A label may be present, but that does not always mean it is useful. If a barcode is covered, wrinkled, duplicated, placed over a seam, or competing with another label, Amazon may not be able to scan and process the shipment efficiently.

That is where a seemingly minor warehouse issue becomes something much bigger: delayed receiving, inventory discrepancies, chargebacks, shipment investigations, and avoidable internal firefighting.

For Amazon Vendors, label placement is part of shipment quality control.

Why Label Placement Matters in Amazon Vendor Operations

Amazon fulfilment centres are built for speed, consistency, and scan accuracy. They are not designed for interpretation.

When a carton, pallet, or shipment arrives, the information needs to be clear, visible, and easy to process. If warehouse teams or automated systems are faced with duplicate barcodes, covered labels, damaged labels, or conflicting identifiers, the receiving process becomes slower and more vulnerable to error.

This matters because Amazon Vendor shipment compliance does not only depend on whether the right information exists somewhere on the box. It depends on whether that information can be used quickly and accurately at the point of receiving.

In high-volume environments, one poor label placement decision can be repeated across hundreds of units. What starts as a small operational inconsistency can quickly become a wider receiving issue.

Common Amazon Vendor Label Placement Mistakes

Most label placement problems are not caused by carelessness. They usually happen because warehouses are busy, processes are split across teams, and shipments are being prepared under pressure.

The most common Amazon Vendor label placement mistakes include:

• Labels placed over carton seams
• Carrier labels covering Amazon labels
• Old labels left visible on reused cartons
• Wrinkled, damaged, or poorly printed labels
• Duplicate barcodes or conflicting shipment references
• Barcode hierarchy mismatches between units, inner packs, and case packs
• Labels placed too close to carton edges
• Labels applied to unstable or curved surfaces
• Labels inside reflective plastic pouches
• Pallet labels hidden beneath stretch wrap

Each issue may seem minor in isolation, but every one of them can create scanning problems once the shipment reaches Amazon's fulfilment network.

Labels Placed Over Carton Seams

One of the most common label placement errors is applying a barcode across a carton seam, edge, or fold.

The label may look readable when it leaves the warehouse, but cartons move, bend, compress, and shift during handling and transport. A barcode placed across a seam can distort, split, or become unreadable by the time it reaches Amazon.

Amazon specifically recommends placing labels in the middle of the carton panel rather than over seams, folds, corners, or edges. SSCC labels should not be placed on the top of cartons and should remain at least 5 cm from carton edges wherever possible.

The safer approach is to apply labels to a flat, stable surface where the barcode remains visible and scannable throughout the shipment journey.

Carrier Labels Covering Amazon Labels

Carrier alignment is another major part of Amazon Vendor compliance.

A shipment may leave the warehouse with the correct Amazon labels applied, only for a carrier label to be added later in a position that covers or partially blocks the Amazon barcode. This creates confusion at receiving because the most important identifier may no longer be visible or easy to scan.

Warning labels can create the same problem. While they may be required for handling purposes, they should never obscure carton or pallet labels.

This is why Amazon Vendor teams need clear alignment with carriers and third-party logistics partners. Everyone involved in the shipment flow needs to understand which labels must remain visible and which areas of the carton or pallet should be avoided.

Old Labels Left Visible

Reused cartons can create problems when old labels, obsolete barcodes, or previous shipment references are left visible.

This is especially risky when old labels are still scannable. Amazon fulfilment centre teams and systems need clear information, not a choice between several possible identifiers.

Before dispatch, teams should remove or fully cover any outdated labels so the carton only presents current, relevant shipment information.

Wrinkled, Damaged, or Poorly Printed Labels

A barcode does not need to be completely destroyed to create problems. Slight distortion, poor print quality, moisture damage, or uneven application can all make a label harder to scan.

This is particularly important where labels are applied quickly, printed in batches, or attached to dusty, damp, or unstable packaging surfaces.

Many labelling issues originate with print quality. Amazon specifically advises against using inkjet printers because labels are more susceptible to smearing and blurry barcodes. Dirty printer heads are also a common cause of scan failures.

Labels printed using coloured ink can reduce scan accuracy, while metallic labels should be avoided entirely.

A simple pre-dispatch visual check can help catch these issues before they become Amazon receiving problems.

Packaging Can Affect Label Scanning Too

Even correctly printed labels can become difficult to scan if they are packaged incorrectly.

Amazon specifically advises against placing carton labels inside transparent plastic pouches because reflections can interfere with barcode scanning.

Labels should remain flat, visible, and easy to scan throughout transport, handling, and receiving.

Barcode Hierarchy Mistakes Create Receiving Problems

Not all barcode issues are placement issues.

Sometimes the barcode is perfectly visible, but it represents the wrong level of packaging.

For example:

• A case pack may display the barcode for the individual unit inside.
• An individual unit may display the barcode intended for the outer case pack.
• A master carton may share the same barcode as the products it contains.

These mistakes can create receiving accuracy issues because Amazon's systems may interpret the shipment at the wrong packaging level.

A case pack intended to contain six units may be received as a single unit. Likewise, a single unit may be interpreted as an outer pack quantity.

The result can include:

• Inventory discrepancies
• Shortages
• Receiving delays
• Payment inaccuracies
• Additional investigations

Amazon requires each packaging level to accurately reflect its contents. Where duplicate barcodes exist across packaging hierarchies, inappropriate barcodes should be covered to prevent scanning errors.

This is another example of how a seemingly small labelling decision can create much larger receiving issues downstream. We explore the wider receiving process in our Ultimate Guide to Amazon Receiving Accuracy and Receive Process Compliance.

Overlabelling Creates Operational Confusion

Overlabelling deserves its own attention because it often comes from good intentions.

Teams add extra labels because they want to reduce risk, improve visibility, or make the shipment easier to identify. The problem is that more labels do not always create more clarity.

In Amazon Vendor operations, overlabelling can create:

• Duplicate barcode references
• Conflicting shipment identifiers
• Scan confusion
• Routing delays
• Additional manual intervention
• Increased risk of receiving discrepancies

Amazon fulfilment centres are designed around clear, consistent, scannable information. When a carton or pallet contains too many visible references, the receiving process becomes more vulnerable to interpretation and error.

The goal should not be "one barcode". The goal should be the right barcodes, in the right places, with no duplicate or conflicting information around them.

Pallet Labels Matter Too

Many receiving issues occur before Amazon even reaches the cartons.

Where pallets are stretch wrapped, Amazon requires pallet labels to be applied to the outside of the wrap so they remain visible and scannable.

Labels should be applied squarely rather than at an angle and should be visible from multiple sides of the pallet.

A perfectly labelled carton cannot compensate for pallet labels that cannot be scanned at receiving.

Pallet label visibility is just one part of effective shipment preparation. We explore pallet configuration, pallet stability, mixed pallet preparation, and receiving best practices further in our Ultimate Guide for 3PLs.

What Happens When Amazon Cannot Scan Labels Properly

Poor label placement can affect much more than the physical shipment.

When Amazon cannot scan labels properly, the downstream impact can include delayed receiving, missing inventory disputes, chargebacks, supplier performance concerns, and internal investigations between warehouse, logistics, finance, and account teams.

