Tracking and monitoring Amazon consignment can be a significant challenge for businesses utilizing Fulfillment by Amazon (FBA). Inbound shipments often face issues like missing items, discrepancies, or delays. To make things worse, Amazon’s periodic updates fail to provide the detailed, real-time visibility sellers need to stay on top of their inventory. This lack of clarity can lead to a frustrating experience – extensive back-and-forth communication with Amazon, and costly disruptions to business operations.
To address these challenges, APPSeCONNECT has developed an innovative solution—a real-time Amazon consignment report integrated directly within SAP S/4HANA. This solution provides FBA sellers with the detailed insights they need to eliminate consignment-related issues once and for all.
Understanding the Amazon Consignment Process and Common Challenges
The inbound shipment process for Fulfillment by Amazon (FBA) begins when sellers prepare and ship their inventory to Amazon fulfillment centers. While this seems straightforward, sellers only receive updates from Amazon once the shipment reaches its designated center. This delay in communication can cause significant issues.
For example, shipments may arrive late, or a consignment might be marked as delivered but without confirmation that Amazon received the items. Sometimes, products go missing or get damaged in transit.
In these cases, sellers are left with the cumbersome task of raising complaints with Amazon, waiting for them to investigate, and then working through the resolution process—a process that will take quite some time and effort, while also distracting sellers from focusing on growing their business. And with different kinds of storage and shipping charges paid to Amazon for FBA services, it can take a financial toll on the business as well.
These issues lead to three major problems for FBA sellers:
Poor Shipment Tracking
Whether sellers use their own shipping carrier or Amazon’s pickup service, tracking capabilities are limited. If you’re relying on an independent carrier, tracking depends on the features offered by that provider. Even if Amazon’s pickup service is used, updates remain limited; the earliest notification sellers receive is when their consignment reaches Amazon’s fulfillment center. Unfortunately, Amazon’s details are often insufficient, only confirming the number of items received without further specifics.
No Real-time Updates
Amazon only provides periodic updates on shipments, meaning sellers can’t monitor the real-time status of their consignment. This lack of timely information leaves businesses in the dark when tracking their inventory movements.
Lack of Clarity
The absence of detailed, real-time information on consignment status can have a direct impact on business operations. Delays in confirming receipt of shipments affect inventory levels, which in turn affects product availability on Amazon’s marketplace. These disruptions can hinder sales and operational efficiency, ultimately damaging the business’s bottom line.
These factors lead to poor inventory management, as businesses cannot plan well for inventory flow. Imagine missing out on valuable sales or seeing canceled purchases because your best-selling items went out of stock. Such problems become prominent when you lack clear and detailed data about your FBA inbound shipments.
Our Solution: Detailed Amazon Consignment Report Generated in SAP S/4HANA
To address the challenges FBA sellers face with consignment tracking, APPSeCONNECT has developed a seamless integration between Amazon Seller Central and SAP S/4HANA. While typical integration endpoints include standard data such as sales orders, item information, pricing, and invoices, our solution goes a step further by introducing a unique feature—the Consignment Report.
This report is generated within SAP S/4HANA and pulls comprehensive consignment data directly from Amazon. It includes critical details such as consignment status, mismatch notifications, Amazon shipment numbers, and more, providing sellers with complete transparency over their inbound shipments.
One of the key advantages of this solution is that the report is updated in real time. Whenever a consignment issue arises, sellers can quickly pinpoint the problem, take action, and ensure their inventory is always fully stocked at Amazon’s fulfillment centers. This minimizes disruptions in order processing, helping businesses maintain smooth operations so customers can keep ordering.
Benefits of Amazon Consignment Report in SAP S/4HANA
With a detailed Amazon consignment report conveniently generated within the ERP system, businesses can unlock a range of benefits that streamline their inventory management and improve their overall FBA operations. Here are the three key advantages of utilizing this solution:
Enhanced Inventory Management with Accurate Consignment Tracking
With the consignment report in SAP S/4HANA, businesses can now monitor the status of their consignments in detail. From the moment the inventory leaves their warehouse to when it arrives at Amazon’s fulfillment center, sellers have access to precise data.
It empowers businesses to plan their inventory management more efficiently. Instead of second-guessing shipment statuses or waiting for delayed updates, sellers can ensure that they always have the right products to sell, in the right quantities available.
Real-Time Updates for Informed Decision-Making
Gone are the days of waiting for periodic updates from Amazon. The consignment report offers real-time data, ensuring that businesses always have up-to-date information on the status of their shipments. This timely access to critical data enables sellers to respond swiftly to any issues, such as delays or mismatches, preventing potential disruptions to their operations.
Real-time updates also allow sellers to make informed decisions on inventory replenishment and order fulfillment. With instant insights into when products are expected to arrive or if any corrective actions are needed, businesses can maintain optimal inventory levels and avoid unnecessary delays in order processing.
Full Visibility into FBA Operations for Optimal Shipment Planning
The consignment report provides full visibility into FBA operations, giving businesses a complete view of their inbound shipments. By understanding the exact status of their consignments, sellers can optimize their shipment planning to ensure their products are consistently in stock on Amazon’s marketplace.
With this comprehensive insight, businesses can better align their inventory strategy with customer demand, prevent stockouts, and avoid the loss of potential sales. It not only enhances efficiency but also allows sellers to maintain a competitive edge by ensuring product availability and meeting customer expectations without interruption.
Alongside our solution, we also recommend businesses selling on Amazon FBA to understand their policies in detail. Some consignment issues can arise due to sellers unknowingly violating Amazon’s policies. So it’s best to understand all guidelines associated with FBA, such as product categories, prohibited products, proper package label instructions, to check if prior approval is required for specific items and non-media products, etc.
To get started with these things, you can refer to the resource below.
Further Read: 9 Fulfillment by Amazon training videos to help you launch and scale
Say Goodbye to Your Amazon Consignment issues
If your business has faced the headache of tracking FBA consignments and waiting restlessly for days to get updates, it’s time to bid farewell to such issues. Our solution is simple but powerful – integrate Amazon Seller Central with SAP S/4HANA, and everything will work behind the scenes.
What you get is a highly detailed, real-time report readily accessible in our ERP system 24/7. Contact us to know more and understand how APPSeCONNECT can help automate your business processes. For further details about our solution for Amazon consignments, you can also schedule a free demo. Connect your Seller Central with your ERP through our intelligent integration platform and experience the benefits of advanced business automation with our unique solutions.
