Amazon chargebacks: a vendor’s index

Amazon chargebacks are fees that nearly every vendor who does business with Amazon has to work through. If ignored, they can eat up a significant chunk of your business’s bottom line each year.  

To keep up with demand, Amazon has put specific and strict processes in place to keep efficiency high and costs low. This is generally for good for consumers, but non-compliance with Amazon’s policies can be costly for vendors.  

Below we’ll cover all the ins and outs of Amazon chargebacks, including fees, the dispute process, how to prevent chargebacks, and the operational impact of Amazon guideline non-compliance for vendors.  

What is an Amazon chargeback?

Amazon chargebacks, also known as deductions, occur when money is deducted from your Amazon account or Amazon refuses to pay the amount owed to you for the product your business shipped.

What types of chargebacks exist?

• Fines: Product being shipped is not meeting Amazon’s operational performance guidelines and the vendor is fined for this slowdown.

• Invoice short payments: Amazon is not paying the invoice in full due to lost inventory.

• CoOps Accrual: Amazon is not invoicing the vendor at the correct cost - which often goes unrecognized by a vendor.

What causes an Amazon chargeback?

Amazon chargebacks occur when a vendor has not complied with one or more of Amazon’s guidelines throughout the supply chain journey.  

Amazon takes operational efficiency across distribution and fulfilment very seriously. In practice this means that Amazon will charge you for anything that slows down the receiving or processing of the goods you supply.  

Amazon can assess a chargeback for many different reasons. Some examples include lost inventory, incorrect catalog information, and incorrect product labelling. You can find a complete index of Amazon chargebacks and their causes below.

How do you view Amazon chargebacks?

You can easily view your chargebacks and learn more about operational performance in Vendor Central.

To view your Amazon chargebacks:

• Go to the Operational Performance Dashboard.

• Click on View defect list, which takes you to the chargeback page.

• From there, you can view and sort your chargebacks. Click on any issue ID to display detailed information about it.  

To view more information about your operational performance, go to the Operational Performance Dashboard.  

What are the costs associated with the Amazon chargebacks?

Costs vary according to chargeback type. Some Amazon chargebacks charge a flat fee per incidence, while others charge a percentage of the cost of goods sold. For more information on the costs associated with a specific type of chargeback, see our index below.

What are the impacts of chargebacks on vendors and sellers?

A few miscellaneous charges here and there are the cost of doing business with Amazon, but when these chargebacks compile over time, this can begin to affect the overall profits of the business. For vendors with significant issues in this process, this can amount to tens of thousands, even millions, of lost revenue.

Thankfully, many chargebacks can be traced back and disputed or caused by an easy fix just waiting to be identified.  

How to resolve Amazon chargebacks

While the specifics of resolving Amazon chargebacks will vary depending on the chargeback type (see index below), the following is the general four-step process you'll need to follow to resolve chargebacks and recover fees:

• First, determine the validity of the charge. It’s possible that the charge is incorrect.  

• Second, dispute the charges while following the guidelines within Vendor Central.  It is important to note that this process can differ based on the different chargeback type.

• Third, begin filing cases to attempt any recovery that was not paid back after submitting the disputes.  

• Lastly, complete and submit a settlement for the open balance.  Once the settlement process is completed, you cannot go back and recover money from that time period, so you need to be sure you have acted in a timely manner and captured all of the open balance.  

Remember, Amazon is an ecommerce giant, and to keep up with demand, there are specific and strict processes in place to keep efficiency high and costs low. Managing chargebacks is a daunting process but read on to learn how Flywheel can help lighten the load.  

Flywheel’s Fee Recovery Service

Managing chargebacks on a large scale can be incredibly time-intensive and should involve a dedicated team of fee recovery experts. Flywheel’s Fee Recovery program came to life out of a recognition of a need from vendors to have a hands-on team trained in the fee recovery process that eases the resource dedication needed on the matter. Here’s how our team tackles fee recovery for large enterprise businesses:

Identify

As mentioned above, many chargebacks are either incorrect or are easily solved if the root cause can be identified. Identifying the root causes across a catalog of thousands of items is a significant task - but that’s what our experts are here for!  

Dispute

Accurately disputing chargebacks is one element, but creating and managing these dispute cases at scale can lead to inefficiencies if there are not dedicated resources to the project. Our team manages thousands of chargeback disputes at a time, with our proprietary technology simplifying this process so that we can continue to scale and help recover even more fees.

Prevent

Prevention of chargebacks first stems from understanding and complying with all of Amazon’s guidelines and policies when it comes to shipping products to FCs. These guidelines and policies need to be reviewed on a regular cadence to monitor for changes to standard processes.

Even if your business has a solid understanding of these guidelines, things can still go awry. After Flywheel assesses all of your chargebacks and identifies the issues, if there are fixes that need to be put in place, our team will provide actionable strategies that will help to prevent or reduce these chargebacks going forward.  

Our team has recovered $75M in fees over the last 3 years, acting as a true extension of your team. If your brand is looking to increase profits by recovering fees at scale, you can learn more here.

An index of Amazon chargebacks

Below you’ll find a list of all of the types of Amazon chargebacks, grouped by chargeback type. We outline each chargeback’s fees, impacts, dispute process, and the steps vendors can take to prevent chargebacks in the first place.

Amazon chargebacks - problems with purchase orders (POs)

Problems with purchase order chargebacks occur when there are issues with how a vendor processes and fulfills a purchase order (PO) for Amazon. These errors can disrupt Amazon’s supply chain, leading to delays, increased costs, and compliance penalties for vendors.

Unconfirmed PO units

If you receive a chargeback for unconfirmed PO units, it means that you sent Amazon products that were not confirmed in your purchase order.

What are the fees for unconfirmed PO units?

Amazon charges 10% of the cost of the product for an unconfirmed PO unit chargeback.

What is the impact of an unconfirmed PO unit chargeback for Amazon vendors?

Amazon orders the products it plans to sell. If a vendor can’t confirm the number of products that it will send to Amazon, Amazon may look to other vendors in the future.

How to dispute an unconfirmed PO unit chargeback

If you’ve received an unconfirmed PO unit chargeback in error, follow the steps outlined here.  

To support your dispute, you’ll need to provide a screenshot of Vendor Central or the text copy/XML of the EDI 855 transmission that shows that the ASIN was confirmed on the PO for which you’ve received the fine.

How to prevent an unconfirmed PO unit chargeback

Make sure that you confirm purchase orders (POs) in Vendor Central within one day of the purchase order submission. (Vendor Central > Orders > Purchase Orders or EDI.)

If sending PO confirmations through EDI 855, send it before the Advanced Shipment Notification (ASN) and only confirm the quantities you intend to ship.

Submitting other information (like an EDI 997 or 856 document or submitting an ASN or load notification) does not count as confirming a PO.