The issue is that many of these consequences appear after the shipment has already left the vendor's control. By the time the problem is visible in reporting, the original label placement mistake may be difficult to trace.

This is why label placement should be treated as part of wider Amazon Vendor shipment compliance, rather than a final warehouse task completed at the end of the process.

How Amazon Vendor Teams Can Improve Label Accuracy

Strong label control does not need to be complicated, but it does need to be consistent.

Amazon Vendor teams can reduce label-related receiving issues by building clearer standards into their warehouse and dispatch processes.

Practical label control measures include:

• Applying labels to flat, stable carton surfaces
• Placing labels in the middle of carton panels rather than across seams or folds
• Keeping labels away from corners and carton edges
• Removing or fully covering obsolete labels
• Checking that carrier labels do not cover Amazon labels
• Avoiding duplicate or conflicting barcode references
• Ensuring pallet labels remain visible after stretch wrapping
• Avoiding transparent plastic pouches for carton labels
• Using clear pre-dispatch verification checks
• Making label placement part of shipment quality control

The key is ownership. If nobody is responsible for label accuracy, small inconsistencies can become normalised very quickly.

Amazon Receiving Accuracy and Label Compliance

Label placement is closely connected to Amazon receiving accuracy.

Once a shipment enters Amazon's fulfilment network, speed and scan accuracy become critical.

If the barcode cannot be scanned cleanly, or if the carton presents conflicting information, this can contribute to receiving delays, inventory discrepancies, and further investigation.

We explored the wider receiving process in more detail in our Ultimate Guide to Amazon Receiving Accuracy and Receive Process Compliance. That guide looks beyond labels and into the broader operational factors that affect how Amazon receives, checks, and reconciles Vendor shipments.

For many Amazon Vendors, label placement is one of the first areas worth reviewing because it is visible, practical, and relatively easy to improve. It can also reveal deeper issues around warehouse process control, carrier communication, and shipment preparation standards.

KhooCommerce Thoughts

Amazon Vendor compliance issues rarely come from one dramatic operational failure.

More often, they come from small inconsistencies repeated across teams, sites, shipments, and systems. Label placement is a clear example of this.

The label may technically be there, but if Amazon cannot scan it efficiently, the operational outcome is still the same.

If you are seeing recurring receive discrepancies, delayed receiving, or ongoing shipment investigations, it is worth reviewing the wider receiving process as well as carton and label preparation standards.

Our team help Amazon Vendors identify the small operational friction points that quietly create bigger compliance, receiving, and shipment performance issues downstream.

Amazon is extending its Vendor compliance programme with three new chargeback types: Overages, Pallet Receive Accuracy and Direct Imports.

Together with the recently separated Not on Time chargeback, they share one central theme: Amazon is charging vendors for the gap between what they say is coming and what actually arrives at the fulfilment centre.

That is important because these chargebacks are not simply transport or paperwork problems. They are information accuracy problems, and they are solved upstream within your own operations, long before a truck reaches an Amazon dock.

Vendors with disciplined internal processes and integrated systems may barely notice these changes. Vendors that rekey data between systems, or ship according to a plan rather than what was actually packed, are far more likely to start seeing deductions.

Here is what is coming, why Amazon is introducing each chargeback and what you should put in place now.

1. Overages: Shipping More Than Amazon Ordered

An Overage chargeback applies when you send more units than the quantity confirmed on the purchase order.

It can initially appear harmless. After all, surely Amazon wants more stock? From Amazon’s perspective, however, unexpected units create a genuine operational cost.

Fulfilment centres plan labour, dock appointments and storage capacity around confirmed quantities. Additional units create unplanned receiving work, reconciliation queries and stock that Amazon never agreed to buy.

Overages can usually be traced back to a disconnect within the vendor’s own operation:

• The purchase order was confirmed at one quantity, but the warehouse picked against the original order instead of the confirmed quantity.
• A quantity was amended by either the vendor or Amazon, but the change never reached the pick sheet.
• Quantities were rounded up to full cartons, layers or pallets in an attempt to be helpful.

How to Prevent Overage Chargebacks

The quantity you confirm must be the quantity your warehouse picks and the quantity declared on your ASN.

This is fundamentally a single-source-of-truth problem.

When purchase order confirmations, picking instructions and ASNs are all generated from the same system record, an overage becomes structurally difficult to create. There is no second version of the quantity that can become outdated or drift away from the confirmed order.

2. Pallet Receive Accuracy: When the Pallet Does Not Match the Paperwork

The Pallet Receive Accuracy chargeback relates to the carton-to-pallet mapping contained within your shipment data.

Your ASN tells Amazon which cartons are located on each pallet through the SSCC hierarchy. If Amazon breaks down a pallet and discovers cartons that the ASN said were located elsewhere, the shipment has failed the Pallet Receive Accuracy check.

Why Does Amazon Care About Pallet Accuracy?

Accurate pallet data allows Amazon to receive inventory more quickly.

When a pallet label reliably describes everything contained on that pallet, Amazon can potentially book the stock in at pallet level rather than opening the pallet and scanning every individual carton.

Every mismatch forces additional checks or a manual audit. This increases Amazon’s receiving costs and can also delay your stock becoming available for sale.

The most common cause is straightforward: the ASN is created from the original packing plan rather than the physical pack-out.

For example, the plan may state that carton 14 will be placed on pallet two. During packing, the carton is moved to pallet three to balance the weight, but nobody updates the shipment data.

How to Prevent Pallet Receive Accuracy Chargebacks

• Build ASNs from what was actually packed, ideally using scan confirmation as each carton is placed on a pallet.
• Print pallet and SSCC labels at the point of palletisation rather than preparing them in the office beforehand.
• Regenerate the shipment data whenever a pallet is rebuilt or re-stacked after labelling.
• Never assume an existing label is “close enough”.
• Treat last-minute changes on the warehouse floor as data events, not only physical changes.

Vendors that manage carton and pallet packing through an integrated system gain this accuracy as part of the process. The ASN becomes a direct output of the physical packing activity, meaning the shipment data cannot easily disagree with the shipment itself.

3. Direct Imports: Accuracy Across the International Supply Chain

The third new chargeback relates to Direct Import shipments where Amazon acts as the importer of record.

Full details are still to be confirmed in Amazon’s announcement, but the direction is consistent with the other chargebacks: Amazon is placing greater importance on the accuracy of the information submitted with Direct Import shipments.

Direct Import orders require more data than domestic shipments. This may include:

• Commercial documentation
• Container information
• Shipping details
• Cartonisation data
• Coordination with Amazon’s freight partners

Every additional data field creates another opportunity for a mismatch.

Errors involving international shipments can also be significantly more expensive and time-consuming to resolve. They may result in customs delays, missed vessel bookings or inventory arriving that cannot be reconciled against the information originally declared.

How to Prepare for Direct Import Chargebacks

The same operational disciplines apply, but they need to begin earlier in the supply chain.

Confirm Direct Import purchase orders promptly and accurately. Generate shipment data from the actual cartonisation and ensure the documents travelling with the shipment are produced from the same system record as the ASN and invoice.

Critical information should not be manually retyped into a separate spreadsheet or disconnected system.

We will update this guidance when Amazon publishes the full details of the Direct Import chargeback.

