How to Avoid Amazon Vendor Central ChargebacksRavi SundarRajan
Every Vendor Central (VC) supplier is familiar with the frustration of receiving a chargeback and seeing deductions from their payment. Due to the immense effort required to list and market a listing on Amazon, it’s important to limit or prevent these chargebacks from occurring.
WHY DO CHARGEBACKS HAPPEN
There are various reasons as to why a chargeback happens. It’s important to understand these reasons so you know what to monitor.
PURCHASE ORDER (PO) ACKNOWLEDGEMENT:
- Late PO Acknowledgement: If the PO was not confirmed by the supplier within 24 hours after releasing the order, Amazon may chargeback 1% of the cost of the product. Suppliers are supposed to either confirm or backorder POs within 24 hours of release.
- PO Confirmation Change: If a vendor changes a PO within 48 hours of its confirmation, Amazon may chargeback some of the item’s cost
- Backorder without a Shipping Date: When a supplier backorders an item, they are supposed to update when it will be shipped. If they do not give a ship window, Amazon may chargeback some of the cost.
- Shipping Outside the Ship Window: If a supplier ships after the ship window, it will lead to chargeback of up to 10% of the cost of the product.
- No Routing Request: For collect orders where Amazon pays the freight, suppliers are supposed to create routing requests in advance. If they fail to create the routing request or if the collect date is outside the ship window, it will lead to a chargeback
- No Delivery Cancellation : If the order is not delivered within the delivery period and the order was not backordered earlier, Amazon will cancel the order and chargeback the supplier for delivery compliance.
SHIPPING LABEL REQUIREMENTS:
- No Label on Carton: Amazon expects each carton/container to have barcoded labels pasted on the box. If the label is missing or not scannable, Amazon will charge each carton for the missing labels.
No PO on Carton Label: Each carton label should have the PO number printed on the label. If not, Amazon will chargeback.
- No Barcode on the product : Each product should have a barcode printed on the label. If not, Amazon will chargeback.
- Expired Product : If the product has expired, Amazon will chargeback
ADVANCED SHIPMENT NOTIFICATIONS (ASN)
- Late ASN: Suppliers are supposed to send ASNs to Amazon either in Vendor Central or through EDI before the shipments reach Amazon’s fulfillment center. If not, Amazon will charge a Late ASN fee. This can range from $5 to $150.
- No ASN: If the supplier does not submit the ASN within two weeks of receipt of the shipment, additional charges will be added.
HOW TO AVOID CHARGEBACKS
Keeping track of every category of chargeback and maing sure tto meet Amazon’s strict requirements is difficult to do manually. Using an automated EDI system like that of TPSynergy will ensure that all aspects of the ASN, PO, and Shipment Label process is completed on time and accurate
Contact us today to schedule a FREE demo to learn how TPSynergy can implement an EDI system for you.