Following our last week’s blog on reasons for vendor chargebacks, this week’s blog brings to you how vendors can fight and avoid such chargebacks. We have listed a few methods that might be useful for saving on profits.
Each chargeback is unique. Prevention techniques apply to each chargeback differently depending on the situation.
PO Acknowledgement/Unconfirmed Chargebacks – Vendors should acknowledge POs in vendor central and indicate which units can ship in the ship window. This must be completed 12 hours after the PO arrives (Amazon counts weekends as business days). If the vendors use EDI, then they have their EDI provider look into the mapping for their 855 PO Acknowledgment. In other words, preventing this chargeback is all about ensuring your shipments only contain products and quantities confirmed in the PO.
Overage on PO units – Vendors must look into any packing issues at the DC level that would cause discrepancies. vendors need to double-check that the prepared shipments match the quantities that were confirmed in the initial POs.
PO On-Time Accuracy Chargebacks In order to meet Amazon’s on-time requirements, vendors need to focus on two things:
· First, the warehouse team needs to have enough time to prepare shipments when POs come in (normally on Mondays).
· Second, inventory levels need to be checked before confirming purchase order items.
Preparation Chargebacks – Vendors must read the Amazon Packaging Certifications Guidelines to learn how they need to comply operationally. This document can be found in Vendor Central under Resource Centre, Legal Documents.
No Show Chargebacks – No Show chargebacks happen when the carrier doesn’t show up at Amazon’s warehouse within the agreed delivery slot and either carrier or the vendor fails to notify Amazon in advance about cancellation or rescheduling. This chargeback will only happen for prepaid shipments. In order to avoid these issues, make sure your carrier follows the given schedule, and if they’re not able to, ensure they inform Amazon about it and reschedule. Vendors that use a collect shipment method and preferred Amazon carriers are not impacted by this chargeback.
Cancellation Rate Chargebacks – Cancellation rate chargebacks occur when vendors deny incoming orders or cancel those that have already been accepted. vendors to abide by the cancel date of the ship window. If units are not available by the cancel date, have them cancel the units off the PO and ship what they have available. If this happens frequently, the vendor can ask the Amazon buyer to write POs with a wider ship window. It may also be helpful for the vendor to ask the Amazon buyer to send POs on Monday mornings only.
ASN Related Issues – The vendor must send the ASN BEFORE the PO’s shipment is scanned in an Amazon FC. This can be done by going into Vendor Central and sending an ASN manually the same day the package ships. If the vendor uses EDI advise them to contact their EDI provider and correct Amazon’s 856 mapping.
No Carton Content Label – Vendors can print carton labels directly from Vendor Central under the Orders menu and Shipment tab. They’ll need to have ASIN level information on the PO ready. If the vendor uses EDI advise them to have their EDI provider correct the GS1 Label mapping for Amazon. GS1 labels are printed directly from the vendor’s ERP system, so they’ll need to handle that outside of vendor central.
Hope these tips help you to avoid vendor chargebacks. Please comment below if you have any new tips to avoid chargebacks. GS1 labels are printed directly from the vendor’s ERP system, so they’ll need to handle that outside of vendor central.
We hope that these tips help you to avoid vendor chargebacks. Please comment below if you have any new tips to avoid chargebacks.
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