Vendor Chargebacks 101: A Guide for Amazon Suppliers


Did you know that over 1.9 million businesses are operating in Amazon stores? It consists of small and medium enterprises from America to worldwide.

These enterprises are Amazon suppliers that make about 60% of sales in the store. It’s a good percentage for a business, but it can get better.

These suppliers can avoid chargebacks to have more significant profits. There are many ways to go around it, and we are happy to share them with you.

Do you want to get more profit from Amazon? Read more to know the tips and tricks when selling on Amazon.

Knowing Amazon Vendor Chargebacks

Amazon is an online retail giant that allows vendors to sell in their stores. But there are guidelines that each vendor needs to follow.

If you don’t follow these guidelines, they’ll make compliance deductions. The fees will be against your sales; that’s why they call it vendor chargeback.

There are many types of chargeback that they can impose. The following are some examples of it:

  • Direct Fulfillment Chargebacks
  • Advance Shipment Notification (ASN) Chargebacks
  • Transportation Chargebacks
  • Receive Process Chargebacks
  • Purchase Order (PO) Chargebacks

You’ll know if Amazon issued a chargeback when you receive notifications from them. Send them a reply if you plan to accept or do an Amazon charge dispute.

Avoid Chargeback Fees

After studying the types of Amazon vendor chargebacks, it’s time to learn how to avoid it. You’ll have deductions in direct fulfillment if you deny or cancel accepted orders. If you fail to use the specified shipping method of the order, you’ll also have a fee.

Avoid these Amazon Vendor chargeback fees by following strict shipping instructions. Update the order availability in the store to prevent cancellation.

In ASN, you’ll have chargeback fees if there is incorrect or missing information. Customer deductions are also applied if Amazon doesn’t receive ASN before shipment.

Double-check everything and give attention to detail, like the number of ordered units. Ensure that all information in the ASN is the same as the actual shipment.

Transportation Chargebacks are due to transportation issues. Avoid it by ensuring shipments are ready early with the correct freight.

Complete all related tasks according to the timeframe set by Amazon. Follow the proper schedule for your carriers. If they aren’t on time, update Amazon about the rescheduling.

If the transaction’s not smooth in warehousing, you’ll have fees for Receive Process. Avoid it by ensuring there is a PO label attached. Check if barcodes are correct and not missing.

To avoid purchase order chargeback, have a thorough checking of shipments. See if the confirmed buy order matches the quantities.

Learn More on Vendor Chargebacks for Amazon Suppliers Now!

Amazon Suppliers should be cautious when it comes to these fees. They may be expensive, so it’s better to avoid or prevent them.

Having fees will be bad for business, so stay on top of the guidelines. Continue educating yourself and check how you operate. Your way of handling the business is your greatest weapon in avoiding these fees.

Do you want more tips on other topics like this? We have articles on business, fashion, entertainment, games, and other topics.

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About the Author: Veronica Baxter

Veronica Baxter is a writer, blogger, and legal assistant operating out of the greater Philadelphia area.


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