Every shipment reaches Amazon as a set of signals: the order confirmation, the ASN, the pallet labels, the invoice, and the physical goods themselves. When those signals corroborate each other, receiving is fast and friction-free. Chargebacks happen when a vendor’s own signals disagree: the ASN says one thing, the pallet says another. These charges reflect the real cost Amazon bears to reconcile those mismatches, but the deeper point is that they’re a course-correction mechanism, not a penalty. Vendors who send one consistent story across every touchpoint will simply never see them.

— Sajan, Senior Product Manager, Vendor Experience at Amazon

Don't Forget: Not on Time Is Now a Standalone Chargeback

Alongside these new chargebacks, vendors should remember that Not on Time now operates as a standalone chargeback.

It is typically applied when a vendor’s trailing four-week on-time delivery performance falls below Amazon’s required threshold.

We covered this in more detail in our guide to In Full Delivery chargebacks.

On-time performance can appear to be a carrier problem, but it is often caused by operational delays earlier in the process. Common issues include:

• Late purchase order confirmations
• Slow picking and packing
• ASNs being sent at the last minute
• Carrier or delivery appointments being booked too late

Vendors that shorten their internal order-to-ship cycle create additional transport buffer without increasing their carrier costs.

The Common Thread Between the New Chargebacks

Although each chargeback measures a different part of the Vendor process, they all compare the information supplied to Amazon with what actually happens operationally.

Every one of these chargebacks is ultimately a consistency check between your data and your dock.

The solution is not simply to build a better chargeback dispute process, although deductions should still be reviewed and challenged where appropriate. The more effective approach is to prevent the mismatch from existing in the first place.

In practice, this comes down to two things.

1. Strong Internal Processes

Your operation needs one confirmed version of every order quantity.

Warehouse teams should work from live information rather than printed documents that quickly become outdated. Packing and palletisation should be scan-verified, and any changes made on the warehouse floor must also be recorded within the relevant systems.

Vendors should also conduct a regular review of any chargebacks received, tracing each deduction back to its underlying operational cause rather than treating it as an isolated financial issue.

2. Connected Systems That Prevent Data Drift

When Amazon orders, confirmations, warehouse operations, ASNs and invoices flow through one connected system, accuracy no longer depends on people remembering to update several different records.

The ASN accurately describes the shipment because it was generated directly from the shipment.

The invoice matches the purchase order because both are connected to the same record.

Manual rekeying, which is the root cause of many Vendor chargebacks, is greatly reduced or removed altogether.

How KhooCommerce Helps Vendors Prevent Chargebacks

KhooCommerce connects Amazon Vendor EDI directly with your operational processes.

The platform supports:

• Purchase order confirmations
• Warehouse picking and packing
• Carton-level scanning
• Pallet-level scanning
• ASNs generated from the actual pack-out
• Invoices that reconcile automatically against the purchase order

Our customers avoid these chargebacks not by becoming better at disputing them, but by preventing the conditions that trigger them.

To understand how the new chargebacks could affect your operation, or calculate how much your current deductions are costing your business, please get in touch with the KhooCommerce team.

Orders may be confirmed correctly, ASNs may look accurate, and documentation may be complete. Yet shipments are still delayed, partially received, or refused altogether. When this happens, the root cause is rarely a single mistake. It is usually a readiness gap that only becomes visible once stock reaches the Amazon dock.

Shipment readiness is not a final checklist. It is the point where compliance, data accuracy, packaging, and timing either align or unravel.

Why Health & Beauty Shipments Are Scrutinised More Closely

Amazon applies tighter controls to Health & Beauty inbound shipments for good reason. These products carry higher customer risk and stricter regulatory expectations.

As a result:

• Inbound inspections are more common
• Documentation mismatches are flagged faster
• Non compliant stock is less likely to be waved through

What might pass with minimal intervention in other categories often results in delays or refusals here.

The Most Common Shipment Readiness Failures

Across Health & Beauty vendors, the same shipment issues surface repeatedly.

Incomplete or inconsistent prep
Products meet prep standards individually, but cartons or pallets do not. This includes missing polybags, inconsistent sealing, or mixed prep rules within the same shipment.

Carton and pallet build issues
Cartons exceed weight limits, are poorly sealed, or are stacked inconsistently. Pallets lack stability or do not meet carrier expectations.

Late changes that are not fully validated
Last minute carton splits or quantity adjustments are made to meet dispatch deadlines, but the physical shipment no longer matches the original plan.

Documentation that looks right but does not align
Packing lists, labels, and ASNs are all present, but they do not tell the same story. Amazon systems catch this quickly.

Timing Is Part of Readiness

Shipment readiness is not just about what is shipped. It is about when it is shipped.

Health & Beauty vendors often struggle with:

• Dispatching close to cut off times
• Limited buffer for corrections
• Carrier handovers that leave no room for rework

When timing is tight, teams are forced to choose between fixing issues or shipping anyway. Amazon’s systems are rarely forgiving of that choice.

Strong operations build time for validation into the workflow rather than treating it as a luxury.

Why Refusals and Shortages Often Appear Later

One of the most frustrating aspects of shipment readiness issues is delayed impact.

A shipment may leave the warehouse without issue. Days or weeks later, shortages, refusals, or compliance deductions appear. By that point:

• The physical shipment is gone
• Teams are reconstructing events from logs and emails
• The cost is already incurred

This delay often leads vendors to chase symptoms rather than causes.

What Shipment Ready Actually Looks Like

High performing Health & Beauty vendors define readiness clearly and consistently.

Shipment ready means:

• Products are prepped correctly and consistently
• Cartons meet weight, size, and strength requirements
• Labels are clear, scannable, and positioned correctly
• Quantities, expiry data, and lot information align with shipment data
• Documentation reflects the final physical build, not an earlier version

Most importantly, shipment ready is confirmed before dispatch, not assumed.

Where Readiness Breaks at Scale

At lower volumes, teams compensate with experience and manual checks. As scale increases, this approach becomes fragile.

Readiness issues emerge when:

• Multiple SKUs with different prep rules ship together
• Expiry and lot data varies across cartons
• Warehouses operate with slightly different standards
• Knowledge lives with individuals rather than processes

The shipment itself exposes these cracks.

Making Shipment Readiness Repeatable

The vendors that avoid delays and refusals do not rely on heroics. They rely on structure.

Effective practices include:

• Clear definitions of what shipment ready means
• Validation steps built into picking and packing
• Final checks that compare physical shipments to digital data
• Fewer manual interventions close to dispatch

KhooCommerce Final Thoughts

Shipment readiness is where Health & Beauty vendors either protect margin or create unnecessary friction.

If possible, separate prep-required products from prep-native products by pallet. For example you could put all your glassware/liquids on one pallet, and all the vitamins or cosmetics on another pallet. This will help Amazon’s receive paths, but isn’t always practical for your warehouse team. 

Delays, refusals, and shortages are rarely caused by bad intentions. They are caused by processes that no longer match complexity and volume.

When shipment readiness is treated as a discipline rather than a final hurdle, operations stabilise, deductions fall, and teams spend less time untangling yesterday’s problems.

Chargebacks rise. Shipments are delayed. Inventory gets stranded. Teams spend more time fixing issues than moving forward.

The problem is not growth itself. It is that the operational foundations that supported early success are rarely designed to handle scale.

