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Understanding the 5 Types of Amazon Chargebacks

iNymbus Blog Header 5 Types of Amazon Chargebacks 1024 x 512 - Mar 2020

Editor's Note: This post was originally published in July 2018 and has since been updated for accuracy and comprehensiveness. 

If you’re an Amazon vendor, you know that Amazon does not hesitate to chargeback for basically everything. The result is leaky revenue, immeasurable time, and frustration. This can often be lessened with operations and compliance checks, and although each Amazon chargeback is unique, most fall into one of two categories: shipping or packaging. Vendor familiarity with the types of Amazon chargebacks (below) is critical to reducing them.

1. Purchase Order Issues

The most common of Amazon chargebacks, this includes failure to confirm POs in a timely manner, shipping extra units, and/or violating the ship window guidelines.

2. Receiving Issues

Received shipments that arrive at Amazon's Fulfillment Centers which violate compliance, including barcode issues or labels with missing information, is a chargeable offense.

3. Packaging Issues

Chargebacks are assured on items not properly bagged (must be polybagged!) and/or improper carton taping.

NEW UPDATE: In an effort to limit waste, Frustration-Free Packaging (FFP) requires items larger than 18" x 14" x 8" or 20 lbs. or more must be designed and certified as ready-to-ship.

4. Advanced Ship Notice (ASN) Issues

When shipping items to Amazon’s Fulfillment Center, vendors must correctly create and send an ASN from Vendor Central or through EDI, within the designated timeframe. Any error with the ASN will result in a chargeback.

5. Transportation Issues

A chargeback will take place on any transported packages where failure to set up routing requests, or follow specified shipping and delivery fee polices occur.

 

But what happens when you simply can’t keep up with the sheer volume, frequency, or time-consuming nature of Amazon chargeback processing?

Contact us

Find out how the customizable iNymbus cloud service, with limited I.T. involvement, can resolve and dispute deductions and chargebacks, automatically!

Learn how a Book Distributor brought their Amazon chargebacks to zero and has kept them there with little-to-no interaction. Download our Case Study PDF below.

Download to read book distributor chargeback and deductions case study.

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