Rate Non-Compliance Chargebacks
We have recently improved our ship/delivery date expectations for purchase orders (POs) and re-evaluated our chargeback policy. As a result, we are phasing out Cancelled PO Units chargebacks in favor of new On-Time Non-Compliance and Unfilled by Cancel Date chargebacks. These changes require that you pay close attention to the
ship/delivery windows on POs so you can ensure that you have enough inventory to meet expectations and avoid penalties. The following new chargebacks will replace the Cancelled PO Units chargeback:
Non-Compliance chargeback - Applies to non-compliant Early or Late events that occur prior to the order cancellation date.
- Unfilled by Cancel Date chargeback - Applies to confirmed items (including
backordered line items) that you do not ship or that do not arrive before
the order cancelation date. Vendors are notified by email and in Vendor
Central in advance of upcoming order cancellations.
- What is the timeline for this change?
- April 2013 - We will notify you about potential On-Time Non-Compliance and
Unfilled by Cancel Date chargebacks so you can make adjustments in your
processes. The charges will be waived until June 2013.
2013 - On-Time Non-Compliance and Unfilled by Cancel Date chargebacks begin.
Additionally, Cancelled PO Units chargebacks will end.
can you avoid these infractions? Follow these best practices when
immediately available for fulfillment
collect orders, ensure a routing request is submitted with the order ready
for pickup date within the ship window.
prepaid orders, ensure your carrier is requesting an appointment to the
Amazon warehouse within the delivery window.
not immediately available
backorders are allowed for the PO, confirm with a backorder acknowledgment
code and provide an estimated ship date (for collect orders) or estimated
delivery date (for prepaid orders). Update the estimated ship or delivery
date for backordered items if this date changes. Note that excessive
backorder rates will result in the revocation of backorder privileges.
backorders are not allowed for the PO and you are unable to fulfill the
item within the window, reject the line item.
with unknown availability - Reject the line item.
Where can I get more information? Go to
Vendor Central > Resource Center > Operations > Chargeback Fee
Schedule and Info.