Important Chargeback Updates from Amazon for VC Clients

Important Chargeback Updates from Amazon for VC Clients

7.23.20 – Hello from Ideoclick, 
For those brands selling on Vendor Central, we wanted to share the following chargeback updates from Amazon:

1.  Effective immediately, Amazon is increasing the financial charge associated with Carton Content Accuracy chargebacks from $0.50/unit to $1.50/unit. This chargeback is surfaced when the products or the product quantities in a carton Amazon received does not match the information in the Advance Shipment Notification (ASN). Please note that the date listed in the communication from Amazon (below) has been confirmed as a typo.
 
2. Pickup accuracy chargeback for Collect Shipping is being relaunched. At this time, there is no information on the associated financial charge associated or the go-live date, so we recommend that you begin monitoring for this chargeback type in the Operational Performance dashboard in Vendor Central and stay tuned for more information be released later this year.  

The following related information below was provided by Amazon:  

Fee Increase Carton Content Accuracy Amazon has audited the costs of resolving mismatches between product quantities received in a carton and the information provided in the Advance Shipment Notification (ASN). The current Carton Content Accuracy chargeback rate does not cover our operating costs; therefore, it is necessary to increase the rate by 50c to $1.50 per defect. This fee change is effective from August 26, 2019 (sic).

For more details about this chargeback, review the Help topic under Vendor Operational Performance (Chargebacks) > Chargebacks – Problems With the Receive Process > About Carton Content Accuracy.  

Pickup Accuracy chargeback change for Collect shipping: Amazon has relaunched the Pickup Accuracy chargeback for Collect shipments involving truckload (TL) volumes. You will not incur charges yet for this chargeback, but you should closely monitor it, as we will be enabling this chargeback later in the year.  

Missed pickups have negative impacts on Amazon’s supply chain. When Amazon schedules a pickup for Collect vendors, it plans the optimal carrier, allocates transportation capacity, and reserves fulfillment center (FC) labor and dock. Any failure to meet the scheduled pickup time makes Vendor Lead Time (VLT) volatile, disrupts carrier planning, elevates transportation costs, creates capacity issues, and eventually jeopardizes our mutual goal to maintain optimal inventory levels to serve customer demand.  

This chargeback will be applied to Collect TL shipments where we have GPS tracking of the pickup to confirm the carrier’s arrival at your site.

How will this chargeback work?
If you are a Collect vendor, you will receive the confirmed pickup date and time of your TL shipments from Amazon.
You will have until 5:00 p.m. PST on the day prior to the scheduled pickup time to reschedule the pickup, if you cannot accommodate the time given. If you reschedule after 5:00 p.m. PST on the day prior to the scheduled pickup, you will incur this chargeback. If you do not reschedule, the carrier arrives on time, and your freight is not ready or you are unable to load the carrier in the expected timeframe, you will incur this chargeback. Follow the instructions in the Routing Request emails from Amazon to request a reschedule.

How you can prevent this?
1. Always confirm the planned pickup time given after routing for pickup to ensure that you can accommodate the pickup date and time. If you are not able to accommodate the given pickup time, reschedule the pickup before 5:00 p.m. PST on the day before the scheduled pickup date.
2. Ensure that your facility operating hours are up to date so that shipments are not scheduled outside of your facility’s operating hours.
3. Ensure that your freight is ready when the driver arrives at the scheduled time. (Note: Drivers must be loaded within 60 minutes of their scheduled arrival time.)  

Your Partners,   The Ideoclick Team
For additional information on staying up to date on chargeback updates from Amazon and how Ideoclick helps clients optimize operational compliance, please contact us.
Multiple Amazon Updates for Sellers, including Prime Day

Multiple Amazon Updates for Sellers, including Prime Day

7.15.20 – Hello from Ideoclick, 

We have multiple Amazon updates for sellers (both Seller Central and Vendor Central) we wanted to make sure you’re aware of this week.

Prime Day

Although an official date for Amazon Prime Day has not yet been announced, communication from Amazon Vendor Central explains that POs for approved Prime Day deals will begin in August. Our estimation is that Prime Day will be held during the first or second week of October. 

For Seller Central clients, plan to start increasing your inventory position on FBA four to six weeks prior to October 1st. 

For Vendor Central clients, Amazon stated that you should expect to receive POs for approved deals in two phases starting at the beginning of August. 

FFP/SIOC Chargeback Grace Period Extension

Amazon has announced that it will extend its grace period on the SIOC minimum dimensions chargeback. The SIOC exemption rule will now be effective 1/1/2021. For visibility to which ASINs are likely to be eventually affected, you will notice them under “waived” status in Vendor Central chargeback notices. The main point is that the baseline SIOC requirements have not changed, meaning that an ASIN with packaging larger than 18″ x 14″ x 8″ or greater than 20 lbs will require SIOC FFP certification

This is a highly detailed and confusing subject, and we are here to help you navigate it. If you need assistance, please reach out to your client success manager or contact us if you’re not already a client.

Upcoming Warehouse Limits

Please be aware that in preparation for holiday and due to the COVID pandemic, Amazon intends to apply storage limits to sellers using FBA . The limits are expected to extend to all product categories. Starting today, Amazon is removing its inventory removal fee to accommodate the new standards. This is expected to alleviate some supply chain constraints, but we don’t have information on how long the new inventory regulations will apply. 

Seller Central Visibility

Along with other Amazon updates for sellers, the company has announced that U.S. based 3P sellers must now disclose contact information publicly. The decision should help brand manufacturers identify and shut down the sale of counterfeit or unregulated goods as well as identify unauthorized sellers.

Thank you,

Your Ideoclick Team

Ops Compliance Dashboard + New Product Launch Ad Spend Guidance

7.1.20 – Hello from Ideoclick

Operational Compliance Dashboard
For many brands, the cost and complexity of selling on Amazon is squeezing margins even tighter than usual. Today we’ve officially announced the availability of our Operational Compliance Dashboard which helps Amazon Vendor Central clients alleviate non-compliance charges to reduce some of the affiliated costs. If you are not already familiar with our operational compliance services, feel free to connect with your client success team to learn more.

OC Dashboard - CB Overview 2

This view of Ideoclick’s Operational Compliance Dashboard displays the type of Amazon Vendor Central chargebacks and the top affiliated purchase orders, fulfillment centers, and ASINs.

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New Product Launch on Amazon – How to Determine the Duration of Ad Spend Boost
Ideoclick Marketing Director David Quesenberry outlined some guidelines to help determine the necessary length of time for increased product launch ad spend in this recent article.  

Thank you,  Your Ideoclick Team