Amazon Vendor Chargebacks: Complete guide

Chargebacks on Amazon Vendor , or violation fees , can be one of the biggest challenges you face as a Vendor on Amazon Retail. They not only represent a direct cost, but can also negatively impact your overall performance on the platform.

Thinking about that, this guide shows you everything you need to know about Amazon Chargebacks. You will learn what they are, how to review them in Central vendor, the different types of errors that can generate them and a general description of the applied rates. And, if you already face this problem, you will find the step -by -step instructions on how to create a successful dispute so that these surcharges are returned.

What are Amazon non -compliance surcharges?

AdvancedChargebacksare penalties Amazon Retail imposes on suppliers when they violate operational requirements. This could include incorrectly labeling boxes or failing to deliver products to Amazon warehouses on time. The range of charges is broad, so it's important to familiarize yourself with terms like Shipment Notification, ASN & Carton Labelling, Barcode link failing, Carton content inaccuracies, Collateral Prep Expiry Invalid ASIN, on-time accuracy, and other related terms that could result in a chargeback.

Amazon Vendor Chargebacks po on-time accuracy

The reason the chargeback mechanism exists is that every error in the process translates into small inefficiencies that result in costs for Amazon, for example, employees having to work overtime or the need to hire new workers in Amazon warehouses to solve certain problems arising from deliveries or incorrectly shipped packaging or pallets.

Amazon's implementation of penalties is intended to incentivize brands to improve their processes and adapt to the marketplace's requirements.

How to review the chargebacks in Central Vendor?

In Vendor Central, go to Reports – Operational Performance (if your Vendor Central is in English) and you will see an overview of chargebacks in the selected time period.

Defects are ordered by their status and additional details are included on the rate of policy violations and amounts charged by Amazon.

To see the details of the returns, click on it and you will see the ASINs and POs that resulted in the penalty.

For a complete review, the detailed breakdown by market and purchase order numbers must be accessed. To access the position, click on the total return. If you wish, export and download the full report for your files.

Amazon Vendor Operational Performance

The types of providers' position

Let's look at the types of care penalties shown in central vendor and, then, what each consists of:

  • Not valid
  • Excess weight
  • Box with excess size
  • Import documents sent late
  • Rejected delivery
  • Box content accuracy
  • Exempt additional packaging and level (SIOC)
  • Paper bill
  • Incorrect orders management
  • Breach of shipping/delivery deadlines for import merchandise
  • Information about non -compliant cardboard content
  • It has not been presented
  • Preparation problems
  • Appointment request with import order delay

ASN non -valid / precision of the ASN

The ASN, or Advanced Shipping Notification, is a message with relevant information about the contents of a shipment and the carrier's tracking information before delivery.

As a supplier, you are required to submit the ASN before the shipment arrives at Amazon's Fulfillment Center (FC). Failure to receive the ASN, or providing an inaccurate one, will result in a refund charge for ASN Accuracy.

Box content accuracy

The Box Contents Accuracy chargeback applies when there are discrepancies between the quantities of products in a box that Amazon receives and the information in ASN.

For example, if the ASN specifies that the box has 20 products, but the Amazon warehouse arrives 15, a penalty charge is issued.

Information about the content of the cardboard non -compliance with cardboard information

Carton Information Compliance chargebacks apply when Amazon receives unlabeled or mislabeled boxes at its fulfillment center.

To prevent this, the barcodes and labels on the boxes must be perfectly legible. Furthermore, the labels must display a 20-digit number that complies with the standard (SSCC or AMZNCC) as both plain text and barcode, and an ASN/BOL number in both text and barcode, or a complete PO list in both text and barcode.

In addition, the ASN must include the same identification at the cash level and the required information of the usual ASN.

Import documents sent late

Amazon requires that import documents be delivered within four days that follow the start date (if it is sea transport) or the same day of the output (if it is air transport).

Therefore, this chargeback is triggered when the business documents have not been delivered within the required timeframe.

Breach of shipping/delivery deadlines for import merchandise

The chargeback for Failure to Import Purchase Order on Time corresponds to the case in which an Estimated Cargo Delivery Date has been entered outside of the Shipping Window provided by Amazon.

Appointment request with import order delay

Amazon issues Import Late Reservation chargebacks if a reservation is not submitted at least 14 days before the Shipping Window Opening Date for ocean freight.

