For many Amazon Vendors, chargebacks (Operational Performance) from Amazon are a major pain point, as they not only incur costs but also require significant time investment when processing cases. In this blog post, we would like to take a closer look at the different forms of chargebacks and explain how they arise.
Chargebacks Due to Non-Compliant or Inaccurate ASN (Advance Shipment Notification)
ASN (Advance Shipment Notification) chargebacks are incurred when the information provided in the ASN does not match the shipment received at Amazon. This can include the following sub-points:
- The ASN was not available when the delivery arrived at Amazon's fulfillment center
- The Amazon Reference Number (ARN) on the ASN is inaccurate or missing
- The received quantity of units does not match the units on the ASN
- Expiration date is missing
- The tracking number and Bill of Lading (BOL) references in the ASN do not match the BOL in the appointment scheduling
Vendors can avoid chargebacks for ASN accuracy by ensuring that the information provided in the ASN is correct and matches the shipment sent to Amazon. Here are some points that vendors can apply to avoid ASN chargebacks:
- Use an automated system to create and submit ASNs to Amazon and link Vendor Central with your EDI. This can reduce the risk of human error and ensure that the provided information is correctly transmitted to Amazon.
- Verify the ASN information with the shipment in your warehouse before sending it to Amazon.
Chargebacks for Lack of Delivery Punctuality
PO (Purchase Order) chargebacks for delivery punctuality are used when a supplier misses the scheduled delivery date of the PO. For Amazon, this can mean longer processing times and higher shipping costs. Suppliers can avoid chargebacks for order date accuracy by ensuring they can meet the delivery date specified in the order. Suppliers can apply the following methods to avoid chargebacks for PO time accuracy:
- Use an inventory management system to track stock levels and avoid stock shortages.
- Use a freight forwarder or logistics partner who can deliver orders reliably and on time. OMNIFOX GmbH has a partnership with Packshack. If you are currently experiencing problems with your logistics, feel free to contact us.
Chargebacks: Frustration-Free Packaging/Ships in Own Container
Chargebacks for Frustration-Free Packaging/Ships in Own Container are conducted when a vendor disregards Amazon's packaging requirements. Frustration-Free Packaging is the gold standard of Amazon's packaging certification program. This packaging has the following characteristics:
- It is easy to open
- It is designed to generate as little waste as possible
- It protects the product from damage
- It consists of reusable packaging materials
SIOC (Ships in Own Container) is another variant of Amazon's packaging certification program where the manufacturer designs e-commerce suitable packaging that can be shipped directly to customers without an additional Amazon box. For Amazon, non-compliance can mean longer processing times and costs. By ensuring they comply with Amazon's packaging rules, vendors can avoid chargebacks for Frustration-Free Packaging. The following methods can help:
- Review Amazon's packaging guidelines and ensure products are packaged accordingly.
- Certify your products through the "Contact Us" form via Amazon Vendor Central
- Use Amazon's Frustration-Free Packaging Program to streamline the packaging process and reduce the risk of chargebacks.
Chargeback for Correct Carton Content
Chargebacks for carton content accuracy are incurred when the contents of a carton differ from the information on the packing slip. This may include inaccurate SKU data, inconsistent quantity information, or other errors. By ensuring that the contents of each carton match the information on the packing slip, vendors can avoid chargebacks. The following points can help reduce errors:
- Use an automated system to create and verify the ASN. This reduces the risk of human error and ensures that the provided information is correct.
- Verify the contents of each carton against the ASN before sending it to Amazon.
- Apply the printed carton labels to the correct cartons.
Disputing Chargebacks
We recommend regularly reviewing chargebacks and disputing them if necessary. In our experience, this is always worthwhile, as some errors can occur on Amazon's side and vendors may be confronted with chargebacks unjustly.
If you want to dispute chargebacks, proceed as follows:
- You can view chargebacks and your operational performance in the Operational Performance Dashboard in the "Reports" section in Vendor Central
- Click on "View Violations List" in the upper right corner, use the filters on the left side to narrow your search results, and click on the corresponding chargeback ID to display the details.
- Here you can click the "Dispute This Chargeback" button if you believe it is an error. It will explain exactly what documentation you need to provide.