5 reasons why vendors could dispute Amazon Chargeback claims
Every vendor knows that chargeback fees are part and parcel of selling on Amazon. So much so that many vendors just accept them without even first considering why they got one in the first place, but also with no thought of disputing them. From technical errors to packaging problems, Amazon will charge vendors for almost anything. Honestly, chargebacks are a pretty bad deal all around and can take weeks or even months to settle. However, don’t simply write off chargebacks! They can be seen as unfair and may brands feel at the mercy of Amazon, but don’t forget, you have the right to fight the chargeback.
Those who challenge Amazon’s claims may find themselves in a better position than those who do not. You may not win every claim, but it’s worth it trying. Below are 5 excellent reasons that vendors might want to consider disputing their Amazon chargeback fees.
1. The average vendor loses a whopping £3,000 per month from Amazon chargebacks
Molzi’s analytics team has crunched the numbers and determined that the average vendor loses this hefty sum to chargebacks and don’t bat an eyelid. Elsewhere if you were charged £3,000 and you would challenge it or at least question it, chargebacks should be the same.
2. Amazon may suspend your account if it happens too often
Mostly suspensions happen in relation to the cancellation rate chargeback. If Amazon believes that you can’t hold up your end of the bargain because you keep cancelling orders or you can’t ship the correct number of units, Amazon may suspend working with you. You will lose a major revenue source, especially if the majority of your business is on Amazon. Prevent a loss of revenue (on top of hefty fines) and ensure that you dispute the claim!
3. Sometime Amazon makes a mistake
Amazon may be huge, but as any big brand knows, the larger the company, the harder it is to keep an eye on everything. Despite automation, warehouse employees are human and can make mistakes when receiving your shipment. Mistakes are known to happen and if you don’t dispute a chargeback claim, then who is to say you won’t be charged for it time and time again?
4. What do you have to lose other than time?
Vendors already consider chargebacks as guaranteed losses on their balance sheets, so there is no harm in trying to dispute them. You won’t lose any more money to a chargeback by disputing it and if you’re prepared with the right documentation, there is a good chance Amazon will give you some of it back. However, it’s key that you are prepared and this can take time. If you don’t have the resources in-house, an Amazon agency can dispute claims on your behalf.
5. You might find a way to improve your operations
Disputing chargebacks can actually be beneficial for your vendor account, despite having to pay the fine. If you understand why you are being charged, whether it is a mistake or not, you can begin to assess ways to fix it from happening again. Ultimately, you may be able to make your operational and logistical departments run smoother than before. This could have a very positive knock-on effect throughout your organisation and possibly even improve your relationship with Amazon! A good relationship with Amazon will only be to your benefit as you may even get better deal at your annual contract discussion.
Is Amazon ignoring your chargeback disputes?
Amazon can be notoriously difficult in accepting vendor chargeback disputes. Disputing these fines require a lot of time to get all your paperwork and supporting documents in order. However, brands needs to be smart about chargeback fees. Don’t simply write-off these fees! Chargebacks generally cost 240% the amount the customer originally paid you. These fees include; the purchase price, shipping and handling, taxes, payment processing fees, band or credit card association fees, any fees for Amazon representing you to the card issuer, any other fees or penalties involved. Can your brand afford not to dispute these claims?
We are here to help vendors right chargeback fees to protect their bottom-line. Our Amazon logistics team understand the importance of how much money can be lost due to strict guidelines and minor mistakes. This is why we offer our clients a service to dispute any unfair chargeback claims. We have the skills, experience and the relationship with Amazon to fight on your behalf. Contact us today to see how we can help dispute your vendor chargebacks and even help stop your chargebacks altogether!