3 May 2021
Amazon Chargebacks for Vendors: How they can impact your margins
Being a Vendor on Amazon is a coveted privilege for selected brands and it helps you to expand your sales volume considerably.
However, fulfilling directly to Amazon is not that strait forward, since vendors are expected to meet a lot of requirements when shipping to Amazon.
For example: For the preparation of products and labeling the boxes Amazon has strict rules. If you fail to meet these requirements Amazon can impose fees, which they call “chargebacks”.
Be alert for Chargebacks
Chargebacks can be silent killers and ensure that profits will quickly erode. If no attention is paid to chargebacks, they can easily take up to 3-8% of your turnover. Amazon works with different types of chargebacks. An overview of main chargebacks:
- Advance shipment notification (asn) chargebacks
- Receive process chargebacks
- purchase orders (po) chargebacks
- preparation chargebacks
- Transportation chargebacks
To make it even more complex each of these main chargebacks is build-up out of at least 3 ‘sub chargebacks’.
The good news is that you can prevent and or dispute chargebacks, but Vendor chargebacks are a complex issue involving multiple systems and various logistical causes. It’s worth preemptively prevent or, if not possible, resolve the chargebacks for healthier, long-term profit margins.
Would you like more information or advice with preventing and disputing your chargebacks?
Maze-One has a lot of experience, and we can help identify the reason of the chargebacks and most importantly help you reducing costs due to chargebacks.