Amazon Compliance Chargebacks: A Vendor’s Guide

As an Amazon Vendor,  the number of Deductions from  Amazon can be troubling. Of all the various types of deductions, we will talk about Compliance Chargebacks in this article.

Not only is it one of the most common types of deduction issued by Amazon but it is also the most difficult to avoid. In this article, we will cover the following topics:

• What are Compliance Chargebacks?
• Types of Amazon Compliance Chargebacks and the reasons behind them.
• Navigating Compliance Chargebacks on Amazon Vendor Central
• Solution

What Are Compliance Chargebacks?

Upon accepting Amazon's invitation to Amazon Vendor Central, you are required to adhere to Vendor Regulations when shipping your products to Amazon.

In any instance where you fail to comply with any of the terms, you are issued a Compliance Chargeback by Amazon. 

Types Of Amazon Compliance Chargebacks And The Reasons Behind Them.

There are hundreds of Amazon Vendor Chargebacks issued for various reasons, I’ll brief you about the most common ones faced by the majority of Vendors.

• This is issued when you fail to notify Amazon about a shipment reaching earlier than expected.

2. Purchase Order [PO] Related Chargebacks:

• When dealing with purchase orders (POs), several factors are taken into account:
  1. Units Required: Meeting the specified quantity in the PO is essential.
  2. Time Accuracy: Confirming a PO in a timely manner is crucial. Failure to do so can result in a chargeback.
  3. Rejected PO Rate: Rejecting a PO for valid reasons is understandable, it's essential to keep this rate in check.
  4. Shipping Window: After confirming a PO, adhering to the specified shipping window is crucial. Shipping before or after the window without proper communication can lead to chargebacks – including shipping early.

• Failure to comply with any of these factors can result in Compliance Chargebacks.

• There are numerous instructions to follow when it comes to labeling and packaging. Often times even a slight negligence in these gets you a chargeback. Familiarize yourself with these common guidelines to ensure compliance:

1. 1. Adhering to Wrap Specifications: The protective wrapping utilized for the product must align precisely with the stipulated requirements. Matching the appropriate type of wrap with the product's characteristics is imperative to avoid chargebacks.
   2. Label Design Precision: The design of product labels should mirror the exact specifications provided. Any deviations from the prescribed design can result in chargebacks. Thoroughly review label design requirements to guarantee accurate replication.
   3. Compliance with SIOC Standards: In instances where the product is designated as Ship In Own Category (SIOC), meticulous compliance is essential. Ensuring that packaging and labeling adhere to SIOC standards is critical to sidestep potential chargebacks.

Here's how you can view Compliance Chargebacks on Amazon Vendor Central

• Reports > Operational Performance

• Click On “View All” (Upper Left Side)

How To Manage  Compliance Chargebacks

Precaution is better than cure! So as a Vendor, your aim should be to prevent these by proactive monitoring. But with an army of robots from Amazon these are inevitable. So you better find an effective cure.

Disputing Amazon chargebacks:

Normally disputes are manually raised against these Amazon Chargebacks to recover losses. Picture this: a relentless stream of disputes requiring manual document uploads on Amazon Vendor Central. Each claim consumes 15-20 valuable minutes. Now multiply that by thousands, and the magnitude of the task becomes dauntingly clear.

Well with technology everything can be made easier. Let me explain how!

Empower Your Chargeback Automation Operations With iNymbus

We at iNymbus have developed a Cloud Robotic Process Automation for disputing Amazon Deductions. This automated solution, tailored to seamlessly integrate with your system, doesn't just complete tasks – it accelerates them by an astounding 30X compared to human efforts.

Our Cloud RPA not only processes claims but it goes a step further and helps you prevent those deductions in the first place, by finding the root cause of it.

Let us not only fight this battle for you but also win it, just like 200 other companies have done before.

Ready to transform your vendor operations? Take the first step:

📞 Schedule a brief consultation to witness firsthand how iNymbus Cloud RPA can revolutionize your approach.