Amazon calculates ASN accuracy and receiving chargebacks using the supplier’s 7-day defect rate. This rate shows how many units had defects compared to total units received. The chargeback applies to the total cost of all defective products in your shipment.
For example, if a shipment arrives without an advance shipment notice and contains only one product, the supplier pays the chargeback percentage on that product's cost (see the chart below). If the shipment contains 5 products, the supplier pays the chargeback percentage on the combined cost of all 5 products.
Sub-Infraction | Compliance Rate: Above 95% | Compliance Rate: 70-95% | Compliance Rate: Below 70% |
Multiple Submitted ASNs | 2% PCOG | 4% PCOG | 6% PCOG |
Late ASN | 2% PCOG | 4% PCOG | 6% PCOG |
Pending ASN Submission | 2% PCOG | 4% PCOG | 6% PCOG |
ASN Structure Mismatch | 2% PCOG | 4% PCOG | 6% PCOG |
Missing Expiration Date | 2% PCOG | 4% PCOG | 6% PCOG |
Expiration Date Is Less Than 30 Days | 100% PCOG + $2/unit | 100% PCOG + $2/unit | 100% PCOG + $2/unit |
Expiration Date Is Too Close To Expiry | 2% PCOG | 4% PCOG | 6% PCOG |
Expiration Date Is Too Far In The Future | 2% PCOG | 4% PCOG | 6% PCOG |
Pallet/Box Scannable Label Does Not Match ASN | 2% PCOG | 4% PCOG | 6% PCOG |
Missing ASN | 2% PCOG | 4% PCOG | 6% PCOG |
In this new method, suppliers are rewarded for keeping a higher compliance rate and punished for falling short.