Overage PO units‍

A chargeback for overage PO units means that you sent Amazon more products than you confirmed in a purchase order (PO).

What are the fees for overage PO units?

The fee you’re charged for an overage PO units chargeback depends on overage percentage, which is determined by up to 10 of your most recent overage purchase orders over the past two months.

Overage percentage is calculated by dividing the number of excess units Amazon received (in an overage PO) by the total number of units received for that same PO. (Overage percentage = PO excess units ÷ total PO units)

To determine the fee you’ll be assessed, Amazon places your overage percentage in one of three tiers and then charges a percentage of the cost of goods sold.

On a weekly basis, Amazon calculates which tier you fall into. And it takes only overage POs from the previous two months into account.

You can read more about exceptions in this article in Amazon Vendor Central.

What is the impact of an overage PO units chargeback for Amazon vendors?

Sending Amazon more product than it requested can result in excess inventory. Excess inventory takes up valuable storage space and may lead to overstocking of a product and longer sales cycles.

How to dispute an overage PO units chargeback

If you’ve received an overage PO units chargeback in error, you’ll need to follow the steps outlined here.

To support your dispute, you’ll need to provide a screenshot of Vendor Central or copy of the EDI 855 that shows the correct quantity of the ASIN that was confirmed in the PO.

How to prevent an overage PO units chargeback

Below is a list of the most common reasons why Amazon issues an overage PO units chargeback:

• Amazon may have incorrect information about how many individual units make up a case or which products should be ordered for case quantities.

• You may be combining multiple POs. Amazon cannot accept combined or consolidated POs. Units for multiple POs may be physically combined into the same box or same shipment. However, all order information, such as the PO confirmation, the ASN, and the invoice, must correctly reference the PO numbers originally submitted.

• You may have filled the order more than once by mistake.

• You may have confirmed fewer units than Amazon ordered and then sent the number of units originally requested. Amazon considers a PO to be valid for the number of units you confirmed, not the number it originally ordered.

PO on-time accuracy

If your confirmed products do not arrive within the purchase order (PO) window, you will receive a PO on-time accuracy chargeback. You can receive a PO on-time accuracy chargeback for items placed on backorder.

Purchase order chargebacks may occur when confirmed purchase order line items do not arrive or ship on time (not on time), are revised down (down-confirmed), or are canceled (not filled).

Amazon waives this chargeback for a given week (defined as Monday to Sunday) if the previous four-week average on-time rate was greater than 90%.

What are the fees for PO on-time accuracy Amazon chargeback?

If the trailing four-week average on-time rate is below 90%, the following charges will apply:

• Not on time: 3% of the cost of the product for confirmed units that arrive outside of the ship/delivery window.

• Down-confirmed: 3% of the cost of the product for the difference in confirmed units if that number is reduced after 5 days into the ship/delivery window. For example, if you confirmed 10 units but reduced that to 5 units after 5 days into the PO window, Amazon will deduct 3% from the unit cost of the missing 5 units.

• Not filled: 10% of the cost of the product for confirmed shipments that are automatically canceled by Amazon’s system due to not being delivered by the PO cancellation date.

For more details on how PO on-time chargebacks are calculated, reference this article in Amazon Vendor Central.

What is the impact of a PO on-time accuracy chargeback for Amazon vendors?

When PO line items don’t arrive on time, it causes logistical problems for Amazon and may impact its ability to make timely deliveries of inventory to customers.

How to dispute a PO on-time accuracy chargeback

To dispute a PO on-time accuracy chargeback, follow the steps outlined in this article.

You’ll need to include the following supporting documentation with your dispute:

 Not-on-time units:

• Prepaid Truckload/Less-than-truckload (TL/LTL) shipments: proof of the Carrier Central appointment request indicating the requested delivery date within the delivery window.

• Prepaid small parcel shipments: proof of delivery that includes a tracking number, PO, and a delivery date within the assigned delivery window.

• Collect shipments: A screenshot of the routing request page showing that the request was submitted on a business day before the last date of the ship window, and that the freight ready date was within the ship window. You also need to provide the matching Amazon reference number.

Not-filled units:

If units were never received:

• Proof of delivery that includes a tracking number, PO, and a delivery date before the order cancel date.

• The screenshot from Vendor Central (or Advantage) showing the invoice ID corresponding to the PO and the ASIN mentioned in the chargeback.

If units arrive after the order was canceled:

• Proof of delivery that includes a tracking number, PO, and a delivery date before the order cancel date.

• Prepaid TL/LTL shipments: A Carrier Central appointment screenshot showing a carrier requested delivery date at least three days before the auto-cancel date.

• Collect shipments: The routing request email from Amazon that includes a freight ready date at least seven days before the auto-cancel date and a matching Amazon reference number.

Down-confirmed units:

• A screenshot from Vendor Central showing the PO, ASIN, and confirmed units.

• The reason why the units were adjusted down (and if possible, screenshots/emails/proof of unforeseen circumstances beyond your control; for example, floods, fires, extreme weather, or carriers refusing to collect freight).

How to prevent PO on-time accuracy chargebacks

The table below provides some tips on how you can prevent chargebacks based on your product's availability.

Paper invoice chargebacks

‍Amazon issues paper invoice chargebacks whenever a vendor submits invoices to Amazon using a method other than Amazon’s approved electronic invoicing.

Amazon has two types of approved electronic invoicing:  

• Electronic Data Exchange (EDI) Invoicing (with AS2 or FTP format)  

• and web-based invoicing through the Create Invoice feature in Vendor Central.  

What is the impact of a paper invoice chargeback for Amazon vendors?

Submitting paper invoices increases Amazon’s invoice processing time and costs, resulting in a longer turnaround time for vendors.

How to dispute a paper invoice chargeback

Follow the steps outlined in this article to dispute a paper invoice chargeback.    

You’ll need to include the following supporting documentation with your dispute:  

• A screenshot from Vendor Central or an EDI file showing the invoice was sent electronically.

How to prevent paper invoice chargebacks

The easiest way to prevent paper invoice chargebacks is to submit invoices to Amazon via an approved electronic method.

Rejected PO rate

A rejected PO rate Amazon chargeback (previously known as the purchase order confirmation rate) is assessed when you reject or backorder more than 20% of the units of a product that Amazon orders from you.  

This chargeback was previously known as purchase order confirmation rate. It applies only to items in the Baby, Beauty, Grocery, Health and Personal Care, and Luxury Beauty categories.

What are the fees for a rejected PO rate?

After accepting an order for a product, if you then reject more than 20% of the quantity Amazon ordered from you in the PO (and if both the current week and trailing 13-week confirmation rates are less than 80%), Amazon will reduce the purchase price it offers by 3% of the cost of goods sold (COGS) for all units over this 20% threshold. This reduction takes the form of a chargeback.

