A guide to managing Amazon Vendor Chargeback fees
Selling on Amazon can be a lucrative business, but it comes with its fair share of challenges. Amazon has over 6 million active merchants, which implies that it must strictly supervise all of its vendors. One such challenge is dealing with #AmazonChargeback, which can cause significant financial losses for businesses that sell on Amazon. Amazon issues chargeback when you fail to comply with its rules due to an interruption in the flow of operations.
By taking steps to prevent chargeback, you can save thousands of dollars and ensure the long-term success of your business on Amazon. So, begin by understanding what exactly chargeback fees are.
What exactly is Amazon chargeback and what do they reveal?
Chargeback is classified into numerous types, including Prep & Transportation related chargeback, PO process timeliness, & ASN Accuracy chargeback, to mention a few. Other fines may apply if there is poor packaging, late delivery, incorrect labeling of cartons, cartons not being within the pallet boundary, or data misalignment.
Whether the shipment label is inaccurate, or the numbers simply do not match up, there is still a cost associated with this because it causes mistakes in Amazon's warehouse system. These issues cost Amazon time and money, which they pass on to their sellers and vendors in order to encourage compliance with guidelines.
How to identify the type of Amazon Chargeback fee and avoid them?
Log in to Vendor Central and review your Operational Performance Report to see what you've been charged for. Because each chargeback stems from a unique non-compliance, tackling those issues is critical to enhancing your overall operations. To avoid fees building up one after the other, check your chargeback on a weekly basis.
You may encounter one of these chargebacks:
To make your case, you'll need to provide Amazon with supporting documentation to the extent possible. Occasionally, if the fee is small, vendors tend to weigh up the cost of disputing the fee against the time it will take. They leave the money on the table. Over time, these small changes accumulate into millions of dollars!
We have also observed that the same charges cropping up over and over again is indicative of something that needs to be changed in your supply chain.
How can you reduce or avoid chargeback fees?
Simple modifications can be made right now to reduce chargeback:
??Checking barcode quality is the simplest technique to reduce Shipment Chargeback. Ensure that unit barcodes are precise, visible, and easy to scan while complying with Amazon's labeling criteria.
??To minimize Unconfirmed Purchase Order Chargeback (fees applied for products not included in the original purchase order), double-check the contents of each carton before it leaves your warehouse.
??Another approach to save money is to keep your product data up to date. It is critical that the information on your Purchase Order matches the information on your shipment.
??To avoid missed pickups, it's crucial to confirm the planned pickup time provided after routing for pickup. If you cannot accommodate the given pickup time, reschedule it before 5:00 p.m. PT on the day before the scheduled pickup.
??Non-compliance of barcode can result from missing barcodes, unreadable barcodes due to damage, or if the barcode product identification number is not linked to the ASIN in your catalog.?it is essential to include a product identification number (UPC, ASIN, EAN, ISBN, etc.) that is both barcoded and printed numerically on the exterior of your merchandise.?
??To ensure cartons with more than one sellable unit do not exceed 50.0 pounds. Overweight cartons can injure associates, damage equipment, and delay availability of your products on Amazon. If cartons exceed weight limit, only one sellable unit should be packed, and warning labels must be visible.
Simply put, a chargeback is a penalty that Amazon Vendors receive for not adhering to Amazon’s rules and regulations. It is crucial for vendors to ensure compliance with Amazon's guidelines to avoid these charges and maintain profitability.
Access your Vendor Central Account and learn more about complying with all types of Amazon Chargeback fees by clicking here.
Explore more: ??Problems with Receive Process ??Problems with Purchase Orders (POs) ??Problems with Preparation
Of course, accidents happen, and you can incur chargeback by mistake. According to industry experts, DimeTyd’s platform is currently the top solution for Amazon 1P vendors who are navigating Amazon’s complex accounting structure. By using this platform, vendors can quickly resolve chargeback issues and improve their overall #profitability.
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