10 Feb What You Need to Know About Amazon Chargebacks in Vendor

● Failure to comply with inventory preparation and delivery rules can result in serious financial penalties or chargebacks from Amazon to Vendor accounts.
● Attending to issues such as labelling, the type of packaging or the correct notification and on time of delivered orders are some of the keys to avoiding them.

As we already told you when we talked about the risks of opening a Vendor account on Amazon, it is important that you are aware of how you should deliver all your inventory. You should know that if you fail to comply with the rules established by Amazon, chargebacks may arise.

What are chargebacks? These are the charges made by Amazon for non-compliance with its regulations to a Vendor account. These are economic penalties that, at times, can lower profitability with Amazon so much that they make it unfeasible to continue with sales. Therefore, it is important to know how to prevent and manage them. Here are some things you need to know about them.

Types of chargebacks that Amazon imposes on Vendor:

Invalid ASN:

You must submit your list of items in electronic format before making any deliveries to Amazon. This advanced shipping notification is what’s called an ASN. If there are errors or missing information in this notification, the marketplace may impose this chargeback on you. This happens when you don’t put the expiration date on your product, you don’t create that required ASN, or it arrives after the deadline.

Preparation Chargeback:

Depending on the type of product you are going to send to their warehouses, Amazon will require you to prepare them specifically. It may be that the package requires packaging, bubble wrap, bagging or sealing. Failure to comply with each of these four requirements may result in a different chargeback.

Carton Contents:

Each box you send must be properly labeled. If there are problems with these labels, such as them not displaying well or arriving in poor condition, you risk receiving a penalty from Amazon.

SIOC (Ships In Own Container):

When the products exceed the measurements or the maximum weight established by Amazon, they need special packaging, they must go in their own container. If you do not take into account these indications in terms of packaging and dimensions, Amazon will apply a penalty.

Incorrect order handling:

Problems with late cancellations and deliveries and confirmations are also grounds for sanctions. You’ll need to ship the units you’ve confirmed for each ASIN within the established timeframe to ensure they arrive on time with the customer. If you confirm more units in the purchase order than you are going to ship, and therefore Amazon does not receive them when scheduled, you will be charged a non-compliance fee.

Accuracy of box contents:

The contents of the box you send must be accurate. Contrary to what happened in the previous point, when Amazon receives an excess of unexpected products or units that have not been previously reported in the ASN, it can also charge you.

Keep in mind that, being a constantly evolving platform, Amazon is continuously generating new types of chargebacks. It will inform you and set a grace period for all of them. After that, it will charge them to your account.

At Nozama we can help you manage all kinds of chargebacks by disputing them, repeatedly, within your Vendor account. One by one, we will see the reasons why Amazon has imposed them on you and we will attach the necessary evidence to dispute them as Amazon needs. We will also provide you with periodic reports summarizing the evolution and status of your chargebacks, so that you always know the profitability of the operation with Amazon. We can also advise you so that, as far as possible, they do not recharge.