A rejected PO rate chargeback will only apply if the total product units Amazon ordered from you in the 12 months prior to the PO submission date is greater than the minimum unit threshold shown in the table below.  

What is the impact of a rejected PO rate for Amazon vendors?

Low purchase order confirmation rates lead to an inefficient supply chain. They negatively impact Amazon’s ability to fill customer orders, maintain proper levels of inventory, and to fulfill demand.

How to dispute rejected PO rate chargeback

Follow the Dispute a chargeback steps if you believe you’ve received an errant Amazon PO rate chargeback. Below are the requirements for supporting documentation:

• Calculate your percentage of confirmed units per line on the purchase order and provide the details of your calculation.

• Calculate your percentage of confirmed units for the 13 weeks before the chargeback was assessed and provide details of your calculations.

• Provide the number of units that Amazon ordered from you in the past 12 months for the product that received a chargeback.

• Provide the acknowledgment codes that you used when confirming or rejecting lines on the purchase order.

• Depending on how you confirmed the PO, you may also need to provide a screenshot of the PO confirmation or a copy of the EDI transmission showing the PO acknowledgment code.

How to prevent rejected PO rate chargebacks

Vendors can prevent this chargeback by maintaining a high confirmation rate and accepting or backordering at least 80% of each product that Amazon orders for a consistent period of time. You can review your confirmation rates by going to Reports > Operational Performance.

If you reject the fulfillment of a product that Amazon orders from you, the acknowledgment code that you use determines whether a rejected PO rate chargeback applies. If you choose a "soft rejection" code (i.e. the product is out of stock), then you will receive the chargeback. If you choose a "hard rejection" code (i.e. the product is no longer in production), then you won't receive the chargeback. Note that using a “hard rejection” code will result in Amazon ordering the products elsewhere.

Amazon chargebacks - problems with advanced shipment notification (ASN)

Advance shipment notifications (ASN) are virtual notifications that vendors send to Amazon about carrier tracking information and the contents of a shipment before it arrives at an Amazon fulfillment center. ASNs ensure that Amazon receives shipments on time and can process them efficiently.

Advance shipment notifications are required for every shipment, regardless of freight type, size, or payment terms.

Advanced shipment notification chargebacks

Amazon assesses an advanced shipment notification chargeback under the following conditions:

• Required information in an advance shipment notification was missing or inaccurate

• Amazon did not receive an advance shipment notification before a shipment arrived at one of its fulfilment centers

Advanced shipment notification chargeback types

What are the fees for an advanced shipment notification chargeback?

The list below contains more information on the different ASN chargeback rates.

What is the impact of an advanced shipment notification chargeback for Amazon vendors?

Advance shipment notifications ensure that Amazon’s logistics operations run smoothly, allowing for an efficient experience for you and Amazon’s customers.  

Without complete, accurate, and on-time advance shipment notifications it becomes difficult for Amazon to efficiently receive, process, and ship products to customers.  

How to dispute an advanced shipment notification chargeback

Follow the steps outlined here to dispute a chargeback. You’ll need to provide the supporting documentation outlined below:

• A screenshot of the advance shipment notification in Vendor Central or the XML or text copy of the EDI 856 transmission that shows the ASN was submitted before the shipment was received

• A screenshot or email of the appointment confirmation that contains the progressive rotating order (PRO) or bill of lading (BOL) and the purchase order information

• A screenshot that shows the product’s expiration date was submitted in the advance shipment notification or proof that the product does not expire (only required for missing expiration date sub-type)

How to prevent advanced shipment notification chargebacks

To prevent an Amazon advanced shipment notification chargeback, your ASN needs to:

• Acurately reflect what you shipped to Amazon

• Include all required information outlined in the Vendor Manual

• Be submitted before your shipment arrives at a fulfilment center

For more tips on how to avoid ASN chargebacks, refer to this Vendor Central article.

Amazon chargebacks - problems with preparation

Amazon vendors receive a "problems with preparation" chargeback when they fail to meet Amazon's prep and packaging requirements for products shipped to an Amazon fulfillment center. These chargebacks are applied because non-compliance disrupts Amazon’s logistical operations.

Below we outline the different problems-with-preparation chargebacks vendors can receive.

Bagging non-compliance chargeback

A bagging Amazon chargeback is assessed when a product that requires a bag was not bagged or was bagged improperly. Certain products need to be bagged to protect them from damage, dust, and/or leakage.

What are the fees for a bagging non-compliance chargeback?

Amazon charges $0.85 per unit for a bagging non-compliance chargeback.

What is the impact of a bagging non-compliance notification for Amazon vendors?

Products lacking a bag are more frequently returned due to accumulation of dust/dirt on the product. Unbagged products may also get caught in Amazon’s conveyor belts and disrupt processing.

How to dispute a bagging non-compliance chargeback

If you’ve received a bagging non-compliance chargeback in error, follow the Dispute a Chargeback steps.

You’ll need to provide one or more images that show the PO/Shipping label, the product, and evidence that the product was packaged and barcoded properly.

How to prevent bagging non-compliance chargebacks

To avoid bagging non-compliance chargebacks, place the product in a transparent bag with a suffocation warning and seal the bag to protect it from damage and dust. Amazon needs to be able to scan the barcode without opening or unwrapping the product.

Suffocation warning non-compliance chargeback

Amazon may issue a suffocation warning chargeback if a product requiring a bag with a suffocation warning is missing the required warning.

What are the fees for a suffocation warning chargeback?

Amazon charges $0.63 per unit for a suffocation warning chargeback.

What is the impact of a suffocation warning chargeback for Amazon vendors?

If the bag containing your product is missing a suffocation warning, Amazon will apply the suffocation warning itself. The cost of this correction is included in the chargeback. Additionally, missing suffocation warnings may delay your product’s availability, slow down inventory turnover, and result in lower customer satisfaction.

How to dispute a suffocation warning non-compliance chargeback

If you’ve received a bagging non-compliance chargeback in error, follow the Dispute a Chargeback steps.

You’ll need to provide images that show the PO/Shipping label, the product, and evidence that the product was packaged and barcoded properly as to not require extra prep work at an Amazon fulfillment center.

How to prevent suffocation warning non-compliance chargebacks

When your products are packaged using bags, those bags must clearly display a suffocation warning. The suffocation warning must be printed either on the bag itself or attached as a label in a prominent place on the plastic bag. For specific requirements, see Amazon's suffocation warning requirements.

Bubble wrap non-compliance chargeback

A bubble wrap chargeback occurs when you fail to adequately protect fragile, sharp, or items with loose parts during shipping. Vendors receive this chargeback when Amazon needs to repackage your product for shipping.

What are the fees for a bubble wrap non-compliance chargeback?

