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.