Amazon deducts from a vendor’s remittance checks, the vendor should acknowledge POs in vendor central. Chargebacks apply to several types of operational or logistical malfunctions. There are tips to get around some of these unnecessary chargebacks, let’s look at them.
Chargebacks are operational fees Amazon deducts from a vendor’s remittance checks. There are tips to get around some of these unnecessary chargebacks but before that, let’s look at the two areas where your chargebacks can be viewed.
Underpayments tab:
Chargebacks apply to several types of operational or logistical malfunctions. They also apply to vendor non-compliance, such as incorrect packaging and other errors.
POs: These are chargebacks applied for confirmed on-time POSs, shipping on shipping windows, and shipping some extra units.
Receive issues: These chargebacks apply to compliance violations during the arrival of shipments. Violations like missing/broken barcode labels, missing/incomplete information warrant chargeback fees.
Prep issues: These chargebacks refer to non-compliance with standard packaging. Violations like improperly poly bagging items or unsecurely taping cartons can be applied with chargeback fees.
ASN issues: Chargeback fees also apply to ASN, or Advanced Ship Notice sent incorrectly from Vendor Central.
Transportation issues: Chargeback fees happen when the vendor fails to set routing requests for the packages.
How can you prevent unnecessary chargeback fees?Acknowledge POs in vendor central
The vendor should acknowledge POs in vendor central. Then, he or she should indicate which units are to be shipped within the correct shipping windows. This action should be completed 12 hours right after the arrival day of the PO.
In case the vendor uses EDI, advise the EDI provider to look into the mapping.
Comply strictly with packaging protocols
Make sure your packaging follows the standard set by Amazon at the DC level. Keeping a checklist of the packaging protocol would prevent a massive headache in the end.
Advance PO shipment
Although eagerness is a commendable attitude, chargeback fees apply if you start shipping a day or two before the intended start ship date, only within the period of the shipping window.
Unfilled by cancel date
Always follow the cancel date of the shipping window. If the units are still unavailable at the cancellation date, cancel them off the PO. Then, ship what is or are available. If you’re always encountering this problem, it’s best to request a wider ship window.
Don’t be afraid to ask for little requests like only getting POs on Monday to make your business life easier.
No label
Don’t forget to label your shipments correctly. You can personally print your carton labels under the Orders menu and Shipment tab of Vendor Central. Also, you’ll need ASIN level information on the PO.
If you’re using EDI, tell your provider to correct their Amazon GS1 label mapping immediately. GS1 labels can be acquired through your vendor’s ERP system, but that’s outside the Vendor Central.
Taping and bagging issues
Read Amazon’s Packaging Certifications Guidelines and apply everything in your packaging. Find the guideline in Vendor Central’s Resource Center, Legal Documents.
ASN issues
ASN’s are sent before a PO’s shipment is scanned. To complete this task, go to Vendor Central and manually send an ASN within the same day the package is about to be shipped.
If you’re operating through EDI, contact your EDI provider and let them correct their 856 mappings.
Routing problems
Submit a routing request before sending your PO shipments. This is a necessary step to avoid getting chargebacks.
Pro tip:
Keep a detailed record of POSs, shipping information (like dates), tracking information, carton labels, receipts, and more. If you want to file some disputes over unreasonable or wrong chargebacks, these pieces of documents would immensely help.
Yes, you can file a chargeback dispute. How do I do this? File a dispute under Chargeback Claims under the Performance tab of Vendor Central. File promptly, provide clear and truthful answers. Back your explanations with relevant evidence.
If your dispute has been successful, expect the chargeback amount to be credited back to you within 90 days.
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