Why Health & Beauty Feels Riskier as Volume Increases

Health & Beauty operates under tighter controls than most Amazon categories. Compliance, safety, and customer trust are central to how Amazon enforces rules here.

As volume grows, several pressures increase at once:

• More frequent inbound shipments
• Higher SKU counts and variations
• Greater expiry and lot complexity
• Less tolerance for inconsistency

Processes that worked at lower volume start to show strain. What was once manageable becomes fragile.

The Common Mistake Vendors Make When Scaling

When issues appear, the instinctive response is to add more checks at the end of the process.

More manual reviews. More spreadsheets. More sign offs before dispatch.

While this feels responsible, it often creates new problems:

• Slower fulfilment
• Increased reliance on individual knowledge
• Errors that still slip through earlier stages

Scaling with more manual control rarely reduces risk. It usually increases operational friction.

Where Compliance Risk Actually Increases

In Health & Beauty, compliance risk does not increase evenly across operations. It tends to concentrate in specific areas.

Expiry and shelf life management
More volume means more variation in remaining shelf life. Without clear visibility, short dated stock becomes harder to control.

ASN accuracy under pressure
As order frequency increases, ASNs are created faster and closer to dispatch. Small data gaps become more common.

Shipment consistency
More SKUs and replenishments increase the chance of mixed prep standards, carton issues, and documentation mismatches.

System fragmentation
As teams grow, data often lives across multiple tools. Inconsistencies creep in where systems do not align.

These risks are cumulative. They rarely cause immediate failure, but they steadily erode performance.

What Scalable Health & Beauty Operations Look Like

Vendors that scale successfully do not rely on working harder. They rely on working more predictably.

Strong scalable operations focus on:

• Repeatable processes rather than individual expertise
• Early validation rather than last minute correction
• Clear ownership of data rather than manual reconciliation
• Fewer handoffs where errors can occur

Why Early Validation Matters More Than Final Checks

Many compliance issues originate long before dispatch.

Expiry dates are mis captured during picking. Quantities are adjusted without being reflected digitally. Prep rules are applied inconsistently.

By the time final checks occur, fixing these issues often means delay or short shipping.

Vendors that scale without increasing risk validate data earlier in the workflow. Issues are caught when they are cheaper and easier to resolve.

Reducing Risk Without Slowing Growth

Scaling does not have to mean accepting more risk.

Effective Health & Beauty vendors:

• Align warehouse activity directly with shipment data
• Reduce manual data entry wherever possible
• Confirm shipment readiness before order confirmation
• Audit proactively rather than reactively

The Cost of Ignoring Operational Foundations

Unchecked compliance risk rarely stays small.

Over time, it leads to:

• Higher chargebacks
• Increased stranded inventory
• Lower Inventory Performance scores
• Tighter storage limits
• Slower replenishment cycles

KhooCommerce Final Thoughts

Scaling Health & Beauty on Amazon is not about avoiding complexity. It is about preparing for it.

Vendors who invest in strong operational foundations early find that growth becomes more predictable, compliance becomes routine, and teams spend less time firefighting.

Risk does not disappear as you scale. But with the right structure in place, it stops dictating your progress.

Most chargebacks linked to ASNs are not caused by dramatic failures. They are caused by small mismatches. A quantity that does not quite line up. An expiry date that differs from the physical stock. A carton count that was adjusted late in the process but never fully reconciled.

On their own, these errors feel minor. At scale, they compound quickly.

Why ASNs Matter More in Health & Beauty

Amazon treats Health & Beauty inventory as higher risk than many other categories. That risk profile changes how enforcement works.

ASNs are not just a notification of what is being shipped. They are the reference point Amazon uses to validate what arrives, what is received, and what is paid for. If the ASN is wrong, everything downstream is already compromised.

This matters more in Health & Beauty because:

• Expiry dates and lot codes are tied to ASN data
• Shortages and overages trigger faster investigations
• Reconciliation tolerances are tighter

In simple terms, Amazon assumes the ASN is correct until proven otherwise. If it is not, the cost sits with the vendor.

The Most Common ASN Errors in Health & Beauty

The same patterns appear again and again across Health & Beauty vendors.

Quantity mismatches
Cartons are short shipped, over packed, or partially adjusted, but the ASN is not updated accurately. Even a single unit discrepancy can trigger a shortage claim.

Expiry data misalignment
The physical stock is correct, but expiry dates captured in the ASN do not match what Amazon receives. This often happens when expiry is managed manually or copied between systems.

Late changes that never fully reconcile
Orders are amended close to dispatch. Cartons are split or reconfigured. The ASN reflects the original plan, not the final reality.

Mixed data sources
Warehouse systems, ERPs, and ASN tools are not fully aligned. Data is stitched together rather than flowing cleanly from one source of truth.

Why Small Errors Trigger Large Chargebacks

Amazon does not investigate ASN discrepancies manually at first. The process is automated.

If what arrives does not match what the ASN says should arrive, Amazon assumes:

• Stock is missing
• Stock is mislabelled
• Stock is not compliant

That assumption triggers deductions, not questions.

By the time a vendor reviews the chargeback, the shipment is already closed. Reconstructing what actually happened often means pulling data from multiple systems and warehouse logs, sometimes weeks later.

In Health & Beauty, where margins are already under pressure, this is how chargebacks quietly accumulate.

“ Chargebacks not only increase operational costs but also frequently lead to additional shortage claims, which further erode profit margins. This makes it all the more important to monitor chargebacks closely.

A dispute can be filed only within 30 days of the chargeback notification and requires precise, comprehensive documentation. Success rates are generally low, the process is time‑consuming, and it ties up significant internal resources.

For these reasons, it is advisable to regularly review and optimise internal processes to prevent chargebacks from occurring in the first place.

— Maximilian Späth 
Chief Sales Officer
Baros Solutions

Where ASN Accuracy Usually Breaks Down

ASN issues rarely originate in the ASN itself. They usually begin earlier.

Common weak points include:

• Manual picking adjustments not flowing back into ASN data
• Expiry or lot information handled outside core systems
• Last minute packing changes without a validation step
• Pressure to confirm shipments quickly to hit delivery windows

The ASN becomes the messenger, not the cause.

What Accurate ASN Processes Actually Look Like

High performing Health & Beauty vendors approach ASNs as a control point, not a formality.

They typically:

• Validate quantities, expiry, and lot data before ASN confirmation
• Prevent ASNs from being sent if required data is incomplete
• Align warehouse activity directly with ASN creation
• Reduce manual edits wherever possible

Accuracy is achieved earlier, not fixed later.

Why Manual ASN Handling Stops Working at Scale

At lower volumes, manual ASN handling can appear manageable. Teams spot errors, make adjustments, and move on.

As order volume increases, this approach fails quietly.

Manual ASN processes struggle with:

• Multiple SKUs with different expiry dates
• High frequency replenishments
• Distributed warehouse operations
• Time pressure close to dispatch

The result is a steady increase in deductions that are difficult to challenge.

Making ASN Accuracy Predictable, Not Painful

The goal is not to eliminate every error. It is to reduce the number of places errors can enter.

