Problems with POs: Chargeback Prevention Guide
This guide covers the eight purchase order chargeback types Amazon issues around quantity confirmation, fulfillment accuracy, on-time shipment, and invoicing. They fall into three groups: In Full Delivery (down confirming, under-shipping, or over-shipping a PO), On-Time Shipment (missing shipment identifiers, late pickups, and pickup accuracy for Collect shipments), and two standalone chargebacks — Paper Invoices and Rejected PO Rate. For each, you'll find what triggers it, how to avoid it, the current rate card, and the documentation Amazon requires if you need to dispute a charge.
- In Full Delivery: Down Confirmed
- In Full Delivery: PO Not Filled
- In Full Delivery: PO Overage
- On-Time Shipment: Missing or Incorrect Single Shipment Identifier
- On-Time Shipment: Not On Time
- On-Time Shipment: Pickup Accuracy
- Paper Invoices Chargeback
- Rejected PO Rate Chargeback
1. In Full Delivery: Down Confirmed
A down confirmed chargeback is issued when you reduce a PO-ASIN quantity after the stipulated timeline — specifically after the five business day hand-off window for quantity adjustments has closed.
What triggers this chargeback
Triggered when a vendor down confirms a PO-ASIN quantity — reducing the committed quantity — after the hand-off window has passed. The factor assessed is ship quantity. Any quantity reduction must occur within five business days from the start of the hand-off window; late adjustments are not accepted.
Rate: 3% of COGS on the chargeback quantity. Compliance required: 100% within the 5-day hand-off window — there is no automatic waiver.
Exceptions
No chargeback if a documented extension was approved by Amazon prior to the hand-off window closing. Down Confirmed requires 100% compliance within five business days from the start of the hand-off window — there is no automatic waiver for partial compliance.
How to avoid this chargeback
- Submit any quantity adjustments within five business days from the start of the hand-off window.
- Review and confirm purchase orders within 24 hours — identify quantity issues early.
- Only confirm quantities you can actually ship to avoid needing last-minute reductions.
- Maintain accurate inventory levels and flag availability issues before the hand-off window opens.
- Keep documentation of all approved extensions in case of dispute.
Rate card
| Chargeback type | Shipment mode | Rate | Quantity basis | Compliance required |
|---|---|---|---|---|
| In Full Delivery — Down Confirmed | All modes | 3% of COGS | Chargeback qty | 100% within 5-day window |
Required documentation for dispute
- Purchase order confirmation
Original confirmed PO showing the initial agreed quantity before any adjustment.
- Documentation of approved extensions
Any Amazon-approved extension documentation confirming the adjusted hand-off deadline.
Approved submission
Down confirm submitted within the 5-day hand-off window with approved extension documentation on file. Adjustment properly documented and processed before the window closed.
Denied submission
Down confirm submitted after the hand-off window closed — the late adjustment is not accepted. No approved extension documentation provided: 3% COGS chargeback applied to adjusted units.
2. In Full Delivery: PO Not Filled
A PO not filled chargeback is issued when you ship fewer units than confirmed in your purchase order. The shipment quantity on your ASN and invoice must match the confirmed PO quantity.
What triggers this chargeback
Triggered when the shipped quantity on your ASN or invoice is less than the quantity confirmed in your purchase order. The factor assessed is ship quantity. Never ship more or less than the original PO quantity without prior confirmation from Amazon.
Rate: 5% of COGS on the chargeback quantity. Compliance required: ≤5% 12-week average defect rate.
Exceptions
No chargeback if the shortage was caused by an Amazon fulfillment center error confirmed in writing. Chargebacks will be automatically waived for a given week (Monday to Sunday) if the previous 12-week average "in full delivery" defect is 5% or less.
How to avoid this chargeback
- Never ship more or less than the original purchase order quantity.
- Review and confirm purchase orders within 24 hours of receipt.
- Only confirm quantities you can actually ship — do not over-confirm.
- Maintain accurate inventory levels to avoid shortfalls at pick time.
- Submit ASNs promptly and keep documentation of all PO confirmations and changes.
