How to understand, prevent, dispute, and recover from every type of Amazon chargeback — and protect your profit margins for good. Updated: January 2026 | 15 min read | Vendor Central
If you’ve ever spotted an unexpected deduction on your Vendor Central account, you already know how frustrating Amazon chargebacks can be. Many vendors write them off as “just part of doing business” — but that mindset is silently destroying profit margins across the board.
The truth? Amazon chargebacks are one of the most controllable cost drivers in your entire supply chain. With the right knowledge and processes, you can dramatically reduce them — and dispute the ones that aren’t your fault.
This guide covers every type of Amazon Vendor Central chargeback, what causes them, how much they actually cost, and exactly what you can do to fight back.
£4.8BTotal worldwide cost of Amazon chargebacks to vendors
£5,000Potential chargeback loss per £100,000 of Amazon revenue
13Distinct chargeback types vendors can be hit with
📋 Table of Contents
- What Is an Amazon Vendor Central Chargeback?
- Why Monitoring Chargebacks Is Critical
- The Real Cost of Amazon Chargebacks
- All 13 Types of Amazon Vendor Chargebacks
- 2 Ways to Manage Chargebacks on Amazon
- 4 Best Practices to Avoid Chargebacks
- How to Dispute an Amazon Chargeback
- Frequently Asked Questions
What Is an Amazon Vendor Central Chargeback?
An Amazon Vendor Central chargeback is a financial penalty that Amazon imposes on vendors when an operational issue disrupts its fulfilment process. When something goes wrong — for example, a vendor ships an overweight carton or submits an inaccurate Advance Shipment Notification (ASN) — Amazon’s fulfilment centres face increased costs and delays. To recover those costs, Amazon deducts the transaction amount from the vendor’s payments, plus an additional fee that varies by chargeback type.
Chargebacks are distinct from standard refunds or returns. They are compliance-driven penalties triggered by specific violations of Amazon’s Vendor Central policies, covering everything from labelling accuracy to delivery timelines.
⚠️ Key Distinction
Chargebacks are not the same as customer refunds or returns. They are operational penalties applied by Amazon against vendors — and they come directly off your bottom line.
Common triggers for an Amazon chargeback include:
- Advance Shipment Notification (ASN) errors
- Inaccurate carton content information
- No-show carrier deliveries
- Overweight or oversized cartons
- Late delivery of import documents
- Non-compliant product prep or packaging
Why Monitoring Chargebacks Is Critical
Many vendors treat chargebacks as a minor inconvenience — a line on a report they glance at once a quarter. This is a costly mistake.
The financial impact of chargebacks often goes far beyond the face-value penalty you see in your Vendor Central dashboard. Consider a brand receiving repeated chargebacks for prep issues because their product packaging is non-compliant. Beyond the direct chargeback fee, this creates:
- Supply chain disruption — delayed deliveries and processing bottlenecks
- Increased customer complaints — damage from poor packaging leads to negative reviews
- Higher operating costs — Amazon charges you for the prep work they have to do instead
- Reputational damage — poor fulfilment metrics can erode your Amazon standing
By proactively tracking chargebacks and implementing corrective processes, vendors can protect their reputation, reduce operating costs, and recover profits that are rightfully theirs.
To put the financial impact into perspective, here’s a worked example for a medium-sized Amazon vendor:
Business profile: Average product cost of £20 per unit, quarterly sales volume of 10,000 units, 100 shipments per quarter.
| Chargeback Type | Incident Rate | Units / Shipments | Quarterly Cost |
|---|---|---|---|
| Prep Issues (bagged units) | 5% of 10,000 units | 500 units × £0.50 | £250 |
| No Show | 2% of 100 shipments | 2 shipments × £425 | £850 |
| Import Shipment Late Booking | 3% of 10,000 units | 300 units × 3% × £20 | £180 |
| Total Quarterly Loss | £1,280 | ||
| Annualised Cost | £5,120 | ||
💡 Scale This Up
This example uses a small number of incidents. Larger vendors with higher volumes — or more chargeback types — can face losses many times greater. At scale, unchecked chargebacks can amount to tens of thousands of pounds per year.
All 13 Types of Amazon Vendor Chargebacks Explained
Amazon can issue chargebacks for 13 distinct types of operational non-compliance. Understanding each one — and how to prevent it — is the foundation of effective chargeback management.
ASN Accuracy
Any inaccuracy in an Advance Shipment Notification triggers a chargeback automatically. Provide on-time, precise ASNs for every shipment before it reaches a fulfilment centre.