Strong Health & Beauty operations focus on:

• A single source of truth for shipment data
• Early validation of expiry and lot information
• Clear handoffs between warehouse and ASN creation
• Audits that happen before dispatch, not after chargebacks appear

KhooCommerce Final Thoughts

Amazon’s systems are unforgiving, but they are consistent and Health & Beauty vendors lose money because small inconsistencies are amplified by scale and enforcement.

Vendors who align their ASN processes with that reality gain control, reduce deductions, and spend far less time chasing historical errors.

Accuracy upstream is always cheaper than reconciliation downstream.

Amazon does not enforce expiry and lot requirements evenly across all categories. Health & Beauty sits at the strict end of the spectrum. What passes quietly in other categories is often flagged quickly here, and usually with financial consequences.

Understanding what Amazon really enforces helps vendors focus effort where it matters, rather than spreading attention too thin across every theoretical rule.

Expiry Dates Are an Operational Control, Not Just a Label

Amazon treats expiry dates as a proxy for product safety and customer trust. As a result, enforcement is less about whether an expiry date exists and more about whether it is reliable, consistent, and traceable.

Where vendors get caught out:

• Expiry dates printed correctly but not captured in systems
• Expiry data present on cartons but missing or incorrect in ASNs
• Mixed expiry dates within a single SKU shipment
• Short dated stock shipped without sufficient remaining shelf life

From Amazon’s perspective, inconsistency is the red flag. If physical labels, ASN data, and invoice information do not align, enforcement follows.

What strong vendors do differently:
They treat expiry as structured data that flows through picking, packing, ASN creation, and order approval. Expiry validation happens before confirmation, not after dispatch. Use FIFO picking strategies to ensure oldest batches are picked first and stock is rotated. 

Lot Codes Matter Most When Something Goes Wrong

Lot codes often feel low priority until there is a recall, shortage investigation, or audit. That is precisely why Amazon enforces them aggressively.

Common enforcement triggers include:

• Lot codes missing from ASN records
• Manual lot entry errors
• Lot codes applied inconsistently across cartons
• Inability to trace shipments back to specific production batches
  
  

When Amazon cannot trace inventory confidently, the burden of proof shifts to the vendor. This is where time, margin, and operational focus are lost.

What strong vendors do differently:
Lot codes are captured digitally and carried through the shipment lifecycle. They are not treated as notes or warehouse-only information. Systems are aligned so that lot data remains intact from pick to invoice.

Shelf Life Is About Remaining Time, Not Just Expiry Dates

A common misconception is that products are compliant as long as they are not expired. In reality, Amazon increasingly focuses on remaining shelf life at the point of receipt.

This becomes a problem when:

• Products ship close to expiry without awareness
• Different FCs receive stock with uneven shelf life
• Short dated inventory is mixed into standard replenishments

Even when products are technically within date, Amazon may refuse or deprioritise stock that does not meet internal shelf life thresholds.

What strong vendors do differently:
They monitor remaining shelf life, not just expiry dates. Short dated stock is identified early and handled intentionally, rather than discovered after deductions appear.

Where Enforcement Actually Happens

Amazon does not rely on a single checkpoint. Enforcement typically occurs across three areas:

1. Inbound receipt
   Labels, expiry visibility, and lot traceability are assessed when stock is received.
   
   
2. ASN and invoice reconciliation
   Discrepancies between physical goods and digital records are flagged automatically.
   
   
3. Post receipt investigations
   Shortages, recalls, and compliance audits surface historical weaknesses.

This is why issues often appear delayed. The error may have occurred weeks earlier, but enforcement only happens once data is reconciled.

Why Manual Processes Break Down at Scale

Many Health & Beauty vendors manage expiry and lot data manually at lower volumes without immediate consequences. As shipments increase, manual handling introduces unavoidable risk.

Common breaking points include:

• Spreadsheet driven expiry tracking
• Manual ASN adjustments
• Knowledge held by individuals rather than systems
• Inconsistent processes across sites or shifts

None of these fail immediately. Instead, they fail gradually, then expensively.

Making Expiry and Lot Compliance Predictable

The vendors that perform best in Health & Beauty are not doing anything exotic. They are doing fewer things manually and validating earlier.

Effective practices include:

• Capturing expiry and lot data digitally at source
• Aligning warehouse systems with ASN creation
• Preventing order approval when data is incomplete
• Auditing shelf life proactively, not reactively

KhooCommerce Final Thoughts

Amazon’s enforcement of expiry dates, lot codes, and shelf life is not arbitrary. It is consistent with the level of risk Amazon associates with Health & Beauty products.

Vendors that struggle are rarely unaware of the rules. They are usually operating with processes that no longer match their scale.

When expiry and lot handling become part of everyday operations rather than something to double check at dispatch, compliance stops being a recurring issue and becomes a baseline expectation.

The problem is rarely a lack of effort. More often, it is small process gaps that only show up once volume increases. Prep and labelling errors tend to compound quietly until Amazon flags them, by which point the cost has already been absorbed.

We’ve compiled the most common Health & Beauty compliance failures Amazon enforces, why they happen, and what strong operational teams do differently to avoid them.

1. Incorrect or Inconsistent Expiry Labelling

Expiry dates are one of the most scrutinised elements in Health & Beauty compliance. Errors here are rarely tolerated.

Common issues include:

• Bagging/Prep/Wrap requirements for glass, liquids
• Expiry dates missing from outer cartons
• Incorrect date formats
• Poor print quality or placement
• Mismatch between physical labels and ASN data

These problems usually stem from expiry handling being treated as a final step rather than a controlled process throughout picking and packing.

How to avoid it:
Expiry data should be validated at multiple points. At minimum, teams should confirm expiry dates during picking, packing, and ASN creation. Labels must be clear, scannable, and consistently positioned. If expiry validation only happens at dispatch, errors are already too late to fix.

2. Labelling That Meets the Rule but Fails in Practice

Amazon labelling requirements are clear on paper. In practice, many labels fail because they are unreadable in a warehouse environment.

Typical failures include:

• Low contrast labels that scanners struggle to read
• Labels placed over seams or folds
• Multiple labels competing for the same surface area
• Smudged or fading ink (don’t use inkjet, use thermal)

From Amazon’s perspective, a label that cannot be reliably scanned is the same as no label at all.

How to avoid it:
Test labels in real conditions. Print quality, placement, and durability matter. Teams should have clear standards for where labels go and what they must look like. If a new packaging format is introduced, labelling should be reviewed before volume shipments begin.

3. Lot Code Handling That Breaks Under Scale

Lot codes are essential for traceability, recalls, and compliance. They are also one of the easiest things to mismanage as SKU counts grow.

Common lot code issues include:

• Lot codes not captured digitally
• Manual entry errors
• Lot data missing from ASNs
• Inconsistent handling across warehouses or shifts

These issues tend to surface during audits or shortage investigations, when reconstructing shipment history becomes time-consuming and expensive.

How to avoid it:
Lot codes should be treated as structured data, not notes. Systems must capture a lot of information consistently and carry it through to ASN creation. If lot codes rely on manual intervention, risk increases with every additional SKU and shipment.

4. Prep Standards Applied Inconsistently

Health & Beauty prep requirements can vary by product type, packaging format, and fulfilment method. Problems arise when prep rules are understood but not applied consistently.