Rate card
| Chargeback type | Shipment mode | Rate | Quantity basis | Compliance required |
|---|---|---|---|---|
| In Full Delivery — PO Not Filled | All modes | 5% of COGS | Ship quantity | ≤5% defect (12-wk avg) |
Required documentation for dispute
- Purchase order confirmation
Screenshot of the confirmed PO in Vendor Central showing the agreed quantity.
- ASN
Advance Shipment Notification showing the shipped quantity matching the PO.
- Invoice for the PO-ASIN
Invoice submitted for the relevant PO and ASIN confirming the billed quantity.
- BOL / POD files
Bill of Lading or Proof of Delivery confirming the quantity shipped and received.
Approved submission
ASN and invoice quantities match the confirmed PO — no shortfall detected. BOL confirms the full shipment quantity was tendered to the carrier on time.
Denied submission
ASN shows 190 units shipped against a confirmed PO of 300 — a 110-unit shortfall. No documentation provided to explain the shortage; chargeback applied.
3. In Full Delivery: PO Overage
A PO overage chargeback is issued when you ship more units than originally ordered in the purchase order. Excess units create fulfillment and inventory complications for Amazon.
What triggers this chargeback
Triggered when the shipped quantity exceeds the PO quantity. The factor assessed is ship quantity. Shipping excess units — even partially — triggers a 100% COGS chargeback on the overage units. Amazon requires 100% compliance with ordered PO quantities — no tolerance for overage.
Exceptions
No chargeback if the overage was caused by an Amazon system error or an incorrect PO quantity issued by Amazon, confirmed in writing. There is no automatic waiver — PO Overage requires 100% compliance with ordered quantities, and all overage units are subject to chargeback.
How to avoid this chargeback
- Always ship exactly the quantity confirmed on the PO — never more.
- Review and confirm purchase orders within 24 hours and lock quantities before pick.
- Only confirm quantities you can ship exactly — avoid rounding up at the warehouse.
- Maintain accurate inventory controls to prevent accidental over-picking.
- Submit ASNs with the exact PO quantity and keep all PO confirmations on file.
Rate card
| Chargeback type | Shipment mode | Rate | Quantity basis | Compliance required |
|---|---|---|---|---|
| In Full Delivery — PO Overage | All modes | 100% of COGS | Overage qty | 100% — zero tolerance |
Required documentation for dispute
- Purchase order confirmation
Screenshot of the confirmed PO showing the original ordered quantity.
- ASN
Advance Shipment Notification showing the shipped quantity for comparison against the PO.
- Invoice for the PO-ASIN
Invoice submitted for the relevant PO and ASIN confirming the billed quantity.
- BOL / POD files
Bill of Lading or Proof of Delivery confirming quantity shipped and any Amazon-authorized adjustments.
Approved submission
ASN and invoice match the confirmed PO quantity exactly — no excess units shipped. BOL confirms only the ordered quantity was tendered to the carrier.
Denied submission
ASN shows 260 units shipped against a confirmed PO of 200 — a 60-unit overage. 100% COGS chargeback applied to all 60 excess units; no documentation can waive overage.
4. On-Time Shipment: Missing or Incorrect Single Shipment Identifier
A missing or incorrect single shipment identifier defect is triggered when the submitted advance shipment notification (ASN) does not have a single shipment identifier — PRO, BOL, or Amazon reference number — or has an incorrect identifier that does not map with any appointments.
What triggers this chargeback
Triggered when the submitted ASN doesn't contain a single shipment identifier (PRO, BOL, or Amazon reference number), or the identifier provided is incorrect and doesn't map to any existing appointments. The root cause is typically an incorrect identifier entered at ASN submission, causing a mismatch between the ASN and the carrier appointment record.
- Incorrect identifier — the most common trigger; the PRO, BOL, or ARN on the ASN doesn't match any carrier appointment record.
- Missing identifier — the ASN was submitted without any shipment identifier field populated.
- Carrier-modified PRO/BOL — if the carrier changes the PRO or BOL after submission, resubmit the ASN immediately with the updated identifier.
Rate: 3% of COGS on the chargeback quantity. Compliance required: 95% 12-week rolling average.
