What exactly does “chargeback” mean? In our context, it’s not consumer protection from fraud, but fees determined by large retailers such as Amazon or Walmart on their vendors for committing a violation in the realm of shipping or packaging. Because this is often a means for profit for retailers, they do not make appealing chargebacks easy, leading many vendors to simply treat them as a cost of doing business.
Editor's Note: This blog post was originally posted in 2018 and the frustration with chargebacks and deductions is more relevant as ever. Click here to learn more.
In this article written by Ben Kramer, Credit and Collections Manager at Outdoor Reach, the 5 types of chargebacks are outlined as well as practical and effective ways to combat them. Identifying and resolving common issues on the front end to avoid chargebacks recurring in the future is key. It's also a good idea to join groups who focus on chargebacks and deductions, such as the Retail Value Chain Federation (RVCF) that help retailers and suppliers build better relationships so all parties benefit. Keeping a pulse on vendor compliance changes and their chargeback schedule can also help reduce fees.