Examples include:

• Missing polybags or incorrect sealing
• Missing bubble wrap or protection on glass products
• Inadequate carton strength
• Mixed prep standards within the same shipment
• New products introduced without updated prep instructions
  
  

Inconsistent prep often leads to partial refusals, delays, or increased inspections.

How to avoid it:
Prep rules should be documented, current, and easy for warehouse teams to follow. Any new product introduction should trigger a prep review. Consistency matters more than speed when it comes to avoiding downstream issues.

5. Compliance Checks That Happen Too Late

Many vendors rely on final checks at dispatch to catch issues. By that point, fixing problems usually means delays, rework, or short shipping.

Late checks are often a sign that compliance is treated as a task rather than a process.

How to avoid it:
Strong Health & Beauty operations build compliance into the workflow. Validation happens earlier, when corrections are cheaper and easier. This includes checks at pick, pack, and ASN stages rather than relying on a single final gate.

Why These Errors Cost More Than You Expect

Individually, prep and labelling failures may seem minor. At scale, they drive:

• Repeated chargebacks
• Missed delivery windows
• Increased manual reconciliation
• Erosion of trust with Amazon

In a category where margins are already under pressure, these costs add up quickly.

Building Compliance Into Everyday Operations

Avoiding Health & Beauty compliance issues is not about perfection. It is about repeatable processes, clear visibility, and reducing reliance on last-minute fixes.

Vendors that perform well in this category focus on:

• Clear data flow between warehouse systems and ASNs
• Early validation of expiry and lot information
• Consistent labelling and prep standards
• Fewer manual touchpoints where errors can creep in

Compliance becomes predictable when it is operational, not reactive.

The rules themselves are not new. What is new is the level of detail, consistency and enforcement Amazon will apply.

Below is a clear breakdown of what is changing, what remains the same, and how vendors can prepare.

What Is Receive Accuracy

Receive Accuracy is a new chargeback category that consolidates the previous Label and ASN chargebacks. Amazon will now identify the specific root causes behind receiving issues and display them in Vendor Central. This gives vendors more transparency, but it also means Amazon will be cross-checking shipment data far more closely.

You can expect validation across:

• Label information
• ASN structure and identifiers
• Carton and pallet images
• Shipment documentation
• Physical inventory counts at the Fulfilment Centre

What Is Not Changing

The operational requirements are the same. You still need to follow the vendor manual guidelines for labeling, ASN submission and shipment preparation.

Chargeback rates remain unchanged:

• Labels: £0.12 or €0.14 per unit
• ASN: no rate change

The expectations for accuracy, however, have increased.

Timeline for the New Policy

Phase 1: Soft Launch on 1 December 2025
The new Receive Accuracy category becomes visible in Vendor Central. Vendors will see defects, but Amazon will not invoice them yet. This period is intended for process updates, training and system checks.

Phase 2: Hard Launch on 19 January 2026
Chargebacks begin. All defects found under the new Receive Accuracy category will be invoiced. Amazon will use data and images to validate these issues, so disputes will require clear evidence.

Where Vendors Commonly Get Caught Out

Receive Accuracy issues typically occur when something in the shipment lifecycle becomes misaligned. The most common risk areas include:

1. PO confirmations that drift out of sync: If your confirmed quantities do not align with what you ship, Amazon will flag it. Using structured confirmation cycles and automated EDI 855 acknowledgements reduces this risk.
2. Incorrect case pack information: If Amazon believes a case represents one unit but you have shipped six units inside it, you could be charged for overage or mismatched receiving.
3. Over-shipments: Shipping more than Amazon ordered creates immediate compliance problems. Overages used to be a separate chargeback. They are now part of a more unified accuracy framework.
4. Labels that do not meet spec or are covered by carrier labels: Even perfectly compliant labels can fail if a carrier places a second label over the top. SSCC and licence-plate labelling helps significantly.
5. ASNs that do not match the physical structure: Your ASN must reflect the exact pallet and carton hierarchy. Incorrect parent-child relationships are one of the biggest causes of ASN defects.
6. Shipment timing that falls outside the carrier or ship-window rules: Amazon compares freight ready dates, carrier requested pickup dates and ASN timestamps. Anything falling outside the approved ship window can cause issues.
7. Human error at any stage of the packing or scanning process: This includes mislabelled cartons, mixed SKUs, incorrect identifiers or changes in the warehouse that never get updated in the system.
   
   

The New Reality: Manual Processes Will Not Be Enough

Amazon is now cross-referencing:

• Shipment documents
• ASN files
• PO and POA data
• Pallet and carton photos
• Inbound quantity scans
  

Manual workflows struggle to maintain perfect alignment across all of these touchpoints. Spreadsheets, email chains and hand-built ASNs leave too much room for miscommunication and inconsistency.

To avoid Receive Accuracy penalties, vendors need:

• Accurate data at every stage
• Consistent carton structure
• Reliable label generation
• Strong PO confirmation discipline
• System-driven ASN creation
• A unified workflow between admin teams and warehouse teams
• A clean audit trail for disputes

How KhooCommerce Helps You Avoid Receive Accuracy Chargebacks Entirely

KhooCommerce was built specifically to prevent the issues Amazon is now scrutinising more closely.

Our platform ensures:

• Fully compliant Amazon labels generated automatically
• ASNs created from real warehouse activity, so structure is always accurate
• One ASN per shipment based on your configuration
• Automatic mapping of units, cartons and pallets to match Amazon’s requirements
• EDI 855 acknowledgements that keep PO confirmations in sync
• Validation checks before anything is submitted to Amazon
• Complete EDI audit logs for dispute protection
• A single workflow that unifies PO, warehouse activity, ASN creation and invoicing

This removes the need for manual data entry or last minute corrections that commonly lead to receiving errors.

Receive Accuracy chargebacks become predictable and preventable. With automation, they often disappear completely.

What Vendors Should Do Now

1. Review your PO confirmation process: Use structured confirmations and, wherever possible, EDI 855 automation.
2. Check your catalogue and case pack data: Correct data prevents overage and shortage errors at source.
3. Train warehouse teams on consistent labelling: SSCCs and licence-plate labels dramatically reduce receiving ambiguity.
4. Audit your ASN workflow: Ensure your ASN structure always matches your actual shipment.
5. Use the soft launch period wisely: Fix issues in December so you do not pay for them in January.
6. Consider whether your current processes will stand up to January’s level of enforcement: If they involve spreadsheets, manual ASNs or inconsistent warehouse communication, they probably will not.

Our Final Thoughts

Amazon is not creating new rules. It is tightening the enforcement of rules that many vendors struggle to execute consistently. Receive Accuracy will reward vendors with strong processes and clear data. It will penalise vendors who rely on manual work, inconsistent communication and reactive problem solving.

The vendors who modernise now will see fewer chargebacks, smoother inbound performance and better control of their margins. The vendors who delay will spend the first quarter of 2026 chasing down errors and disputes.

If you want help preparing for the new policy or want to stress test your existing workflow, the KhooCommerce team is ready to support you.

For pet and vitamin vendors, expiry and batch tracking often feels like the detail that derails everything. But it doesn’t have to. With the right systems, it becomes a strength that reduces waste, cuts chargebacks, and gives you more control.

