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New: Amazon Vendor In Full Delivery Chargebacks

KhooCommerce News
18 July 2025 08:25

Amazon Vendor are introducing a new chargeback type "In Full Delivery". This is a new chargeback type that mostly replaces the previous "PO on Time Accuracy" Chargeback. 

In Full Delivery comprises of three subtypes:

  1. Not Filled
  2. Down Confimed
  3. PO Overage.

 

The previous "Not on Time" Chargeback is now turned into it's own separate charge type.

 Let's look at the detailed view on each of these sub types. 

  Not Filled PO overage Down confirmed
Reason Fewer units shipped than were confirmed. More units shipped than were ordered. Order items rejected too late into the ship window.
Amount 5% of cost of goods sold (COGS) for the quantity difference 100% of cost of goods sold (COGS) for the chargeback quantity 3% of COGS for the chargeback quantity
Number of units affected Order confirmed quantity minus order invoiced quantity.  Invoiced quantity minus order confirmed quantity.  Number of units rejected after ship window start plus five business days
Exception Waived if the previous trailing 12-week average fill rate is above 95% None. Requires 100% compliance with ordered purchase order quantities None. Requires 100% compliance, within five business days from the start of the hand-off window for quantity adjustments.
How to prevent this chargeback 1. Ship the exact quantity confirmed in your purchase order. Confirm units before you send the ASN.

2. Ensure the PO confirmation, ASN and Invoice all match and are aligned. 		 1. Confirm the units you are sending and ensure that you do not fulfil more than what was ordered. 

2. Ensure catalogue up to date to prevent accidental misalignment of order item quantities. 		 1. Ensure that any reductions to the PO are submitted within 5 days of the ship window starting. Eg if the window is Monday to Sunday you have until Friday midnight to ensure changes are made. 

2. Leverage EDI 855 in combination with your ASN 856 DESADV message to ensure that any cancellations at the dispatch stage are accurately reflected inside Amazon. 

 

Detailed Charge Breakdown 

In Full Delivery Covers:


1) Not Filled - 5% COGS charge will be waived if trailing rate is above 95% for previous 12 weeks rolling.


2) Down Confirmed - 3% COGS charged for any cancellations made after 5 days into ship window starting. Eg if your ship window is Monday-Sunday, any changes after Friday Midnight will incur charges.


3) PO Overage (newly added) = 100% COGS shipped for extra units invoiced that were not ordered or confirmed. In other words you are giving Amazon your stock.

 

To Dispute Charges - Use EDI Logs as Evidence

Disputing these charges requires the EDI messages for PO, POA, ASN and Invoice that you transacted with Amazon and when. These provide a digital audit trail of the units that were ordered, accepted, shipped and invoiced and timestamped appropriately. Your EDI provider will be able to signpost you to how you can source these from your system. 

See also: What is EDI?

Amazon will check for chargebacks either at the Invoice due date, or the ship window end date +120 days, whichever is soonest. 

Best Practices:

  • Stick to the original PO and never ship more than the original purchase order quantity.
  • Review and confirm purchase orders within 24 hours to prevent Auto-rejection.
  • Only confirm quantities you can actually ship, and ensure that any adjustments are made within 5 days of the ship window starting. 
  • Maintain accurate inventory levels - this will help your PO acceptance accuracy as well as Amazon ordering (if you use a COSTINV feed to send this into Amazon)
  • Submit ASNs promptly, and ensure that the corresponding invoices align with what was shipped, not just what was ordered. 
  • Keep documentation of all purchase order confirmations and changes. (NB the transmission logs inside VC only persist 90 days, so keep your own records here).

 

Not on Time Charges are unchanged but separate.  

The Not on Time chargeback is unchanged in it's logic but is now separate as a standalone chargeback type. It is charged as 3% COGS if the Trailing 4-week rate was below 90% on time for the units below this threshold. To Avoid this, the Carrier requested Delivery date (PrePaid) or Freight Ready Date (Collect) must be within the shipping window.

(See our recent guide on Carrier Requested Date vs Freight Ready date here)

See our recent guide on Carrier Requested Date here.

 

 

Want some help? Please send us a message and we'd be happy to help! 

Link to Amazon's guide on the topic

 

Reduce Shortages, Chargebacks and Admin Time.

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