Amazon charges $1.26 per unit for a bubble wrap chargeback.

What is the impact of a bubble wrap non-compliance chargeback for Amazon vendors?  

Inadequate packaging makes it difficult to efficiently process orders. If Amazon has to add bubble wrap to your product(s), it results in increased processing time and labor costs.  

How to dispute a bubble wrap non-compliance chargeback

To dispute a bubble wrap non-compliance chargeback, follow these steps.

You’ll need to provide one or more images that show the PO/Shipping label, the product, and provide evidence that the product was packaged and barcoded properly.

How to prevent bubble wrap non-compliance chargebacks

For more information on bubble wrap requirements, review this article that outlines Amazon’s bubble wrap policy. Following this policy will prevent bubble wrap chargebacks.

ASIN stickering non-compliance

An ASIN (Amazon Standard Identification Number) Amazon chargeback, formerly known as a barcode labeling chargeback, is assessed when a product does not have a valid, scannable ASIN barcode or the barcode is linked to an incorrect ASIN.  

What are the fees for an ASIN stickering non-compliance chargeback?  

In 2024 the fee for an ASIN non-compliance chargeback was $0.71 per unit. Amazon has said it may change the fee amount in 2025.

What is the impact of an ASIN stickering non-compliance for Amazon vendors?  

When products don’t have the correct ASIN barcode, it makes it very difficult for Amazon’s supply chain to operate efficiently. Incorrect or missing ASIN stickers can lead to identification and processing challenges, increased labor costs, fulfillment delays, and low levels of customer satisfaction.

How to dispute an ASIN stickering non-compliance chargeback

Follow the dispute a chargeback steps if you’ve received an errant ASIN stickering non-compliance chargeback from Amazon.

You’ll need to provide one or more images that show the purchase order or shipping label, the product, and provide evidence that the product was barcoded properly.

How to prevent ASIN stickering non-compliance chargebacks

To prevent an ASIN stickering non-compliance chargeback, ensure that:

• all of your products have a scannable barcode label that corresponds to the correct, active ASIN in Amazon’s catalog

• the barcode is readable (on the outside of the package)  

• only one barcode is displayed

Boxing non-compliance chargeback

You'll receive a boxing non-compliance chargeback if Amazon needs to rebox your products to keep them together, provide sufficient protection, or to keep parts together.  

What are the fees for a boxing non-compliance chargeback?  

Amazon charges $1.61 for a boxing non-compliance chargeback.

What is the impact of a boxing non-compliance chargeback for Amazon vendors?  

Improper packaging slows down Amazon’s intake process. It can also negatively impact the customer experience if, for example, a product is damaged in transit.

How to dispute a boxing non-compliance chargeback

Follow the dispute a chargeback steps if you’ve received a boxing non-compliance chargeback in error.  

To support your dispute, provide one or more images showing the product was properly packaged and boxed.

How to prevent boxing non-compliance chargebacks

You can learn more about Amazon’s boxing requirements here. Properly boxing your products will prevent boxing non-compliance chargebacks.

Taping non-compliance chargeback

If your products were not properly secured for shipment, you may receive a taping non-compliance chargeback.

What are the fees for a taping non-compliance chargeback?

A taping non-compliance chargeback is $0.66 per unit.

What is the impact of taping non-compliance chargebacks for Amazon vendors?  

When Amazon needs to retape a product’s package, it slows down processing time and can lead to delays. If a customer receives a product in an improperly secured package, it can also result in a poor customer experience.

How to dispute a taping non-compliance chargeback  

Follow the dispute a chargeback steps if you’ve received a taping non-compliance chargeback in error.

To support your dispute, you’ll need to provide one or more images that show the product’s package was properly taped.

How to prevent taping non-compliance chargebacks

You can prevent a taping non-compliance chargeback by ensuring all of your package’s openings are properly secured.

To learn more about Amazon’s taping requirements, refer to this article.

Set creation non-compliance

If products that comprise two or more units are not packaged as a set before they arrive at an Amazon fulfillment center, you will receive a set creation chargeback.

What are the fees for a set creation non-compliance chargeback?  

In 2024, the amount for the set creation chargeback was $0.97 per unit. Amazon has indicated it may change this fee in 2025.

What is the impact of a set creation non-compliance chargeback for Amazon vendors?  

When products that should have been packaged in sets arrive at an Amazon fulfillment center, Amazon needs to repackage them. This increases processing time and can result in delays for customers.

How to dispute a set creation non-compliance chargeback

Follow the dispute a chargeback steps if you’ve received a set creation non-compliance chargeback in error.

To support your dispute, you’ll need to provide one or more images that show that the product was properly packaged.

How to prevent set creation non-compliance chargebacks

Vendors can prevent set creation non-compliance chargebacks by correctly creating the pack size as described in the product title or by making sure multiple parts of a product are packaged together.

For more information about how to prevent this set creation chargebacks, see Amazon’s Set creation requirements.

Shrinkwrap non-compliance chargeback

Amazon assesses a shrinkwrap chargeback when a product that requires a shrinkwrap was not shrinkwrapped or was improperly shrinkwrapped.

Products must be shrinkwrapped or bagged if they need to be protected from damage, dust, leakage, or if the product has multiple parts that need to be bundled together.

What are the fees for a shrinkwrap non-compliance chargeback?  

Amazon charges $0.44 per unit for a shrinkwrap non-compliance chargeback.

What is the impact of a shrinkwrap non-compliance chargeback for Amazon vendors?  

When products aren’t shrink-wrapped, they are more prone to damage, contamination, or tampering during Amazon’s intake processes. Additionally, non-compliance with Amazon’s packaging standards may result in operational slowdowns, adding complexity to fulfillment and inventory management.

How to dispute a shrinkwrap non-compliance chargeback  

Follow the dispute a chargeback steps if you’ve received a shrinkwrap non-compliance chargeback in error.

To support your dispute, you’ll need to provide one or more images that show the product was properly shrinkwrapped or that shrinkwrap was not necessary.

How to prevent shrinkwrap non-compliance chargebacks

Review Amazon’s Shrinkwrap Requirements and Bagging Requirements for additional information about how you can avoid shrinkwrap chargebacks.  

Opaque covering non-compliance

If a product requires an opaque cover and was not bagged using a non-transparent bag, you may receive an opaque covering non-compliance chargeback.

What are the fees for an opaque covering non-compliance chargeback?  

The amount for the opaque covering chargeback is $0.95 per unit.

What is the impact of an opaque covering non-compliance chargeback for Amazon vendors?  

Amazon cannot deliver products containing nudity, provocative imagery, or vulgar language to customers unless they are enclosed in an opaque covering. If you do not provide this covering for the applicable products, Amazon will apply it. This additional step slows down the receiving process and may result in delivery delays for customers.