What Amazon Wants and Why It Matters

Amazon expects exact batch and expiry details for every perishable product. If your SKUs are marked as perishable in the catalogue, it is your responsibility to provide that information on every line you ship.

And it’s not just Amazon. Regulations like FSMA 204 require end-to-end traceability, making accurate batch and expiry records essential for recalls and compliance audits.

Most vendors already capture this data in their ERP. The real challenge is getting it to Amazon without spending hours keying it manually.

Why EDI 856 Changes the Game

The smarter way is to send batch and expiry information through the EDI 856 Dispatch Advice (ASN).

What is EDI 856?

EDI 856, also called the Advance Ship Notice (ASN), is the electronic document Amazon Vendors must send to confirm exactly what’s in a shipment before it arrives. It carries carton counts, pallet breakdowns, item details, and batch or expiry data. In Amazon Vendor Central, using EDI 856 is the difference between manual errors and smooth, compliant shipments. It cuts chargebacks, speeds up receiving, and lets you push past the 2,000-carton limit with one accurate message.

Instead of manual entry, the EDI message automatically includes:

• Batch or lot number
• Expiry date
• Manufacture date
• Best before date
  

When this is built into your dispatch flow, the right data is transmitted every time, no matter how many lines or batches are on the shipment. It is faster, more accurate, and scales with your business.

Capture Once, Use Everywhere

To make this work, you need to capture expiry and batch data early and keep it flowing through your systems.

• On receipt or production: Log batch and expiry details as goods are produced or received. That way, they are visible across the lifecycle.
  
• On outbound: Scan expiry and batch data during dispatch. A GS1-128 barcode can hold GTIN, batch, and expiry in one simple linear code, or you can use a 2D data matrix for compact encoding. Scanning removes human error.
  
• Integration: The scan data feeds into your ERP and flows into the EDI 856 message, so Amazon receives exactly what you shipped.
  
  

An example GS1-128 Linear (1D) barcode that captures the GTIN (09506000134352), Batch (AB1234) and expiry (250930)

 This can also be represented in a 2D Data matrix:
 

Why Spreadsheets Hold You Back

Many vendors lean on s preadsheets as a safety net. But once you’re managing hundreds or thousands of cartons, they create more problems than they solve. A single mistyped digit and your ASN no longer matches reality.

By linking your ERP, warehouse, and Vendor Central, updates happen automatically. Dashboards and alerts give your team visibility without endless manual checking.

From Compliance to Advantage

Batch and expiry tracking isn’t just a box-ticking exercise. When you can see which products are nearing expiry or selling faster than forecast, you can plan promotions, adjust production schedules, and manage stock proactively instead of reactively.

In other words, it stops being admin and starts being business intelligence.

Quick Wins

• Capture batch and expiry at production or goods-in.
• Make sure your packaging and scanners can read GS1-128 or 2D codes.
• Use EDI 856 to send expiry and batch data to Amazon automatically.
  
  

The Bottom Line

Batch and expiry tracking will never be glamorous. But when the data is accurate, the batches traceable, and the shipments compliant, the stress disappears.

With the right systems in place, you replace 2am spreadsheet fixes and last-minute relabelling scrambles with smooth shipments, fewer chargebacks, and confidence that Amazon has exactly what it needs.

At this level, the fundamentals aren’t the problem. The real challenge is keeping everything under control without burning out your team or your margins.

Get Batch and Expiry Tracking Right

For categories like pet food, supplements, canned goods, or coffee, batch and expiry tracking isn’t optional. Amazon is demanding more accurate data than ever before, and with thousands of cartons in a single order, the pressure is high.

The issue isn’t usually collecting the data, it’s making sure it’s accurate and consistent at every stage. Problems creep in when ASN details don’t match the actual goods, expiry dates are missed, or batches aren’t tracked properly on the outbound.

What helps:

• Capture batch and expiry data at production or inbound receipt, not just at despatch.
• Sync data automatically between ERP, warehouse, and Vendor Central.
• Use dashboards to spot products nearing expiry so you can act before they become a problem.
• Send lot and expiry information through the EDI 856 Dispatch Advice to keep Amazon’s records aligned with your own.
  

Get this right and you’ll reduce waste, avoid relabelling costs, and keep vendor performance scores looking healthy.

Push Past the 2,000-Carton Limit

Vendor Central’s interface caps shipments at 2,000 cartons, but that doesn’t mean your growth has to stop there. By using EDI 856 Dispatch Advice, you can bypass the limit and ship thousands of cases under a single ASN. Many vendors comfortably manage up to 15,000 cases this way, essentially a full truckload.

To succeed, your EDI and warehouse systems need to handle not just batch tracking but also the full packaging hierarchy (item, package, pallet, and shipment). With ASN version 2, having up-to-date systems in place is essential.

Case Packs, Margins, and Compliance

When you’re shipping at scale, even small inefficiencies add up. Case pack configuration is a classic example: one poorly designed pack can mean wasted space, extra prep work, or rejected loads.

Keep case packs under control by:

• Auditing them regularly for compliance issues.
• Planning pallet density and minimum order quantities together, so one doesn’t undermine the other.
• Checking deduction patterns if the same SKU keeps triggering chargebacks, the case pack might be the culprit.

A small tweak to a barcode or case size can make the difference between repeat deductions and smooth deliveries.

Chargebacks: Don’t Accept Them as Normal

Every vendor gets chargebacks, but at high volumes they can drain margins fast. The key is to stop seeing them as unavoidable and start treating them as a fixable part of the process.

Vendors who manage this well tend to:

• Categorise chargebacks by type: labelling, ASN, timing.
• Identify repeat offenders by SKU or warehouse.
• Put alerts in place so problems are flagged before they repeat.

The more visibility you have, the easier it is to challenge unfair charges and prevent avoidable ones.

Move Beyond Spreadsheets

Spreadsheets might work for small operations, but once you’re handling shipments in the thousands, they hold you back. Updates get missed, batch records don’t line up, and your team spends more time fixing mistakes than preventing them.

The fix is straightforward:

• Automate connections between ERP, warehouse, and Vendor Central.
• Use dashboards for real-time visibility on POs, expiry dates, and deductions.
• Free your team from firefighting so they can focus on running the operation.
  

Scaling Without Losing Control

Volume alone isn’t the problem. It’s the pressure of managing expiry, packing rules, and deductions all at once, while every mistake costs more the bigger you grow.

The good news: with the right systems, you don’t have to let the 2,000-carton rule hold you back. By centralising your data, automating your tracking, and making EDI 856 Dispatch Advice the backbone of your operation, you can move shipments at scale, stay compliant, and protect your margins all without piling on admin.

Your strategy to reduce shortages requires proactive vendor operations. We’ve outlined practical steps that licensed merchandise vendors can take to reduce shortages and stay on the right side of Amazon’s ever-tightening supply chain rules.

Why Do Shortages Happen?

Shortages on Amazon Vendor Central often stem from preventable misalignments between what Amazon orders and what vendors ship. Common causes include:

• Manual receipt process at Amazon
• Labelling defect
• Packing inaccuracy
• Catalogue defects (case pack vs single)
• Carrier loss, over-labelling, or damage
• Issues with mixed-SKU cartons or multi-pack configurations

For vendors managing hundreds or even thousands of SKUs tied to fast-moving licences, these problems compound quickly.

