In this article, learn about:
2025 dispute types and timeline changes
The effect of this timeline change on Amazon 1P suppliers
Dispute timeline changes and settlement disputing at Amazon
Significant changes have been implemented in Vendor Central that are fundamentally altering how 1P vendors can manage and recover revenue from shortage deductions and other financial claims.
While these are not official policy-level changes documented in the vendor terms and conditions, they are hard-coded into the Vendor Central’s dispute management and have a direct, immediate impact on vendors’ ability to recover revenue. Adapting to these new rules is essential for maintaining financial health and operational efficiency.
2025 Dispute Types and Timeline Changes
The most critical change is a new time limit on disputing certain claims. Amazon has implemented a strict two-year disputing limit window for all Purchase Quantity Variance (PQV) and Purchase Price Variance (PPV) disputes.
A Purchase Quantity Variance (PQV) or shortage is issued when the quantity shipped is less than the quantity ordered on the Purchase Order (PO). If the quantity on a PO is greater than expected or possible for shipping, adjust the quantity accordingly in the Purchase Order Acknowledgment (POA).
A Purchase Price Variance (PPV) deduction is triggered when a supplier invoices Amazon for items at a higher cost than the cost listed on the PO. When prices on a PO are different from what is expected, suppliers are required to not confirm the PO. Rather the item cost should be edited in Vendor Central before acceptance.
This means that any claims or re-disputes for invoices older than two years are now automatically rejected by the dispute management system. This change has been confirmed in North America and is rapidly expanding to other global regions.
The two-year time limit is according to the invoice date itself.
Related Reading: What is a Deduction at Amazon?
The Effect of this Timeline Change on Amazon 1P Suppliers
This update significantly shortens the previous look-back window, which, in some cases, extended up to five years. For vendors, this translates to an immediate reduction in the amount of historical revenue that can be recovered.
While the financial impact on overall revenue might be minimal, given that older invoices often have lower recovery rates and are likely to already have been disputed at least once, it forces a complete shift in strategy towards a more proactive and timely approach to shortage and PPV claims.
Along with revenue taking a hit, estimated recovery rates will be affected, so it is important to remain vigilant in monitoring disputes and proactive with disputing.
Dispute Timeline Changes and Settlement Disputing at Amazon
Another major effect of this change on suppliers is the settlement disputing process, in which large, lump-sum agreements are used to resolve multiple outstanding deductions.
The ability to file a settlement is no longer a standard option for 1P suppliers in Amazon. Instead, they are now only possible on a case-by-case basis and require specific engagement.
Vendors can now only submit a settlement case if they have an assigned Amazon Vendor Services (AVS) or a dedicated vendor manager.
In some cases, a settlement may be initiated directly by Amazon's internal FinOps team under the Global Strategic Program (GSP). This program is a proactive initiative by Amazon and cannot be opted into by vendors. When a vendor is part of the GSP, a dedicated team will reach out to them via email to facilitate a settlement.
For vendors without an assigned manager who are not part of the GSP, the only path to recovering funds is through individual, item-level disputes, making proactive dispute management even more crucial.
The combination of the two-year time limit on shortage claims and the restricted access to settlements necessitates a fundamental change in how vendors manage their deductions in Vendor Central. It's no longer viable to let deductions accumulate and attempt to recover them years later. Instead, the focus must be on real-time reconciliation and prompt dispute submission to ensure all legitimate claims are filed within the limited window.
Dispute Shortages Automatically with SupplyPike
As proactively disputing shortages becomes more important, some suppliers are automating this process entirely by partnering with SupplyPike. Schedule a demo to see if SupplyPike is a good fit for you.