It has not been presented / not show

This chargeback will be issued if you or the carrier fail to pick up a scheduled shipment at the Amazon fulfillment center, causing delays and inefficiencies in Marketplace operations.

Punctual precision of purchase orders

Amazon will issue a chargeback of this type if your carrier delivers order volumes outside of the shipping window allocated in the confirmed purchase order.

Box with excess size

Amazon charges an additional fee for shipments in boxes or packaging that exceed certain size limits. Specifically, if it exceeds 63.5 cm on any side, unless the product being sold is larger than that.

If a shipment exceeds the size, Amazon will apply an extra charge to cover the highest handling and transport costs involved in the most bulky packages.

Amazon Vendor Chargebacks accuracy of the box content

Surplus purchase order units

When a seller ships more units of a product than the customer ordered, Amazon charges a fee for each additional item. This prevents sellers from shipping more than required, which could lead to unnecessary returns and higher processing costs.

Excess weight

In addition to size limits, Amazon also sets maximum weight limits for packages. If a shipment exceeds the maximum weight, which is usually around 23 kg, an additional fee will be charged. This covers the increased logistics and transportation costs involved in handling and shipping heavier packages.

Paper bill

Amazon generally requires invoices to be submitted electronically, either via EDI or through the "Create Invoice" feature in Vendor Central. Submitting a printed invoice or a PDF invoice via the Contact Us formincurs an additional charge.

Preparation problems

If a package arrives at Amazon's fulfillment centers in poor condition due to inadequate packaging or preparation by the seller, additional fees will be charged. This covers the costs of properly repackaging the product or reshipping it to the customer if necessary.

Rejected delivery

It is issued when Amazon finds security problems or regulatory non-compliance when shipments arrive at its logistics centers.

This happens, for example, if the pallets are stacked insecurely, the products are not duly insured or do not comply with Amazon's health and safety regulations.

Exempt additional packaging and level (SIOC)

Products with dimensions exceeding 45.5 x 34.0 x 26.5 cm or weighing over 12.3 kg are shipped and are not SIOC (Shipped in Own Container) certified. It is important to obtain this certification through Amazon's AVS team, either independently or via an ISTA-certified external laboratory.

Amazon position return rates

These are the applicable rates on Amazon Europe:

Type of Black Post
ASN precision 2-6% of sales costs
Accuracy of the box content € 0.22 -0.75 per unit
Compliance with cardboard information € 0.14 per unit
Late delivery of import documents € 50 -150 per document and day of delay
Import Po in non -compliance 3% of sales costs
Import of shipping with late reserve 3% of sales costs
Do not present yourself 290€
Punctual Precision of the Purchase Order 3-9% of sales costs
Large cardboard € 1.25 per box
Surplus purchase order units € 0.6 per unit
Overweight cardboard € 2.73 per box
Paper bill € 5 per bill
Preparation problems € 0.3 -0.78 per unit
Rejected delivery 290€
It is sent in your own container € 1.7 per unit

And these applicable return positions at Amazon United States:

Type of Black Post
ASN precision 2-6% of sales costs
Accuracy of the box content $ 2.6 per unit
Compliance with cardboard information $ 10 per box
Late delivery of import documents $ 150 per document, +$ 50 for each additional day
Import Po in non -compliance 3% of sales costs
Import of shipping with late reserve 3% of sales costs
Do not present yourself $50-$250
Punctual Precision of the Purchase Order 3-10% of sales costs
Large cardboard $ 25 per box
Surplus purchase order units 10% of sales costs
Overweight cardboard $ 25 per box
Paper bill N / A
Preparation problems $ 0.63- $ 1.26 per unit
Rejected delivery 3% of sales costs
It is sent in your own container $ 1.99 per unit

How to dispute erroneous charge returns?

Amazon allows you to present a dispute for erroneous return positions within a maximum period of 30 days since it appears in Central Vendor. To do so, follow these steps:

  1. Review the details of your return charges in the Operational Performance dashboard – View Defect List. This will give you an overview of the charges on your account, including their status, the rate of policy violations, and the amounts charged.
  2. Identify any return charges you believe were issued in error. To dispute them, click the Dispute.
  3. It provides a clear explanation and all relevant support documents to base your case.

Okay, I hope this guide has given you a comprehensive overview of Vendor Chargebacks, how to manage them, and how to work with Amazon to minimize the impact of these significant operating costs. At Azzgency, we manage them using our proprietary technology and recover substantial amounts for our clients. Contact us for more information.