eCommerce-focused software company UpstartWorks has rolled out its accounting automation engine, which was created to help save suppliers “millions in lost marketplace revenue,” according to an announcement.
The new tool is available to suppliers conducting at least $100,000 in sales monthly on Amazon and is only available at UpstartWorks, which describes itself as an “advanced e-commerce commercialization platform company for industrial brands.”
UpstartWorks CEO Rohan Thambrahalli said in the announcement that Amazon is “the leader in the e-commerce marketplace” and offers a very good opportunity to product firms. Yet Thambrahalli noted that manually tracking and auditing receivables takes a lot of time and is not efficient.
“We have developed an engine that sifts through Amazon’s complex collection model to find resolution, increase cash flow, and boost outcomes,” Thambrahalli said in the announcement.
The accounting automation engine can find mistakes in claims, duplicate billing and the over 100 possible chargeback categories. It can also automate the reconciliation of marketplace receivables, among other capabilities.
UpstartWorks says that a minimum of $5,000 of each $100,000 a month of revenue created via major eCommerce marketplaces is lost in uncollected sales, chargebacks and accounting mistakes.
On the plus side, UpstartWorks said it assisted three clients recoup $1.6 million in overages and accounting mistakes on “large-scale marketplaces” in Q1 2021 per the announcement.
The news comes as a shift in the direction of digital commerce in the business-to-business (B2B) space has been on the horizon for a while. Research has estimated that B2B eCommerce marketplaces could facilitate $3.6 trillion worth of sales by 2024, and the coronavirus health situation is speeding up such trends.
This migration could prove profitable for suppliers that are well set up to cater to online purchasing demands, particularly as a survey last summer of 85 corporate purchasers found that 57 percent were making more purchases on online sites during the pandemic.