The wholesalers of the precious metals industry in Dubai must understand what a chargeback is. A chargeback happens when a retailer or customer disputes a payment with their bank due to issues like non-delivery, faulty products, or billing errors. These disputes can negatively impact your profits and harm your relationships with retailers. Therefore, it is essential to find and resolve the main causes of chargebacks. Retailers depend on you to deliver high-quality products that match their orders precisely. Any mistakes in quantity, quality, or packaging can result in costly chargebacks. For many retailers, chargebacks are a way to recover losses caused by supplier errors.
Clear agreements between suppliers and retailers are essential in the precious metals business. These agreements, often referred to as Vendor Guidelines or Purchase Agreements, set out the expectations on both sides. Despite these agreements, errors can still happen at various stages of the supply chain, leading to chargebacks that may cost up to 20% of an invoice. This can quickly add up, eating into your profits.
However, by addressing the root causes of chargebacks, it is possible to reduce or even eliminate them. SUNFACET enterprise resource planning (ERP) system combined with a warehouse management system (WMS) provides the visibility and control needed to avoid these costly mistakes. This blog briefly explains eight common causes of chargebacks and shows how SUNFACET ERP and WMS can help reduce them.
1. Shortages
Shipping fewer items than ordered is one of the most common reasons for chargebacks. Whether it’s a mistake in the quantity shipped or sending items in multiple batches when a retailer expects the full order at once, this can lead to a chargeback. In the precious metals industry, where trust and precision are crucial, any shortfall in deliveries can damage relationships.
With SUNFACET ERP, combined with WMS, you can automate processes and get real-time updates on order quantities and stock levels. This ensures that you always send the correct number of items, preventing shortages and avoiding unnecessary chargebacks.
2. Incorrect Shipping Labels
In markets like Dubai, retailers often have strict requirements for shipping labels, including how they should be formatted and placed. Failure to comply with these requirements can result in chargebacks. Precious metals businesses must also meet international standards like GS1-128 for label formatting.
SUNFACET ERP integrates with your WMS to ensure that all shipping labels are generated correctly according to retailer guidelines. This not only helps you avoid chargebacks but also improves the overall efficiency of your shipping process.
3. EDI or ASN Errors
Electronic Data Interchange (EDI) and Advance Shipping Notices (ASN) are often required by retailers to track shipments. Errors in these notices, such as incorrect formatting or timing, can lead to chargebacks. For high-value goods like precious metals, it is vital that this data is handled correctly.
SUNFACET ERP and WMS automate the generation and transmission of EDI and ASN documents. This ensures that all required data is accurate and sent at the right time, helping to reduce errors and avoid chargebacks.
4. Late or Early Deliveries
Retailers expect deliveries to arrive on time. Sending products too early or too late can disrupt their inventory management, leading to chargebacks. In the precious metals industry, where timing is often critical due to market fluctuations, it is especially important to meet delivery schedules.
SUNFACET ERP helps you manage demand forecasting and scheduling, ensuring that deliveries are made exactly when needed. Real-time tracking of inventory and shipping schedules helps you meet your commitments and reduce the risk of late or early deliveries.
5. Damaged or Non-Compliant Packaging
Precious metals and jewellery often require specific packaging to protect them during transit. If products arrive in damaged or non-compliant packaging, retailers may issue a chargeback. Packaging must meet certain requirements, such as size, material, and labelling, to avoid penalties.
SUNFACET ERP and WMS automate checks to ensure that packaging requirements are met before items are shipped. This reduces the likelihood of damage and ensures compliance with retailer specifications, helping you avoid chargebacks and maintain customer satisfaction.
6. Shipping to the Wrong Location
Shipping high-value goods to the wrong address can cause significant problems, including financial losses and reputational damage. Mistakes like these are often the result of outdated data or miscommunication between departments.
SUNFACET ERP and WMS synchronise data across your business in real time. This automation reduces human errors and ensures that all shipments are sent to the correct location, helping to avoid costly chargebacks.
7. Using the Wrong Carrier
Retailers often prefer specific carriers for delivering high-value goods such as jewellery and precious metals. Using the wrong carrier can result in delays or failed deliveries, which can lead to chargebacks.
SUNFACET ERP provides tools for managing carriers, allowing you to choose the correct one for each shipment. By integrating transportation management with SUNFACET, you can ensure timely deliveries and reduce the risk of chargebacks.
8. Delivering Incorrect Products
Delivering the wrong product to a retailer can lead to lost sales and chargebacks. In the precious metals industry, where precision is key, mistakes like this can harm your reputation and relationships with retailers.
With SUNFACET ERP, you can maintain real-time inventory data, ensuring that the correct products are selected, packed, and shipped every time. This reduces errors and ensures that retailers receive exactly what they ordered.
Reducing Chargebacks with SUNFACET ERP
Minimising vendor chargebacks is essential for maintaining profitability in the precious metals industry. By using SUNFACET ERP, along with an integrated warehouse management system, you can address the root causes of chargebacks and simplify your operations.
Suntech Business Solutions offers SUNFACET ERP, a system designed specifically for the jewellery and precious metals sector. Our software helps you prevent chargebacks, improve efficiency, and strengthen your relationships with retail partners.
Contact us
SUNTECH BUSINESS SOLUTIONS
Mumbai India | Dubai UAE | Riyadh Saudi Arabia
Email: [email protected]
Phone: +971 552201713
Website: https://www.suntech-global.com/
