What are Amazon Vendor chargebacks and how do disputes work?

Amazon may issue a chargeback when it believes a Vendor has not met an agreed operational or supply-chain requirement.

The charge is applied to recover costs associated with the exception and encourage the Vendor to correct processes that create additional handling or disruption.

Why do chargebacks occur?

Chargebacks may relate to issues such as:

• Shipping fewer units than expected
• Incorrect shipment preparation
• Missing or incorrect labels
• Packaging that does not meet Amazon’s requirements
• Incorrect pallet preparation or stacking
• Deliveries outside the required window
• Missing or inaccurate shipment information
• Other non-compliance with Amazon’s operational standards

The exact chargeback reason and amount depend on the type of issue recorded by Amazon.

Are chargebacks the same as negotiated deductions?

No.

• Negotiated deductions and allowances form part of the commercial agreement between Amazon and the Vendor.
• Chargebacks generally relate to a specific operational or compliance issue.

Both can reduce the amount Amazon pays the Vendor, but they arise for different reasons.

How does the dispute process work?

A Vendor can dispute a chargeback when it believes the required standard was met or the charge was applied incorrectly.

The typical process involves:

1. Reviewing the chargeback reason and affected transaction.
2. Checking the applicable Amazon requirement.
3. Gathering evidence showing how the order or shipment was handled.
4. Submitting the dispute and supporting evidence through Amazon.
5. Monitoring the chargeback while Amazon reviews the submission.
6. Reviewing Amazon’s final decision.

Useful evidence may include:

• Purchase orders
• Shipment confirmations
• Proof of delivery
• Carrier documentation
• Packaging or pallet photographs
• Labels and shipping documents
• Warehouse or dispatch records

The required evidence and submission process may vary depending on the chargeback type.

What can happen after a dispute?

Amazon may:

• Uphold the chargeback
• Waive or reverse the chargeback
• Request additional information
• Keep the dispute under review while it investigates

A chargeback recorded as valid initially may therefore have a different outcome later.

Why can the status change in MerchantSpring?

Chargeback data represents the status available when the information was retrieved or uploaded.

If Amazon later changes a chargeback from in review to waived, MerchantSpring will need refreshed data before the updated outcome can appear in reporting.

Regularly refreshing chargeback and deduction data helps ensure profitability reporting reflects the latest available status.

Important note

Amazon controls the chargeback rules, dispute requirements, evidence standards, deadlines and final outcome. These may vary by chargeback type, marketplace and Vendor agreement.

Need help?

Contact support@merchantspring.io and include the relevant account, Vendor code, chargeback reference, purchase-order or shipment details, reporting period and any helpful screenshots or exports.