Understanding the 5 Types of Amazon Chargebacks
2021 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 1P vendor, you know that Amazon does not hesitate to take chargebacks 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. This represents a large volume of claims automated in iNymbus today.
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. This includes prep bag and hangar compliance.
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?
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.
