Chargeback

In the Amazon ecosystem, chargebacks are deductions from payments made to vendors (primarily 1P) when certain predefined requirements are not met. These infractions can include:

• Late shipments or missed delivery windows
• Incorrect or missing labels, such as GTIN or carton labels
• Non-compliant packaging (e.g., over-packed pallets, improper carton dimensions)
• Missing or late ASN (Advanced Shipment Notification)
• Routing violations - not following carrier or appointment procedures

Amazon enforces these rules to streamline supply chain operations and ensure a consistent customer experience.

Chargeback fees vary depending on the severity and type of violation. They are listed in Vendor Central, and vendors can often dispute them if they believe they were charged incorrectly.

Why it matters:

• Frequent chargebacks reduce vendor profitability
• They can indicate operational inefficiencies that need improvement
• Repeated non-compliance may affect Amazon's willingness to issue POs

💡 Example:
A vendor ships inventory without providing an ASN on time. Amazon applies a $150 chargeback per shipment for the violation, deducted from the vendor's next payment cycle.

In short: A Chargeback is a compliance penalty Amazon deducts from vendors or sellers when delivery, packaging, or operational standards are not properly followed.