How to dispute an opaque covering non-compliance chargeback  

If you’ve received an opaque covering non-compliance chargeback in error, follow the dispute a chargeback steps.  

To support your dispute, you’ll need to provide images showing the purchase order, shipping label, and the product, in addition to evidence that the product was properly packaged and did not require additional prep work at a fulfillment center.

How to prevent opaque covering non-compliance chargebacks

You can prevent opaque covering non-compliance chargebacks by ensuring that products that require an opaque cover (e.g., if it has nudity, provocative positions, or vulgar language) are bagged properly in a non-transparent bag.

Cap seal non-compliance

If one of your products needs additional preparation to prevent damage and leakage, you may receive a cap seal non-compliance chargeback.

What are the fees for a cap seal non-compliance chargeback?  

A cap seal chargeback is $0.82 per unit.

What is the impact of a cap seal non-compliance chargeback?  

Products missing cap seals are more likely to leak during transit or during Amazon’s intake processes. When Amazon has to add a cap seal it slows down overall processing times. Additionally, shipping products without cap seals may increase the number of returns due to leakage.  

How to dispute a cap seal non-compliance chargeback?  

If you’ve received a cap seal non-compliance chargeback in error, follow the dispute a chargeback steps.    

To support your dispute, you’ll have to provide one or more images that show the purchase order or shipping label and the product. The images should provide evidence that the product was properly packaged and barcoded, and that processing it didn’t require any extra preparation work at an Amazon fulfillment center.

How to prevent cap seal non-compliance chargebacks?

Amazon’s Vendor Manual has more information about how to prevent cap seal non-compliance chargebacks. See the North American Vendor Prep and Receive Manual, Addendum 1: Product Restrictions and Prep Instructions.

Remove hanger non-compliance  

Accessories, bras, hats, shorts, socks, hosiery, sweaters, swimwear and underwear cannot be shipped on a hanger. If you ship one of the aforementioned products on a hanger, you may receive a remove hanger non-compliance chargeback.    

What are the fees for a remove hanger non-compliance chargeback?  

Amazon’s fees for a remove hanger chargeback are$0.58 per unit.

What is the impact of a remove hanger non-compliance chargeback?  

When a hanger has to be removed from your product it slows down Amazon’s intake process and may result in delayed delivery times.  

How to dispute a remove hanger non-compliance chargeback?  

Follow the dispute a chargeback steps if you’ve believe you’ve received a remove hanger non-compliance chargeback in error.

To support your dispute, you’ll need to provide one or more images that show the purchase order, the product, and provide evidence that the product was not placed on a hanger before being shipped to Amazon.

How to prevent remove hanger non-compliance chargebacks?

Ensure that accessories, bras, hats, shorts, socks, hosiery, sweaters, swimwear and underwear are not shipped with a hanger. Note that certain products must be shipped with a hanger. Reference Amazon’s Requirements for apparel article for more information.

Amazon chargebacks – problems with packaging  

For Amazon vendors, product packaging is more than just a box—it’s a crucial component of customer experience, brand reputation, and marketplace compliance. If your packaging fails to meet Amazon’s standards, you may receive one of the chargebacks we review below.

Ships in Product Packaging chargeback  

The Ships in Product Packaging (SIPP) program, previously Frustration Free Packaging (FFP) or Ships in Own Container (SIOC) program, allows Amazon vendors to ship orders in packaging with their own branding

Products with packaging dimensions greater than 18 x 14 x 8 inches or that weigh more than 20 lbs that do not belong to excluded categories (such as hazmat items with transportation requirements, Amazon Fresh items, and more) must be certified as SIPP or else they will incur a chargeback for each unit shipped to Amazon.  

What are the fees for a ships in product packaging chargeback?  

Effective January 1, 2025, eligible products will be charged a rate from $1.80 to $4.40 per unit shipped to Amazon based on product shipping weight, as outlined below.

• Under 10 pounds: $1.80/unit  
• 10 to <20 lb: $2.40/unit  
• 20 to <30 lb: $3.20/unit  
• 30 to <50 lb: $4.40/unit

What is the impact of a ships in product packaging chargeback for vendors?  

Using Amazon’s SIPP program reduces packaging waste and provides better customer delivery.    

How to dispute a ships in product packaging chargeback?  

Follow the dispute a chargeback steps if you believe you’ve received a remove hanger non-compliance chargeback in error.

The required supporting documentation varies based on the type of dispute:

• ASIN Dimensional or Weight Dispute: Submit a copy of the email and case ID from Amazon Selling Partner Support confirming that your ASIN has been re-measured and no longer falls within the dimensional or weight thresholds for the chargeback.

• ASIN Certification Status Dispute: Provide your completed ISTA 6-Amazon.com packaging test report, the Amazon ASIN enrollment template, and official correspondence (email or case ID) confirming your successful packaging certification.

• ASIN Exclusions for Nested or Interlocking Items: Include a picture showing the orientation of your inbound freight package and open a “Contact Us” case under Amazon Packaging Certification > Other Packaging Certification Questions.

How to prevent ships in product packaging chargebacks?

To avoid a ships in product packaging chargeback, ensure that all products that meet the aforementioned criteria are certified through SIPP as Tier 1 - Frustration-Free Packaging (FFP) or Tier 2 - Ships in Own Container (SIOC).

For more information on avoiding SIPP chargebacks, see this Amazon Vendor Central article.

Amazon chargebacks – problems with the transportation process

In Amazon’s ultra-competitive marketplace, fast and reliable fulfillment is critical. Logistical disruptions can lead to stockouts, poor customer experiences, and even vendor account suspensions due to late shipments.  

Pickup accuracy chargebacks  

If a collect truckload (TL) or less-than-truckload (LTL) shipment is rescheduled by the vendor after 5 p.m. PT on the day before the scheduled pickup or when the carrier arrives at the vendor's location (verified by GPS data) but cannot be loaded due to a vendor-related issue, you may receive a pickup accuracy chargeback.

What are the fees for a pickup accuracy chargeback?  

A pickup accuracy chargeback results in a $500 pickup accuracy chargeback for truckload shipments and a $200 pickup accuracy chargeback for less-than-truckload shipments.

What is the impact of a pickup accuracy chargeback for vendors?    

When vendors fail to honor a self-declared freight ready date, it makes vendor lead time volatile, disrupts carrier planning, elevates transportation costs, causes capacity issues, and eventually jeopardizes Amazon’s ability to meet customer demand.

How to dispute a pickup accuracy chargeback?  

Follow the dispute a chargeback steps if you believe you’ve received a pickup accuracy chargeback in error.

How to prevent pickup accuracy chargebacks?

If you cannot accommodate the scheduled pickup, you must change the pickup date by 5 p.m. PT the day before the scheduled pickup to prevent a pickup accuracy chargeback.

