Changes to Vendor Central Preparation Chargebacks: June 2022

On May 9^th Amazon announced two upcoming changes to Vendor Central Chargebacks. We’d like to break down both changes and discuss what this means for Vendors starting in June 2022.

What is a Preparation Chargeback?

A preparation chargeback is when Vendors are non-compliant in one or more areas of Shipment Preparation. This includes Bagging, Suffocation Warning, Bubble Wrap, ASIN stickering, Set Creation, Boxing, Taping, Opaque Covering, Cap-seal, and Hanger Removal. Staying compliant with all preparation policies is in the best interest of Vendors, as chargeback fees eat into profit margins.

What are the two upcoming changes?

1. New Cap Seal Chargeback:

Starting in June, the new Cap Seal sub-type of preparation chargeback will take effect. A Cap Seal chargeback gets applied when liquid products are not cap sealed. This Chargeback was created to encourage vendors to follow Cap Seal guidelines for liquid/liquid adjacent products.

2. New Chargebacks Rates:

Preparation Chargeback rates are changing in June. Many factors go into shipment preparation, all of which can lead to a chargeback fee when done incorrectly. If you are non-compliant in one or more of the following areas, you risk facing preparation chargebacks:

• Bagging: Stays $0.85 per unit
• Suffocation Warning: Changing $0.72 --> $0.63
• Bubble Wrap: Changing $1.14 --> $1.26
• ASIN Stickering: Changing $0.69 --> $0.71
• Set Creation: Changing $1.03 --> $0.97
• Boxing: Changing $1.64 --> $1.61
• Taping: Stays $0.66
• Opaque Covering: Changing $1.05 --> $0.95
• Cap-seal: New sup-type $0.82
• Remove Hanger: Changing $0.80 --> $0.58

Rates are changing to reflect the current cost of preparation non-compliance. If you have struggled with receiving preparation chargebacks, now is the time to put a plan in place to ensure you stay compliant.

How can vendors avoid chargebacks?

We highly recommend that Vendors review each of the above preparation compliancy areas to ensure you are staying compliant and in turn, avoiding preparation chargeback fees. If you believe you were wrongly charged, Vendors can file a dispute.

To read more about mitigating the rise of these chargebacks, read our recent blog Mitigating the Rising Threat of Chargebacks. 

With the constant updates in online marketplaces, it’s important to stay up-to-date with the latest changes. If you are a client looking for additional information, contact your strategist or if you are interested in learning more about how Retail Bloom can assist your brand efforts in online marketplaces, schedule a consultation with our team. 

For more updates on marketplaces, visit our full Marketplace Updates content gallery.