Carton Information Compliance
Issued when cartons are shipped with missing, inaccurate, or unscannable labels. Strict adherence to Amazon’s labelling requirements is non-negotiable.
Carton Content Accuracy
Triggered when an ASN shows an incorrect quantity of products in a carton. Ensure your carton data matches physical contents exactly before generating ASNs.
Import Documents Late Delivery
For Direct Import vendors: trade documents must arrive within four days of the shipment’s departure date. Build robust tracking for estimated departure dates.
Import PO On-Time Non-Compliance
Issued when cargo delivery falls outside Amazon’s purchase order shipping window. Always confirm that delivery dates align with Amazon’s specified timeframes.
Import Shipment Late Booking
Occurs when a shipment booking isn’t submitted at least 3 days before the Ship Window Open date (air) or 14 days (ocean). Set calendar reminders well in advance.
No Show
When a carrier misses a confirmed delivery slot without prior cancellation. Maintain clear carrier communication and manage appointment changes through Amazon’s Carrier Appointment Request Portal.
Oversized or Overweight Carton
Amazon’s limits are 63.5cm on any side and 23kg maximum weight. Exceptions exist for naturally large items, but all other cartons must stay within these limits.
Overage PO Units
Delivering more units than specified in a purchase order results in this chargeback. Regularly review your product catalogue data and update any inaccurate information promptly.
Paper Invoice
Amazon requires invoices to be submitted digitally through the Create Invoice feature in Vendor Central or via EDI. Paper invoices — or digital invoices via unapproved channels — will trigger this chargeback.
Prep Issues
Products that don’t meet Amazon’s safe shipping standards — including barcode labelling, bagging, bubble wrapping, and liquid containment — will result in prep chargebacks. This is especially relevant for glass, fragile, and liquid products.
Rejected Delivery
If a delivery doesn’t meet Amazon’s safety or compliance standards (e.g., unsafely stacked pallets), it may be rejected outright and a chargeback issued. Review the delivery standards in Vendor Central’s Resource Centre.
Ships In Own Container (SIOC)
Products exceeding 45.5 × 34.0 × 26.5cm or 12.3kg that aren’t SIOC-certified will incur this chargeback. Work with Amazon AVS or your Vendor Manager to get SIOC certification as early as possible if you ship large items.
2 Proven Approaches to Managing Amazon Chargebacks
No single approach fits every vendor. Your strategy should reflect the size of your operation, your available resources, and your risk tolerance. That said, there are two primary paths vendors take:
Option 1: Partner With a Dedicated Chargeback Management Service
Specialist chargeback management services monitor your Vendor Central account, dispute fees on your behalf, and help you navigate the nuances of Amazon’s compliance requirements. They also review historical chargebacks — in some cases going back several years — to recover funds you may not have known were owed to you.
Many services operate on a performance-based model, charging only a flat percentage of the money they successfully recover. This means there’s no upfront investment required and you’re guaranteed a positive return.
✅ Best For: Vendors with limited internal finance resources, high chargeback volumes, or those who want expert management without adding headcount.
Option 2: Build an In-House Chargeback Management Process
Amazon does provide a dispute mechanism through the Operational Performance section of Vendor Central. Vendors can submit documentation — shipment records, packaging evidence, carrier communications — to challenge erroneous chargebacks directly.
The trade-off is time and expertise. Managing chargebacks in-house requires dedicated personnel, a solid documentation process, and ongoing familiarity with Amazon’s evolving requirements. For vendors with high-volume shipments, this often means hiring or designating a specific finance or operations manager for the role.
✅ Best For: Vendors with existing finance or operations bandwidth, recurring management needs, or those who prefer a close working relationship with the person overseeing their chargeback process.
4 Best Practices to Avoid Amazon Chargebacks
Prevention is always more cost-effective than dispute resolution. These four practices will significantly reduce your chargeback exposure:
- Review and Compare Purchase Orders WeeklyDemand fluctuates quickly. Conduct weekly reviews of your Vendor Central analytics to identify discrepancies between incoming POs and your inventory levels. Adjust proactively to avoid overstocking, understocking, or shipping mismatches that trigger chargebacks.
- Optimise Your Operational EfficienciesMany chargebacks stem from avoidable operational errors. Invest in training programs to keep your operations team current on Amazon’s prep, labelling, and shipping requirements. Implement multi-layered quality control before any carton leaves your warehouse, and review your WMS to ensure streamlined order processing.
