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Amazon Implements New Non-compliance Chargeback Called No Show

Amazon Implements New Non-compliance Chargeback Called No Show

Amazon leads large top retailers in tightening their EDI vendor compliance requirements with several EDI updates and added chargebacks in summer 2017. Amazon just released a unified chargeback earlier in August called “PO On-time Accuracy”, and now another right on its tail. The newest compliance change requires strict adherence to confirmed delivery slots and threatens large penalties and fees for any appointment that is not cancelled or rescheduled in advance, thus explaining the title “No Show”.

Read about Amazon’s last compliance update PO On-time Accuracy Here.

The No Show Chargeback Breakdown

  • Notifications began August 14, 2017
  • No charges from Amazon will be accrued until October 16, 2017
  • Fees are $250.00 for Truckload (TL) and $90.00 for Less Than Truckload (LTL)
  • Only relevant to Prepaid TL and LTL Shipments
  • Collect shipping program users will not be affected by No Show
  • Duplicate appointments are subject to the chargeback

Learn more in Amazon Vendor Central: Help > Chargebacks – Problems With the Transportation Process > About No Show (sign in required).

Changes in Retail Mean Changes in EDI Operations

As a consumer, you cannot help but love the conveniences Amazon has implemented; cheap prices on anything you could ever need, Prime 2-day shipping, same day delivery and now delivery within hours by Amazon employees or close by distribution centers, Dash Buttons, drones and more! If they can think it up, chances are, they will try it. This is undoubtedly the reason behind their growing success, and some recent declines in traditional retail, brick-and-mortar stores or retailers with sub-par ecommerce offerings.

With trends in retail continuing to evolve towards the utmost in customer convenience; retailers are forced to squeeze every efficiency they can out of their supply chain. These operational changes send a ripple through the entire retail and ecommerce environment affecting everyone from vendors, suppliers, warehouses, shipping, production and more.

Other retailers with already strict vendor requirements like Walmart are aggressively updating their policies to appease customers used to the convenience of Amazon, and have also recently added new “On Time In Full” (OTIF) requirements that penalize suppliers for early, late and incomplete deliveries.

Read about Walmart’s major compliance changes, “On Time In Full” (OTIF) Here.

With the rules getter tighter and tighter, vendors have no choice but to keep up with the ever changing compliance demands of their customers, and the need to automate information exchange accurately is imperative. Protecting the integrity of all communications, providing full visibility into document exchanges and the ability to easily research requirement changes are the keys to preventing chargeback fees and improving your relationships with your customers. This is mastered through EDI.

Amazon itself talks about the importance of EDI in their own Vendor Central stating “The stronger the EDI ties are between companies, the more those companies move from a buyer/seller relationship toward a business partner relationship.” Now who doesn’t want to have a business partner relationship with Amazon?

Never Miss a Delivery Deadline, Never Get Stuck with a Chargeback

EDI Here offers IntelligentXchange™ (IX), a cloud-based EDI visibility platform designed to help suppliers reduce chargebacks by continuously auditing their inbound and outbound EDI data for discrepancies, catching data issues as they occur and allowing decision makers at a company to resolve changes faster. Designed to easily bolt onto any EDI translator, the program breaks down complex EDI data into usable, easy-to-read insights to help compliance, customer service, finance and IT teams achieve new levels of operational efficiency.

  • Highlights issues causing deductions and fines.
  • Watchdog alerting for any deviations from your customer’s workflow.
  • Built-in pricing and invoicing checks.
  • EDI conversion which makes EDI documents easy to read and understand.

IX adds an additional layer of visibility to the EDI process, serving as a 24/7 data auditor that proactively identifies problems with incoming and outgoing documents, warning users of discrepancies with your customer deadlines and processes. A built-in sharing function allows users who don’t “speak EDI” to share plain English translated versions of native EDI documents and view related documents, helping to significantly reduce time spent researching data errors. All of these features add up to quicker corrective action, more accurate delivery and reduced chargebacks.

Contact Us to learn more about how IX can improve your EDI visibility and streamline your trading partner communications!

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