Exceptions
No chargeback if the identifier mismatch was caused by an Amazon system error or carrier-side modification, confirmed in writing. Chargebacks incurred during a given week (Sunday to Saturday) will be automatically waived if the previous 12-week average compliance is 95% or higher — otherwise, dispute individually.
How to avoid this chargeback
For Collect Shipments:
- Provide accurate Amazon reference numbers on your ASNs before trailer check-in.
- Verify the ARN on your ASN matches exactly the number issued in the routing confirmation — do not manually type or abbreviate.
- Submit the ASN before trailer check-in — late submissions increase the risk of identifier mismatches.
For Prepaid Shipments:
- You and your carriers must provide the same single shipment identifier (PRO or BOL) on both the ASN and the appointment signal before trailer check-in.
- If the PRO or BOL is modified by the carrier, resubmit the ASN with the updated identifier immediately.
- Confirm identifier alignment between your internal WMS and the carrier's appointment record before departure.
Rate card
| Chargeback type | Shipment mode | Rate | Quantity basis | Compliance required |
|---|---|---|---|---|
| Missing or Incorrect Single Shipment Identifier | All modes | 3% of COGS | Chargeback quantity | 95% (12-week avg) |
Required documentation for dispute
- Screenshot of the ASN
A screenshot of the ASN submitted in Vendor Central, clearly showing the shipment identifier field (PRO, BOL, or ARN) and submission timestamp.
- PRO or BOL
The actual PRO number or Bill of Lading document from the carrier, confirming the correct identifier used for the shipment.
- Purchase order information
The relevant PO number(s) associated with the shipment, confirming the shipment was tied to a valid, open purchase order.
- Carrier appointment screenshot
Screenshot of the carrier appointment confirmation, showing the identifier used matches the one on the ASN submitted to Amazon.
Approved submission
ASN screenshot shows a matching PRO number — the identifier on the ASN aligns exactly with the carrier appointment record. BOL and PO information submitted together confirming valid shipment identity.
Denied submission
ASN submitted with a missing identifier — no PRO, BOL, or ARN populated in the shipment notification. Carrier appointment screenshot shows a different PRO number than the one on the ASN — mismatch confirmed.
5. On-Time Shipment: Not On Time
You may receive a chargeback if your Collect shipments are not picked up within your purchase order window. These chargebacks exist to keep the supply chain running smoothly and maintain accurate inventory for customers.
What triggers this chargeback
Triggered when the freight-ready date on your Collect shipment falls outside the ship window specified on your purchase order. Amazon uses the Amazon reference number from your routing request to link it with your ASN and compare the freight-ready date against your PO's ship window.
Rate: 3% of COGS on the chargeback quantity. Compliance required: 95% 12-week rolling average.
Exceptions
No chargeback if the pickup delay or reschedule was caused by Amazon. Chargebacks are automatically waived for any week where your 12-week average compliance is 95% or higher — otherwise, you can dispute individual chargebacks.
How to avoid this chargeback
- Submit your ASN before trailer check-in with accurate ARN, PO, ASIN, and quantity.
- Request pickup through routing within the ship window on your purchase order.
- Ensure your Amazon reference number (ARN) on the ASN matches the one on your routing request — mismatches risk a chargeback even if freight was ready on time.
Rate card
| Chargeback type | Shipment mode | Rate | Quantity basis | Compliance required |
|---|---|---|---|---|
| Not on time | Collect | 3% of COGS | ASN quantity | 95% (12-week avg) |
Required documentation for dispute
- Routing proof
Evidence that routing was submitted at least 24 hours before the ship window closed, and that the freight-ready date and pickup date were within the ship window for the ARN on the chargeback — a Vendor Central screenshot or the XML/text copy of the EDI 753 transmission.
- ASN proof
Your ASN showing the Amazon reference number, PO, ASIN, and quantity — either a Vendor Central screenshot or the XML/text copy of the EDI 856 transmission.
Approved submission
Routing email clearly shows the Scheduled Pickup Date, Amazon Reference Number (ARN), and matching PO — all within the ship window.
Denied submission
Routing email shows a freight-ready date (FRD) outside the ship window, and the submission was missing ARN or PO information.