- Maintain Regular Contact With Your Vendor ManagerSchedule recurring touchpoints with your designated Vendor Manager or Brand Specialist. These conversations keep you informed on policy changes, allow you to ask clarifying questions, and help you resolve potential issues before they become chargebacks. Note: Vendor Managers typically will not intervene in specific chargeback disputes, but they are invaluable for operational guidance.
- Master Amazon Vendor AnalyticsGet comfortable with Amazon’s Vendor Analytics and Operational Performance dashboards. These tools contain patterns and trend data that can alert you to emerging issues early — giving you the chance to course-correct before chargebacks accumulate. Regular analysis helps you align your strategy with real performance data, not assumptions.
How to Dispute an Amazon Vendor Central Chargeback
If you believe a chargeback has been applied in error, you have the right to dispute it. Here’s what the process looks like:
Step 1: Locate the Chargeback in Vendor Central
Navigate to the Operational Performance section of Vendor Central. Find the chargeback in question and review the details, including the chargeback type, the relevant shipment or purchase order, and the fee amount.
Step 2: Gather Supporting Documentation
Your dispute is only as strong as your evidence. Depending on the chargeback type, you’ll need documentation such as:
- Shipment records and tracking confirmations
- Proof of packaging compliance (photos, SOPs)
- ASN submission confirmations
- Carrier communications and appointment records
- Invoices submitted via approved channels
- Weight and dimension measurements for carton compliance
Step 3: Submit Your Dispute
Submit your dispute through the Operational Performance dashboard along with your supporting documents. Amazon will review the case and either approve the reversal or uphold the chargeback.
📁 Documentation Best Practice
Keep thorough records of invoices, ASN submissions, shipping confirmations, and carrier communications for at least 12–18 months. The more detailed your records, the stronger your dispute case will be.
Stop Letting Chargebacks Eat Your Margins
Whether you want to dispute existing chargebacks or build a process to prevent future ones, the right strategy makes all the difference.
Frequently Asked Questions
What is a chargeback on Amazon Vendor Central?
An Amazon Vendor Central chargeback is a financial penalty Amazon applies when a vendor violates its operational policies — for example, submitting inaccurate ASNs, shipping overweight cartons, or failing to meet prep standards. Amazon deducts the chargeback amount directly from vendor payments, often including an additional fee on top of the original transaction cost.
How much do Amazon chargebacks typically cost vendors?
According to cost transformation data, Amazon chargebacks can cost vendors up to £5,000 for every £100,000 of revenue generated. Globally, the total cost to Amazon vendors has been estimated at £4.8 billion. Even a small number of chargeback incidents per quarter can result in thousands of pounds in annual losses.
Can I dispute an Amazon Vendor Central chargeback?
Yes. Vendors can dispute chargebacks through the Operational Performance section of Vendor Central. To succeed, you’ll need to submit supporting documentation that proves compliance — such as shipment records, proof of packaging, carrier communications, or invoices. Keeping 12–18 months of detailed records significantly improves your chances of a successful dispute.
What is the difference between a prep issue and a packaging compliance chargeback?
A prep issue chargeback occurs when products fail to meet Amazon’s safe shipping requirements — such as missing bubble wrap, inadequate bagging, or insufficient cap seals on liquids. A packaging compliance (carton information) chargeback relates to labelling errors: damaged labels, missing carton labels, or labels with inaccurate information that can’t be scanned by Amazon’s systems.
What are Amazon’s carton weight and size limits?
Amazon’s standard limits are a maximum of 63.5cm on any single side and a maximum weight of 23kg per carton. Products that are naturally larger than these dimensions may be exempt. For items that need to ship in their own container (SIOC), separate limits apply: over 45.5 × 34.0 × 26.5cm or 12.3kg requires SIOC certification.
How do I avoid No Show chargebacks?
No Show chargebacks occur when a carrier misses a confirmed delivery slot without prior cancellation — often because they’ve consolidated orders or changed routing. The best prevention is maintaining proactive communication with your carriers and ensuring that any delivery slot changes are booked and cancelled accurately through Amazon’s Carrier Appointment Request Portal.
What is an ASN and why does it cause chargebacks?
An ASN (Advance Shipment Notification) is a digital document submitted to Amazon before a shipment arrives at a fulfilment centre. It details the contents, packaging, and expected arrival of a shipment. Any inaccuracies — in quantity, carton content, weight, or timing — will automatically trigger an ASN accuracy chargeback. Submitting accurate, on-time ASNs for every shipment is essential.
This guide is for informational purposes only. All chargeback fees and thresholds are subject to change by Amazon. Always refer to your current Vendor Central Resource Centre for the latest requirements.