If this sounds familiar, you’re not alone. We explored some of these mixed carton and SKU-level challenges in Managing Mixed Cartons: How Toy & Game Vendors Can Avoid Amazon Chargebacks and Inventory Management Strategies for Toy Vendors.

Dig deeper into shortage-specific issues—

1. Start with Data: Monitor Shortage Patterns

Before you can fix a shortage problem, you need to know where and why it’s happening. Begin by analysing:

• What is the total magnitude of shortages for the last 12 months?
• Are there specific ASINs triggering shortages most frequently?
• Are shortages happening during specific periods or year-round?
• Are there patterns in DC location or carrier (e.g. small parcel vs pallet)?

Use Amazon’s Vendor Central reports to track trends over time. If you're seeing consistent issues across the same SKUs, it’s likely a structural rather than seasonal problem.

2. Streamline Your Confirmations and ASN Process

Confirming orders quickly and accurately is essential to reducing the risk of shortages. A late confirmation, or worse, a confirmation that doesn’t match what you can actually ship, can create a domino effect across the supply chain.

Consider:

• Automating PO confirmation and shipment creation as much as possible
• Utilising EDI order confirmation, ASN, and invoicing so that what is accepted, shipped, and billed are fully aligned
• Setting up your warehouse team with License Plate Receive-compliant labels for correct dispatches
• Implementing exception alerts for partial fulfilments or shorted lines
• Using your ERP or EDI tools to validate shipment data before sending ASNs
• Beginning the pick-pack-ship process early to check for shortages; use barcode scanning where possible to validate accurate picks
  

The fewer manual interventions, the better. KhooCommerce can help automate these touchpoints, saving time while improving accuracy.

3. Clean Up Your Internal PO and SKU Mapping

One of the most common culprits behind shortages is mismatched PO and catalogue data. If Amazon’s PO requests don’t align with how your ERP recognises pack sizes, units of measure, or configuration codes, you’ll end up with fulfilment mismatches.

Ensure:

• Your ERP or inventory system matches the SKU structure Amazon uses.
• Case packs and singles are being shipped and labelled correctly.
• Mixed cartons are labelled with the right identifiers.
• Case packs and inner packs are correctly labelled and accounted for.
  

The goal is to create what we call “data harmony” between systems. We dive deeper into these principles in the Ultimate Amazon Vendor Guide, particularly in the sections on case configuration and shipment validation.

4. Revisit Your Safety Stock Strategy

Holding too much stock eats margin. Holding too little costs orders. For licensed merchandise, where demand can spike without much warning, dynamic stock planning is essential.

Start by:

• Segmenting SKUs by seasonality and velocity
• Creating tiered safety stock levels based on Amazon’s forecast accuracy (or inaccuracy)
• Building in supplier lead times for made-to-order or low-volume lines
  

If you’re still managing this on spreadsheets or guesswork, it might be time to look at smarter demand planning tools or at least integrating more structured forecasting into your operations.

5. Collaborate With Amazon, Proactively

Don’t wait for shortages to stack up before taking action. Reach out to Amazon Vendor Managers or Support when you spot repeat shortage issues on specific SKUs or DCs.

Provide:

• Data showing historical fulfilment accuracy
• Evidence of systematic issues (e.g. misrouted POs, forecast inconsistencies)
• Proposed solutions or changes to your catalogue setup
  
  

The more data-led and proactive you are, the more likely you are to get traction and protect your vendor scorecard.

Next Steps: Turn Insight into Action

Smarter decisions start with early action: aligning your systems, cleaning up SKU data, and improving stock visibility across your team and partners.

If you’re already feeling the strain of Amazon’s shortage penalties, or struggling to keep up with shifting forecasts, here are a few resources worth bookmarking:

• The Ultimate Amazon Vendor Guide – A deep dive into packaging, PO alignment, and operational best practice
• Managing Mixed Cartons – Why carton errors are one of the most common triggers for chargebacks and shortages
• Inventory Management Strategies for Toy Vendors – Tips on keeping SKU-level data clean, accurate, and Amazon-ready

A shipment goes out a mix of towels in different colours, or jumpers in four sizes and three SKUs per carton. Everyone assumes it’s fine. The ASN was filed. The carton was packed. The PO matched… more or less.

Then Amazon flags it. A shortage here. A mismatch there. A few dozen units “missing” even though the warehouse confirms they were shipped. Your finance team starts chasing chargebacks. The operations team starts triple-checking ASNs. And no one’s quite sure where it went wrong.

Sound familiar?

If you’re a houseware, apparel, or textile vendor selling through Amazon Vendor Central, you already know how quickly mixed SKU cartons can unravel. They’re efficient, until they aren’t.

So, how do successful vendors stay ahead? 

Start with the carton, not the system

Many vendors assume the problem is technical, some glitch between their ERP and Amazon. But often, it starts with the physical carton. Or more accurately, a lack of clear rules around how it should be built.

Can SKU X and SKU Y go in the same box? Are they from the same family? Does the PO reflect that mix, or was it “close enough”?

The vendors who avoid regular shortages are the ones who treat mixed-SKU cartons like a product in themselves with logic, consistency, and documented rules.

The disconnect between what’s packed and what’s declared

A big source of errors? The carton is right, but the ASN isn’t.

Maybe the SKU labels were changed last-minute. Maybe the ASN was copied from an old template. Or maybe your 3PL packed something correctly but failed to report it in the format Amazon needs.

It's not enough to get the shipment out the door. If what you tell Amazon doesn’t match what shows up, you’ll wear the penalty regardless of fault.

The fix? Less manual intervention, more validation, and clear separation between system roles: one team packs, one team checks, and the system verifies before anything gets submitted.

Your 3PL is only as good as the brief you gave them

We’ve seen it dozens of times: a vendor blames their 3PL for packing errors, only to realise the warehouse was never given updated SKU configuration rules. The carton logic was stored in someone’s head or on a spreadsheet that hasn’t been touched since Q3 last year.

If your warehouse or 3PL doesn’t know:

• Which SKUs can be packed together
• What label goes where
• How Amazon expects multi-packs and assortments to be listed
  
  

… then errors are inevitable.

What works better? A shared, visual “carton rules” guide. Something any pick/pack team member can follow without needing to be an Amazon Vendor expert. Simple, repeatable, visual.

The cost isn’t just chargebacks, it’s operational drag

Even if you recover the lost revenue, there’s a bigger cost: time.

Each shortage triggers a sequence of admin: reconciling the PO, rechecking stock, contacting Amazon support, raising internal queries, adjusting reports, calming stakeholders.

Now multiply that by 5 or 10 times a month.

As we covered in Mastering Catalogue Complexity, catalogue size is only part of the issue. It’s the lack of structured logic and automation that drains vendor teams most.

The vendors who build consistent processes around their mixed-SKU logic and treat their data as seriously as their products recover faster and grow more predictably.

So what’s the real strategy?

You can’t magic away the fifteen sizes and eight colourways, but you can stop them turning into a spreadsheet horror show.

• Define carton rules and stick to them
• Align what’s packed with what’s declared
• Automate your checks wherever possible
• Give your 3PL a chance to succeed by sharing clear guidance
• Track where issues come from and fix the pattern, not just the instance
  
  

Build a smoother shipment process

Start here.