6. On-Time Shipment: Pickup Accuracy (Collect Shipments)
A pickup accuracy chargeback is issued when a Collect shipment is rescheduled by the vendor after 5 p.m. PT the day before the scheduled pickup date, or when the carrier arrives and is unable to load due to a vendor-caused issue that results in a missed pickup.
What triggers this chargeback
Triggered when a Collect truckload (TL) or less-than-truckload (LTL) shipment is rescheduled by the vendor after 5 p.m. PT the day before the scheduled pickup date, or when the carrier arrives at the vendor's location (backed by GPS arrival data) and is unable to load due to a vendor-caused issue that results in a missed pickup.
Rate: $500 per truckload missed pickup (TL), $55 per LTL missed pickup. Compliance required: 100% weekly (Mon–Sun).
Exceptions
Collect shipments will not incur chargebacks when pickup delays or reschedules are caused by Amazon. Chargebacks incurred during a given week (Monday to Sunday) require 100% compliance to be automatically waived.
How to avoid this chargeback
1. Confirm pickup time in advance
- Confirm the scheduled pickup time after routing.
- If the time can't be met, reschedule before 5:00 PM PT the day before the pickup date.
2. Keep facility operating hours up to date
- Make sure your facility's receiving hours are accurate in the system.
3. Be ready when the driver arrives
- TL: must be loaded within 90 minutes of arrival. LTL: must be loaded within 30 minutes of arrival.
- Have freight prepped and staged in advance.
Rate card
| Chargeback type | Shipment mode | Rate | Quantity basis | Compliance required |
|---|---|---|---|---|
| Pickup Accuracy | Collect — TL | $500 / shipment | Missed pickup events | 100% (weekly) |
| Pickup Accuracy | Collect — LTL | $55 / shipment | Missed pickup events | 100% (weekly) |
Required documentation for dispute
- Carrier communication records
Correspondence with the carrier confirming pickup scheduling, reschedule requests, or arrival details.
- Facility hours documentation
Evidence of your facility's operating hours at the time of the missed pickup.
- Routing request confirmation
Screenshot or copy of the routing request submitted in Vendor Central prior to the pickup date.
- Pickup confirmation or proof of readiness
ASN screenshot or photos taken at the warehouse with visible timestamps confirming freight was staged and ready.
Approved submission
Carrier communication confirms the reschedule was submitted before 5:00 PM PT the day prior — within the allowed window. Warehouse photos with timestamps show freight was staged and ready upon driver arrival.
Denied submission
Reschedule request was submitted after 5:00 PM PT — outside the allowable window, so the chargeback applies. No timestamp photos or proof of readiness provided; carrier GPS data confirms arrival but no load was possible.
7. Paper Invoices Chargeback
A Paper Invoice chargeback occurs when you submit invoices to Amazon using a method other than an approved electronic invoicing option. Amazon requires all invoices to be submitted electronically — either via EDI (AS2 or FTP format) or through the Create Invoice feature in Vendor Central.
What triggers this chargeback
Triggered whenever invoices are submitted using a non-electronic method — paper mail, fax, or any channel outside Amazon's approved electronic invoicing systems. The factor assessed is invoices.
Rate: fixed fee per invoice violation. Compliance required: 100% electronic submission only.
Approved electronic invoicing methods
- EDI Invoicing: Electronic Data Interchange using AS2 or FTP format. Transmit EDI 810 invoice files directly to Amazon's systems and confirm with your EDI provider that the transmission is acknowledged.
- Vendor Central — Create Invoice: web-based invoicing through the Create Invoice feature in Vendor Central. Log in, navigate to Invoices, and submit directly through the portal interface.
Exceptions
No chargeback if the paper invoice was submitted due to a documented Amazon system outage preventing electronic submission, confirmed in writing by Amazon. There is no minimum unit threshold exception — every non-electronic invoice submission is subject to the chargeback regardless of order size.
How to avoid this chargeback
- Always use an approved electronic method to submit invoices — EDI (AS2/FTP) or Vendor Central Create Invoice.
- Confirm your EDI transmission is acknowledged by Amazon's system before considering an invoice submitted.