Here are some tips to help you avoid a pickup accuracy chargeback:

• Always verify the scheduled pickup time provided after routing.

• Keep your facility's operating hours updated to prevent shipments from being scheduled outside of those hours.

• Have your freight ready when the driver arrives. (Truckload drivers must be loaded within 90 minutes of their scheduled arrival, while less-than-truckload drivers must be loaded within 30 minutes.)

No-show chargebacks

A no-show chargeback is issued when the carrier fails to arrive for a confirmed delivery slot, and neither the vendor nor the carrier cancels or reschedules the appointment in advance.

What is the impact of a no-show chargeback for vendors?    

On-time bookings into fulfillment centers are essential for Amazon’s logistics operations. When shipments don’t arrive as scheduled, it disrupts not only the personnel expecting the delivery but also stock and inventory planning, which may impact Amazon’s ability to meet customer demand.

How to dispute a no-show chargeback?  

If you believe you’ve received a no-show chargeback in error, follow these steps to dispute it.  

Be sure to include the Amazon Delivery Record or the carrier’s Proof of Delivery for the delivered goods with your dispute. Both documents must be date-stamped by Amazon and clearly display the fulfillment center (FC) address and the Inbound Shipment Appointment (ISA) number.

How to prevent no show chargebacks?

To prevent no-show chargebacks, ensure your carrier adheres to scheduled appointment times and notifies Amazon via CARP if they are unable to do so.

Note:

• Coordinate with your carrier when booking appointments in CARP to avoid duplicate entries, as duplicate appointments may result in chargebacks.

• This chargeback applies only to TL/LTL Prepaid shipments. Vendors using Amazon’s Collect or Preferred Carrier Program are not subject to no-show chargebacks.

Import shipment late booking chargebacks

An import shipment late booking chargeback occurs when a booking is not submitted to Amazon’s origin service provider, Century Distribution Systems (CDS), at least 13 days before the Earliest Vendor Ship Date specified on the purchase order (PO).

What are the fees for an import shipment late booking chargeback?

The amount for an import shipment late booking chargeback is 3% of the cost of the product.

What is the impact of an import shipment late booking chargeback for vendors?    

Amazon assigns purchase orders with an Earliest Vendor Ship Date and a specific shipping window to maintain consistent product availability. Delayed booking submissions can interfere with import transit schedules, leading to delivery delays for customers.

How to dispute an import shipment late booking chargeback?  

If you believe that you have incurred an import shipment late booking chargeback in error, follow the Dispute a Chargeback steps. The following supporting documentation will need to be provided with your dispute:

• Screenshot of origin service providers booking system (VMS) with the confirmed PO's Earliest Vendor Ship Date.

• Screenshot of origin service providers booking system (VMS) with submitted booking.

How to prevent an import shipment late booking chargeback?

To avoid import shipment late booking chargebacks, ensure you submit your import shipment booking at least 13 days before the Earliest Vendor Ship Date on the purchase order.  

Import PO on-time non-compliance chargebacks

An Import PO on-time non-compliance chargeback means that the Estimated Cargo Delivery Date entered into the online booking system of Amazon's origin service provider, Century Distribution Systems, Inc. (CDS), was not within the ship window designated in the purchase order (PO) for your import shipment.  

What are the fees for an import PO on-time non-compliance chargeback?

Amazon charges 3% of the cost of the product for an import PO on-time non-compliance chargeback.

What is the impact of an import PO on-time non-compliance chargeback for vendors?    

Amazon issues purchase orders with a designated ship window to ensure products arrive within the expected timeframe. When vendors fail to deliver within this window, it disrupts import transit schedules and can lead to stock shortages and cause delays for customers.

How to dispute an import PO on-time non-compliance chargeback?  

If you believe you’ve received an import PO on-time non-compliance chargeback in error, follow these steps to dispute it.    

You’ll need to provide the following supporting documentation with your dispute:

• Screenshot of origin service providers booking system (VMS) showing the confirmed PO Earliest Vendor Ship Date and Latest Vendor Ship Date

• Screenshot of VMS with Estimated Cargo Delivery Date

How to prevent an import PO on-time non-compliance chargeback?

To prevent import PO on-time non-compliance chargebacks, be sure to provide an Estimated Cargo Delivery Date that is within the ship window designated on your PO.

Import documents late delivery chargebacks

Amazon issues an import documents late delivery chargeback when the required trade documents for shipment are not delivered to Amazon’s origin service provider, Century Distribution Systems, Inc. (CDS), by the Estimated Vessel Departure Date of your shipment.

What are the fees for an import documents late delivery chargeback?

The chargeback amount is $150 per document set for delays of one to three days. An additional $50 per document set is applied for each subsequent day.

What is the impact of an import documents late delivery chargeback for vendors?    

To minimize delays in import transit times, it is essential that the required trade documents are submitted on time. Late documents can cause delays in both transit and information flow, which may affect Amazon import shipments, lead to out-of-stock issues, and ultimately result in delays for customers.

How to dispute an import documents late delivery chargeback?  

Follow these steps if you believe you’ve received an import documents late delivery chargeback in error.    

You’ll need to provide the following supporting documentation with your dispute:  

• A copy of the email sent to the origin service provider, showing the “sent” date.

• A copy of the fax or courier receipt, indicating the delivery date to the origin service provider.

• A screenshot from the origin service provider’s booking system (VMS) showing the Document Receive Date.

How to prevent an import documents late delivery chargeback?

To avoid this chargeback, make sure to submit your required import shipment documents before the specified Estimated Vessel Departure Date.

Amazon chargebacks – problems with the receive process

If products get stuck in the receiving process, it can lead to delays, stock shortages, and chargebacks, impacting both sales and vendor performance metrics. Below we review Amazon chargebacks that result from problems with the receive process.  

Dunnage not compliant chargeback

A "Dunnage Not Compliant" chargeback indicates that improper or unacceptable packaging materials were used when shipping your products to an Amazon fulfillment center.

What are the fees for a dunnage not compliant chargeback?  

Amazon charges $25 per box for a dunnage not compliant chargeback.

What is the impact of a dunnage not compliant chargeback for vendors?    

Improper packaging can slow down the unpacking process, making it difficult to efficiently remove products from boxes and in some cases can lead to product loss. Additionally, using unacceptable packaging materials can result in damaged goods, adversely affecting the customer experience.

How to dispute a dunnage not compliant chargeback?  

Follow these steps if you believe you’ve received a dunnage not compliant chargeback in error.    

You’ll need to provide the following supporting documentation with your dispute:    

• Image(s) of the PO label and dunnage (packaging materials) with one ASIN from the shipment that shows the box was shipped with Amazon-compliant packaging material.

How to prevent dunnage not compliant chargebacks?

