CEO Guru Hariharan.
The Revenue Recovery Automation software uses machine learning (ML) to help find the sources of revenue and profit leakage. It then automatically disputes incorrect shortage and chargeback claims, and enables users to visualize their data.
With these capabilities, CommerceIQ said users can dispute all shortages, eliminate human error, gain visibility into shortage disputes and resolution, reduce data discrepancies and minimize the amount of manual effort required from their teams.
PYMNTS research has found that with the surge in global eCommerce shopping, there has been a greater frequency of consumers filing transaction disputes.
Advertisement: Scroll to Continue
Read more: 39% of eCommerce Shoppers Are Initiating More Disputes
In fact, 39% of the eCommerce shoppers surveyed said they are disputing more eCommerce transactions now than they did before March 2020, according to “Tackling the Chargeback Surge,” a PYMNTS and Ethoca collaboration based on a survey of 3,557 consumers across Australia, the U.K. and the U.S.
With its eCommerce management platform, CommerceIQ applies ML and automation across marketing, supply chain and sales operations to help consumer brands grow market share and profitability, CommerceIQ Chief Financial Officer Jaya Jaware told PYMNTS in a May interview.
See also: Economic Uncertainty Boosts Demand for Automation
“The need for a solution is higher because people are focused on profitability,” Jaware said. “So, in that way, it’s a positive change for a company like us who is bringing automation to them.”
