11 Feb What you should know about Amazon chargebacks on Vendor

● Failure to comply with the inventory preparation and delivery rules may result in severe financial penalties or chargebacks from Amazon to Vendor accounts.
● Paying attention to issues such as labelling, type of packaging or the correct and timely notification of delivered orders are some of the keys to avoid them.

As we 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 be aware that, if you fail to comply with the rules set by Amazon, chargebacks may occur.

What are chargebacks? These are the charges made by Amazon for non-compliance with its rules to a Vendor account. These are financial penalties that can sometimes make it so unprofitable to sell on Amazon as to make it unviable to continue sales. It is therefore important to know how to prevent and manage them. Here are a few things you should 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 called ASN. If there are errors or missing information in this notification, the marketplace may impose this chargeback. This happens when you do not put the expiry date on your product, do not create the mandatory ASN or it arrives after the deadline.

Preparation chargeback:

Depending on the type of product you are sending to their warehouses, Amazon will require specific preparation. The package may require packaging, bubble wrap, bagging or sealing. Failure to comply with each of these four requirements may result in a separate chargeback.

Carton contents:

Each box you send must be correctly labelled. If there are problems with these labels, for example, if they do not display properly or arrive in poor condition, you are liable to be penalised by Amazon.

SIOC (Ships In Own Container):

When the products exceed the maximum size or weight established by Amazon, they need special packaging, they must go in their own container. If you do not follow these instructions regarding packaging and dimensions, Amazon will apply a penalty.

Incorrect management of orders:

Problems with cancellations and late deliveries and confirmations are also grounds for penalties. You must ship the units you have confirmed for each ASIN within the deadline to ensure that they reach the customer on time. If you confirm in the purchase order more units than you are going to send and, therefore, Amazon does not receive them when scheduled, you will be charged a non-compliance fee.

Accuracy of the contents of the box:

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

Keep in mind that, as 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. It will then debit your account.

Nozama can help you manage all types of chargebacks by repeatedly disputing them within your Vendor account. One by one, we will look at the reasons why Amazon has imposed them on you and attach the necessary evidence to dispute them as Amazon needs to. We will also provide you with regular reports summarising the evolution and status of your chargebacks, so that you will always know the profitability of your operation with Amazon. We can also advise you on how to ensure that they are not charged again, as far as possible.