To avoid this chargeback make sure you use one of the following approved packaging materials: foam, air pillows, bubble wrap, full sheets of paper.

For more tips on how to avoid dunnage not compliant chargebacks, check out the following resources:  

• Amazon’s acceptable packaging materials video  

• Amazon packaging certification programs

Non-compliant barcode chargeback

A Non-Compliant Barcode chargeback occurs when a shipped product either lacks a barcode or has one that is unreadable.

What are the fees for a non-compliant barcode chargeback?  

Amazon charges 3% of the cost of the product for a non-compliant barcode chargeback.

What is the impact of a non-compliant barcode chargeback for vendors?    

If Amazon can’t scan a product’s barcode, it must pause the receiving process to verify the correct ASIN and apply a new label, leading processing delays and increased labor costs.

How to dispute a non-compliant barcode chargeback?  

To dispute a non-compliant barcode chargeback, follow these steps. You’ll need to provide the following supporting documentation with your dispute:

• Image(s) of the label and the ASIN barcode that show that the product was sent with a valid barcode and that the barcode could be correctly scanned when it left your facility.

How to prevent non-compliant barcode chargebacks?

Every product you ship to us must have a product identification number (UPC, ASIN, EAN, ISBN, etc.) that is both barcoded and printed numerically on the exterior for accurate identification and scanning.

Your shipment is considered non-compliant if:

• The barcode is missing.

• The barcode is unreadable due to damage, smudging, incorrect formatting, improper height, or interference from a blurry or reflective background.

• The barcode’s product identification number is not correctly linked to the ASIN in your catalog.

No PO label on carton chargeback

Amazon charges vendors for a no PO Label on carton chargeback when the shipping container lacks a purchase order (PO) number.

What are the fees for a no PO label on carton chargeback?  

Amazon charges a fee of $10 per package for no PO label on carton chargebacks.

What is the impact of a no PO label on carton chargeback for vendors?    

A shipment that is missing the purchase order number increases processing time and labor costs for Amazon, and it may impact Amazon’s ability to receive the product against the (correct) PO.

How to dispute a no PO label on carton chargeback?  

If you believe that you have received a no PO label on carton chargeback in error, follow the Dispute a Chargeback steps. Provide the following supporting documentation with your dispute:

• Image(s) of a valid label on a package that shows that the package had the PO information.

How to prevent no PO Label on carton chargebacks?

To avoid chargebacks for missing PO labels on cartons, ensure that ASN shipping labels include all required PO details. Additionally, follow Amazon’s labeling guidelines as outlined in the Vendor Manual and verify that the PO barcode does not use GS1-128 symbology (400 prefix).

Expired product chargeback

If Amazon receives a product that is either expired or set to expire within 90 days, you will may receive an expired product chargeback.

What are the fees for an expired product chargeback?  

Amazon charges $2 per unit plus 100% of the cost of the product for an expired product chargeback.

What is the impact of an expired product chargeback for vendors?    

Sending Amazon expired products jeopardizes Amazon’s ability to meet customer demand. Additionally, excessive chargebacks can negatively impact a vendor’s performance metrics, potentially leading to reduced order volumes or even suspension from Amazon’s Vendor Central program.

How to dispute an expired product chargeback?  

If you believe that you have incurred this chargeback in error, follow the Dispute a Chargeback steps. Provide the following supporting documentation with your dispute:

• Image(s) of the PO label and expiration date on the ASIN that show the product was shipped with more than 90 days until the expiration date.

How to prevent expired product chargebacks?

To prevent expired product chargebacks, make sure all products you ship to Amazon have an expiration date that is at least 90 days beyond the estimated delivery date to an Amazon fulfillment center.

Additionally, it’s important to use a clear and globally recognized date format on the product, such as "2015-Mar-1" instead of "12/1/11", to avoid ambiguity.

No carton content label chargeback

Amazon assesses a no carton content label chargeback when a package in your non-palletized (floor-loaded) shipment either lacks a valid carton label or has missing/incomplete carton label information in the Advance Shipment Notification (ASN).

What are the fees for a no carton content label chargeback?  

A no carton content label chargeback is determined by your trailing seven-day (T7D) labeling defect rate, which is calculated by dividing the number of packages with labeling defects by the total packages received during that period.

What is the impact of a no carton content label chargeback for vendors?    

Packages without a carton content label and the necessary ASN information require manual processing at our fulfillment centers. This increases labor costs, delays product availability, and raises the risk of receiving errors, potentially causing invoice discrepancies.

How to dispute a no carton content label chargeback?  

If you believe you’ve received an errant no carton content label chargeback, follow the dispute a chargeback steps within 30 days of the chargeback notification. The required supporting documentation will depend on the notes associated with the chargeback:

• If Amazon couldn't recognize any carton content labels, you’ll need to provide an example of the type of carton content label you used.  

• If the carton-level information was missing from the advance shipment notification, you’ll need to provide evidence of where the advance shipment notification contained the LP barcode information.

Note that as of July 2024 GTIN-14 is not an acceptable carton label for non-palletized shipments. For more information about Amazon’s pallet and carton labeling policies, see its pallet labelling guidelines.

How to prevent no carton content label chargebacks?

You can prevent no carton content label chargebacks by affixing an LP label with the required information to each carton in your shipment. Valid labels include: serial shipping container code (SSCC), Amazon container code (AMZNCC), 2D-barcode packing slip (2D-BPS).

The carton content label must show a compliant 20-digit number (GS1-128 standard SSCC or AMZNCC) as plain text and barcode, and an ASN/bill of lading (BOL) number in text and barcode (preferred) or a full list of purchase orders both in text and barcode.

Overweight carton chargeback

An overweight carton chargeback occurs when a shipment to an Amazon fulfillment center includes a carton containing multiple sellable units and exceeds 50 pounds.

What are the fees for an overweight carton chargeback?  

Amazon charges $25 per carton for overweight cartons (packages).

What is the impact of an overweight carton chargeback for vendors?    

Overweight packages pose a safety risk to Amazon employees and can damage equipment. Non-compliant cartons disrupt Amazon’s automated processing systems, leading to higher operational costs and delays.

How to dispute an overweight carton chargeback?  

If you believe that you have incurred an overweight carton chargeback in error, follow the Dispute a Chargeback steps. You’ll need to send one of the following documents with your dispute:

• Summary of the contents of the carton you shipped to Amazon along with the weight of each individual item as proof that the total carton weight is less than 50 lbs.

• Proof that the carton you shipped to Amazon contained one sellable unit.

How to prevent overweight carton chargebacks?

Make sure that any package containing multiple sellable units does not exceed 50 lbs.

If a carton weighs more than 50 lbs., it must contain only one sellable unit and have proper warning labels placed in a highly visible location.

For full details on Amazon’s shipping, packing, and labeling requirements, refer to the North American Vendor Shipment Guidelines.

