Deductions aren’t just frustrating and costly – they can even show when your Amazon Vendor account might be at risk…
While chargebacks and shortages are generally seen as an annoying cost of doing business on Amazon, unfortunately their impact can go even further than your profitability – undermining your operational performance and even affecting your Amazon relationship.
Here, pulled together by our expert Vendor team, are 5 of the most common issues we see – plus practical ways to fix them before they become a problem.
High Chargeback Volumes
Chargebacks don’t just hit your P&L – they’re Amazon’s way of flagging friction in your supply chain.
And when they mount up? High chargeback rates are one of the retail giant’s key indicators of a high-risk Vendor partner.
What to do
Keep a close eye on patterns. Are the same errors repeating? Are chargebacks tied to specific ASINs, warehouses or workflows?
Root cause analysis is really important here – you’re not only looking to reclaim what’s owed (enlist our experts for this here), but stopping the issue for good.
Late or Partial Purchase Order Fulfilment
Missed or under-fulfilled POs disrupt Amazon’s inventory flow and impact the customer experience – a big no-no for Amazon, so repeat occurrences can affect your standing as a Vendor.
What to do
Only confirm POs you can realistically fulfil, and work closely with your ops teams to ensure lead times are accurate.
If delays hit? Update Amazon with revised ETAs as soon as possible.
Inaccurate or Late ASNs
Advance Shipment Notifications are the foundation of Amazon’s receiving process, so if they’re late or don’t match the goods you risk shortages and processing delays – and this can even lead to your Vendor account being suspended.
What to do
Automate your ASN process where possible, and double-check that details (PO numbers, quantities, tracking codes) match the physical shipment exactly.
Packaging & Labelling Issues
We talked about how tiny labelling errors can cost your brand big on Amazon recently and it’s true, incorrect or inconsistent packaging and labels can lead to manual processing, delays – and more and more chargebacks eating into your profits.
What to do
Run periodic packaging audits, especially ahead of peak season. If your range has grown quickly, make sure every product is still compliant.
And if those chargebacks have totted up?
Speak to our Chargeback Recovery team for expert help to return those monies back to your bottom line.
Safety & Compliance Gaps
For Amazon, product safety is non-negotiable – even minor issues with labelling, documentation or warnings can result in swift account action and suspensions.
What to do
Ensure your listings and products meet all safety requirements for your category, including up-to-date documentation, warning labels, and accurate shelf life where needed.
Not sure what to do? Speak to our experts
The Bottom Line
Treating deduction management as an afterthought could cost more than margin – and that’s bad enough! – it could put your account at risk.
But, with the right processes and visibility in place, these issues are all fixable; and often avoidable.
Want our Vendor team to conduct an Account Health audit, advise on operational strategies or help you recover those chargebacks?