- Train your finance team to never send paper, fax, or email invoices to Amazon under any circumstances.
- If EDI is unavailable, log in to Vendor Central and use the Create Invoice feature as a backup.
Rate card
| Chargeback type | Trigger | Rate | Compliance required |
|---|---|---|---|
| Paper Invoices | Non-electronic submission | Fixed fee / invoice | 100% electronic |
Required documentation for dispute
- Vendor Central screenshot
A screenshot from Vendor Central showing the invoice was submitted through the Create Invoice feature, including timestamp and invoice number.
- EDI file
The XML or text copy of your EDI 810 transmission file, including the transmission acknowledgment (997/999) confirming Amazon received it electronically.
Approved submission
Invoice submitted via EDI 810 (AS2 format) — electronic method confirmed with transmission acknowledgment on file. Vendor Central screenshot shows accepted status — no paper submission involved.
Denied submission
Invoice received via physical mail — no EDI file or Vendor Central submission on record. No electronic transmission acknowledgment provided; chargeback applied per invoice.
8. Rejected PO Rate Chargeback
The Rejected PO Rate chargeback is based on the rate — over 20% — at which you reject or backorder the units of a product that Amazon orders from you. If you accept an order but reject more than 20% of the quantity in a given PO, Amazon will reduce your purchase price by 3% of COGS for all units over this 20% threshold.
What triggers this chargeback
Triggered when you reject or backorder more than 20% of the units Amazon orders from you in a given PO. The factor assessed is your confirmation rate. The 3% reduction applies to all units over the 20% threshold, regardless of the reason for rejection — soft or hard.
Rate: 3% of COGS on units over the 20% threshold. Rejection threshold: 20% max rejection per PO.
Exceptions
This chargeback will not apply to an order of a product if the total product units ordered from you in the 12 months preceding the PO submission date are less than the minimum unit threshold for that product category. For example, for a baby product, if Amazon has ordered less than 5,000 units over the prior 12 months, the chargeback will not apply to that product's order. The minimum unit threshold is determined by product category.
How to avoid this chargeback
1. Use the correct acknowledgment codes
- Use hard rejection codes for permanently unavailable products — avoids chargeback and signals Amazon to stop ordering.
- Avoid soft rejection codes unless absolutely necessary — these trigger the chargeback.
2. Manage temporary unavailability proactively
- Treat temporary issues (e.g. out of stock) as soft rejections — chargeback applies.
- Treat permanent discontinuation as hard rejections — no chargeback, but Amazon may stop ordering.
- If temporarily unavailable, proactively inform Amazon of expected restock dates so they can pause ordering.
3. Monitor system-generated orders
- Amazon systems may continue to send POs after you've marked items as unavailable — regularly check and communicate availability updates.
Rate card
| Chargeback type | Factor | Rate | Quantity basis | Threshold |
|---|---|---|---|---|
| Rejected PO Rate | Confirmation Rate | 3% of COGS | Units over 20% rejection | >20% rejection per PO |
Required documentation for dispute
- Line-level confirmation rate
Detailed confirmation rate data at the line level showing accepted and rejected quantities per ASIN on the disputed PO.
- 13-week confirmation rate history
Historical confirmation rate report covering the prior 13 weeks to demonstrate compliance trend and context for the rejection.
- 12-month order volume
Total unit order volume for the product over the 12 months preceding the PO submission date — relevant for the minimum unit threshold exception.
- Acknowledgment codes used
Record of the acknowledgment codes applied to the rejected units, confirming whether hard or soft rejection codes were used.
- Screenshot of PO confirmation
Screenshot from Vendor Central showing the PO confirmation screen with confirmed and rejected quantities, ASIN details, and submission timestamp.
Approved submission
Rejection rate is 14% — below the 20% threshold, with correct hard rejection codes used, so no chargeback applies. 13-week confirmation rate history shows consistent performance above threshold.
Denied submission
Rejection rate is 30% — exceeds the 20% threshold, and a soft rejection code was used, so 3% COGS is applied to the excess 10%. 13-week rate at 68% — no minimum unit threshold exception applies; chargeback confirmed.
For more information on this topic download the attached one-pagers at the bottom of this article.
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