Operator glossary
Vendor chargebacks
The deductions Amazon takes from vendor invoices for operational infractions — late ASNs, wrong labels, missed delivery windows — the silent percentage that separates gross and net 1P margin.
Vendor Central operates on compliance codes: advance shipment notices filed late, carton labels wrong, PO windows missed, prep deviations — each generates an automatic deduction against your invoices. Individually small, collectively they routinely shave meaningful points off vendor margin, and many vendors never reconcile them.
The defense is dispute discipline: chargebacks are contestable within windows, evidence wins reversals, and patterns are fixable at the warehouse SOP level. A quarterly chargeback audit — grouping deductions by code and attacking the top two causes — is standard money recovery in 1P operations.
The numbers
- Common codes: ASN timing/accuracy, carton and pallet label compliance, PO on-time delivery windows, prep and packaging deviations.
- Deducted automatically from invoice payments; disputable within defined windows with evidence.
Related terms