Amazon Settlements Part II

Amazon has various fees associated with selling via FBA.  Many of these fees are obvious while other fees not so clear particularly when look at those other transactions found in your settlement.

The following are a couple of other transactions you may find in your settlement that you may not be familiar:

Goodwill: There are several reasons why you will see a “Goodwill” deduction on your settlement report. However, they are all due to the same basic reason: The buyer complained enough to get Amazon to give them a refund of some kind.  Depending on the reason for the refund, you may see a credit “Misc Adjustment” within 45 days of the charge in a subsequent settlement.

BuyerRecharge:  A buyer recharge can occur in the following manner:

  • A refund was issued for an “item not received” complaint. The order eventually arrived, and the buyer contacted Amazon Customer Service to request a recharge.
  • If you sell through FBA: If a refund has been approved and issued for an order, but the buyer does not return the item within 45 days of the refund request, Amazon will automatically reimburse you for the item.

These are 2 good examples of fees found in settlements that many FBA sellers may be unware.

Marketplace Reporting for Amazon contains a couple of reports designed to provide greater transparency into your settlements so you have a better understanding of sales, refunds, and associated charges & fees.

The “Settlement Transaction Summary” displays a summary of all orders, refunds, and other transactions based on the filters selected for the report.  This report is useful for accounting since the reports can summarize all transactions by fulfilment channel, transaction type, amount type and description, number of transaction, and total amount.  You can use the reports grouping feature to group the data in a variety of ways so that you can easily view different facets of the data.

The “Settlement Transaction Summary by Item” is similar to the “Settlement Transaction Summary” report, but displays greater detail listing all transactions for each item sold for each order, along with all refunds and associated fees as well as all other transactions found in your settlements.  This level of detail provides greater visibility into each and every transaction affecting your settlement and bottom line.  You can use the reports grouping feature to group the data in a variety of ways so that you can easily view different facets of the data like grouping by Settlement ID, SKU, ASIN, Transaction Type, etc.

In order to truly understand your settlements and transactions, you need to use both the “Settlement item Summary” report and the “Settlement Item Summary by Item” report found in Marketplace Reporting for Amazon.

 

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