Oversized carton chargeback

An Oversized Carton chargeback occurs when a carton shipped to our fulfillment center exceeds the allowed dimension limits. Carton size requirements vary by facility type:

• Inbound Cross Dock (IXD) and Sortable facilities: Maximum dimensions of 36” (L) x 25” (W) x 25” (H)

• Traditional Non-Sort (TNS) facilities: Maximum dimensions of 48” (L) x 29” (W) x 25” (H)

What are the fees for an oversized carton chargeback?  

Amazon assesses a fee of $25 per box (package) for oversized carton chargebacks.

What is the impact of an oversized carton chargeback for vendors?    

Oversized packages pose a safety risk to Amazon employees and can damage equipment. Non-compliant packages disrupt Amazon’s automated processing systems, leading to higher operational costs and delays.  

How to dispute an oversized carton chargeback?  

If you believe that you have incurred an overweight carton chargeback in error, follow the Dispute a Chargeback steps. You’ll need to send the following documents with your dispute:

• Summary of the contents of the package(s) you shipped to us as supporting documentation. In addition, provide the dimensions of each individual item as proof that all of the items can fit in a package that meets our dimension requirements.

How to prevent oversized carton chargebacks?

Make sure all cartons you ship to Amazon comply with the maximum dimension requirements.

If a carton exceeds the size limits on any side, it must contain only one sellable unit and have proper warning labels placed in a highly visible location.

For detailed shipping, packing, and labeling guidelines, refer to the North American Vendor Shipment Guidelines.

Carton content accuracy chargeback

A carton content accuracy chargeback means that the products or the product quantities in a box Amazon received do not exactly match the information in the Advance Shipment Notification (ASN).

There are four types of Carton Content Accuracy chargebacks: shortage, unexpected item overage, unexpected quantity overage, and case pack defects.

For more information on the different types of Carton Content Accuracy chargebacks, refer to this Amazon Vendor Central article.

What are the fees for a carton content accuracy chargeback?  

Amazon’s fee for a carton content accuracy chargeback is $1.67 per unit.

What is the impact of a carton content accuracy chargeback for vendors?    

Amazon’s fulfillment centers rely on an auto-receive system that expects accurate fulfillment of products listed on your confirmed ASNs. Inaccurate information can disrupt inventory management, potentially causing delays in customer orders.

How to dispute a carton content accuracy chargeback?  

If you believe this chargeback was issued in error, follow the steps in Amazon’s dispute a chargeback process and provide the necessary documentation to support your claim:

• For item labels on case packs/master packs: Submit images showing an open-faced box, inner packs, and individual sellable units of the ASIN, clearly displaying how the items are packed for shipping. All barcodes must be fully visible.

• For incorrect items received compared to the ASN: Provide a clear image of the item barcode for the missing product.

How to prevent carton content accuracy chargebacks?

To prevent carton content accuracy chargebacks, make sure to provide accurate information in your ASNs for each shipment, ensuring that no unexpected products are packaged and sent to Amazon.

Also ensure that the barcodes on each unit are mapped to the correct ASIN in the catalog.

If sending case packs (inner boxes), check that the case packs are not transparent and that the item-level barcode is only visible on the sellable items. Do not place item barcode labels on top of the case pack as this leads to the inner pack barcode being scanned instead of the sellable units, causing a discrepancy between received units and stow units.

Amazon chargebacks - problems with direct fulfillment

For Amazon vendors, operational disruptions from direct fulfillment failures can strain supply chains, cause stockouts, and even lead Amazon to reduce order volume. Long-term performance issues may also hurt a vendor’s Vendor Scorecard, affecting negotiations and overall business opportunities with Amazon.  

Below we provide an overview of the chargebacks associated with direct fulfillment, their impacts, dispute resolution procedures, and how to prevent them.

Cancellation rate chargeback

Amazon assesses a cancellation rate chargeback when you cancel an order after it has been submitted, either by rejecting the order outright or by starting fulfillment but failing to complete it.

These chargebacks typically happen when a vendor lacks sufficient inventory at the time the order is placed or is unable to fulfill the full quantity requested.

What are the fees for a cancellation rate chargeback?  

Amazon’s fee for a cancellation rate chargeback is $10 per issue.

What is the impact of a cancellation rate chargeback for vendors?    

A high cancellation rate can hurt your performance metrics and may result in the suspension of your warehouse or account. To learn more, see this article about suspension and reinstatement.

How to dispute a cancellation rate chargeback?  

If you believe that you have incurred this chargeback in error, follow the Dispute a Chargeback steps. Provide the following supporting documentation with your dispute:

• Justification, along with supporting documents (for example, case number) for rejecting the customer's order.

How to prevent cancellation rate chargebacks?

To avoid cancellation rate chargebacks, keep your warehouse inventory accurate and submit updated inventory feeds on time. To minimize the risk of receiving an order you can’t fulfill, update your available inventory at least once every 24 hours per warehouse.

For insights on performance metrics beyond chargebacks, visit Direct Fulfillment Reports and Metrics.

Ship method mismatch chargeback

A ship method mismatch chargeback occurs when an Amazon order is shipped using a different carrier or shipping method than the one specified in the order details.

What are the fees for a ship method mismatch chargeback?  

Amazon charges $10 per issue for method mismatch chargebacks.

What is the impact of a ship method mismatch chargeback for vendors?    

Using the incorrect shipping method can compromise Amazon’s ability meet stated delivery dates, and it generally increases overall shipping costs.

How to dispute a ship method mismatch chargeback?  

If you believe you have received a ship method mismatch chargeback in error, follow the Dispute a Chargeback steps. You’ll need to provide the following supporting information with your dispute:

• Justification, along with supporting documents (e.g., ASIN's actual dimension and weight or product restrictions) for the change of ship method.

How to prevent ship method mismatch chargebacks?

Keep the following in mind to prevent a ship method mismatch chargeback:  

• During integration, your business indicated it could ship using a specific carrier. If your warehouse is not actually set up for our drop shipments through that carrier, switching to another carrier, even if it is a comparable method, is not allowed. You must start using the carrier as soon as possible or your metrics will continue to be affected and your website availability will be at risk.

• Always follow Amazon’s instructions regarding the assigned ship method for an order.

• You cannot change the shipment priority (for example, change from standard shipping to priority shipping, or vice versa) without Amazon’s approval.

• Contact your Vendor Manager immediately if any products affected by a ship method mismatch chargeback do not correctly reflect the ship method and provide the products' complete package dimensions (L x W x H) and weight.

• If you are using EDI to send your Advanced Shipment Notification (ASN), make sure that you are using the ship method name provided by Amazon. For example, if the ship method in the order is UPS_2ND, referencing any other ship method in the ASN will be considered a ship method mismatch.