Chargeback Excellence
Due to our team’s insistence on being proactive as opposed to reactive with our clients’ operational processes and consistently providing recommendations to ensure they are following Amazon’s guidelines correctly, we have been able to significantly reduce our partners’ chargeback rates across the board.
The Challenge
At the beginning of the year, our operations team began identifying and seeking to mitigate common chargebacks our clients were experiencing across the board, including Rejected POs, PO On-Time Accuracy, Carton Content Accuracy, Prep, and ASN Accuracy.
Our Solution
Rejected POs: GO worked with ISMs to submit temporary PO exclusions for high volume ASINs that were still out of stock.
PO On-Time Accuracy: GO pressed 3PLs to follow Amazon’s best practices and encouraged consistent communication between GO, 3PLs, Amazon, and carriers.
Carton Content Accuracy: GO took a hands-on approach by looking at labels and ASN data to see if they were matching.
Prep: GO became more involved in the resolution process, submitting cases to have prep reevaluated and sending images to Amazon that showcased how products were packaged and shipped to get Prep fees removed.
ASN Accuracy: GO developed a process to audit missing ASNs prior to shipments being received, allowing vendors to alert Amazon in time to be compliant.
Results
We have significantly reduced our partners’ chargeback rates across the board.
0.90%
chargeback % of COGs for
all of GO's U.S. brands
-0.10% YoY
0.59%
chargeback % of COGs for
all of GO's Canadian brands
-0.41% YoY
Amazon considers being below 5% “Fair” or “Good” performance within Vendor Central depending on the chargeback type. Best-in-class defect rate is 1%.