July 18th, 2013

On-Time and Fill
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:

• On-Time
  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.


• June
  2013 - On-Time     Non-Compliance and Unfilled by Cancel Date chargebacks begin.
       Additionally, Cancelled PO Units chargebacks will end.

How
can you avoid these infractions? Follow these best practices when
confirming POs:

• Items
  immediately available     for fulfillment




• For
  collect orders,      ensure a routing request is submitted with the order ready
  for pickup      date within the ship window.


• For
  prepaid orders,      ensure your carrier is requesting an appointment to the
  Amazon warehouse      within the delivery window.

• Items
  not immediately     available




• If
  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.
  


• If
  backorders are not      allowed for the PO and you are unable to fulfill the
  item within the      window, reject the line item.


• Items
  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.