Amazon is tightening its vendor compliance policies with new chargeback categories and high return rate policies, impacting vendors in significant ways. These changes, set to roll out in July 2025, will require vendors to adjust their fulfillment, invoicing, and inventory strategies to avoid penalties and optimize profitability.In this blog, we’ll explain what’s changing, how it affects your business, and how you can stay compliant with Amazon’s new requirements.

Understanding the New Amazon Chargeback Policies

Amazon has introduced a new “In Full Delivery” chargeback category, consolidating previous penalty types like Not Filled, Overage, and Down-Confirmed into one structure. The new rules have specific implications for inventory management, shipping accuracy, and invoice matching.

What Are the New Chargeback Categories?

• Not Filled (5%): Shipping fewer units than confirmed on the PO will now result in a 5% chargeback, down from 10%.
• Overage (100%): Shipping more units than ordered will result in a 100% chargeback on the overage quantity.
• Down-Confirmed (3%): Adjusting PO quantities outside the 5-day window will result in a 3% chargeback.

The Impact of High Return Rates on Vendors

With Amazon’s new high return rate policy, products flagged as frequently returned will now incur unsold inventory returns at the vendor's expense. Vendors must now be proactive in managing return rates to avoid costly penalties and ensure inventory turnover.Ready to streamline your strategy?At Big Internet Ecommerce, we specialize in helping vendors navigate chargebacks, return policies, and inventory management. Book a consultation today to stay compliant and protect your profits.Follow BIE on Instagram &Linkedin to stay updated with the trends.