Vendor Central: Contesting Chargebacks and Invoice Reconciliation
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The rejected purchase order rate chargeback is based on the rates at which you reject or backorder the units of a product that Amazon orders from you. This chargeback was previously known as purchase order confirmation rate. If you accept an order for a product. But reject more than 20% of the quantity Amazon orders from you in a given purchase order.
show moreAmazon will reduce the purchase price they offer on your product by 3% of the cost of goods sold for all units. Over this 20% threshold, the reduction will be surfaced to you in the form of a chargeback. This chargeback applies to items categorized by Amazon as baby.
Beauty grocery health and personal care, luxury, beauty, and software. This chargeback will not apply to an order of a product. If the total product unit’s Amazon ordered from you in the 12 months preceding the purchase order submission date are less than the minimum unit threshold shown in the table. Amazon provides in their center. The minimum unit threshold for a product is determined by product category.
For example, for a baby product. If Amazon has ordered less than 5,000 units over the 12 months prior the purchase order submission date, the chargeback will not apply to the order of that product. If you have rejected less than 20% of the cumulative units ordered for a given product. By Amazon. Over the past 13 weeks, you will not receive a chargeback.
Amazon provides an additional table in their support center, which shows more details on the ordered unit threshold of 5,000 units. For the example of the baby product, you can prevent this charge back by maintaining a high confirmation rate. And accepting or back ordering at least 80% of each product that Amazon orders from you for a consistent period of time. For example, if Amazon sends you a purchase order for a hundred units of a single product, you would need to accept or back order at least 80 units to prevent this chargeback.
You have the right to reject the fulfillment of a product that Amazon orders from you. And if you do the acknowledgement code that you use will determine whether this chargeback applies to the product. In that order, if you choose a soft rejection code, then you will receive the chargeback. If you choose a hard rejection code, then you won’t receive the chargeback.
However, this will cause Amazon to stop ordering this product from you. In general, Amazon interprets rejection codes describing a temporary issue, preventing order fulfillment as a soft rejection canceled out of stock. Not yet available invalid product information. Rejection code signaling a permanent issue. Preventing order fulfillment are interpreted as a hard rejection discontinued obsolete, canceled suspend orders because of the way Amazon’s systems interact. You may receive purchase orders after you’ve indicated that something is temporarily unavailable.
If you receive purchase orders after you’ve indicated that a product is temporarily unavailable through self-service and you’re receiving this chargeback for that reason, you can contact Amazon and tell them when your products will be back in stock so that they stop ordering for that time period. If you repeatedly confirm a product is back ordered excessive back order chargeback may apply.
Low purchase order. Confirmation rates have an impact on Amazon’s ability to fill customer orders, maintain proper levels of inventory to support, demand, and maintain an efficient supply chain.