Chargebacks – PO On-Time Accuracy

Purchase order chargebacks may occur when confirmed purchase order line items do not arrive or ship on-time. Which is categorized as not on time are revised down, which is categorized as down confirmed or are canceled, which is categorized as not filled at the end of each week. Amazon generates reports for all purchase order on time accuracy rates by reports, operational performance.

Amazon will wave this charge back for a given week defined as Sunday to Saturday. If the previous four week average on time rate was greater than 90%. Therefore if the trailing four week rate is below 90%, the subtype categorized charges will be as follow. For not on time, 3% of the cost of the product for confirmed units that arrive outside of the ship or delivery window for down confirmed 3% of the cost of the product for the difference in confirmed units.

If that number is reduced five days after the start of the ship or delivery window, for example, If you confirmed 15 units, but reduced that to 10 units after five days into the purchase order window, Amazon deducts 3% from the unit cost of the missing five units for not filled 10% of the cost of the product for confirmed shipments that are auto canceled by Amazon’s system due to not being delivered.

By the purchase order cancellation date back ordered line items. Count as confirmed units and must be accompanied by accurate updates to expected ship or delivery dates to avoid auto cancellations back ordered line items also count against your on-time rates. If they are shipped or delivered outside of the agreed ship or delivery window.

Something to take note of for media vendors, not yet published and a new product items are measured separately for on time accuracy and such vendors must achieve a 90% compliance for not yet published and new product purchase orders to avoid PO on time accuracy, chargebacks for non-compliant units. This chargeback does not currently apply to imports.

This chargeback applies. If you are based in Canada and fulfilling purchase orders to Amazon’s us fulfillment network, or you are based in the us and fulfilling purchase orders to Amazon’s Canadian fulfillment network, you can prevent this charge back by confirming your purchase orders within 24 hours of them being generated, editing your product units within 2 to 4 days of the purchase order generation date only accepting products that will be available to ship within the specified window and avoiding reducing any confirmed purchase order units, five calendar days into the ship or delivery window.

For example, if the ship window starts on Monday, then you have until midnight on Friday to make adjustments to quantity without being subject to down confirmed chargeback rates for collect shipments, complete the routing request the same day as you confirm your purchase orders, the freight ready date must be submitted within your ship window.

For prepaid shipments ensure the carrier appointment is requested properly and units are delivered within the delivery window, confirm products as available only if they are immediately available from your warehouse for any products, not immediately available from your warehouse. And if the purchase order allows back orders.

Confirm the line item is backward with this number of units, you are able to fill keeping in mind the greatest threshold of less than 90% of a single purchase order back ordered units still count against on time performance. Provide either an estimated ship date for collect rate, or an estimated delivery date for prepaid rate for the line item.

Do not change the purchase order status code from a back ordered code to an accepted code when shipping backordered items, if the purchase order does not allow back orders reject the line item. If you do not know when the product will be available from your warehouse, reject the line item. Shipping on time, expectations are communicated in the header section of the purchase orders you receive from Amazon.

These contractual date expectations apply to all purchase order line items when confirmed purchase order line items arrive at unexpected times canceled don’t ship at or are revised down Amazon risks, providing inaccurate inventory.