Why is Amazon Vendor Central deducting money from my payments?

Amazon deducts from vendor payments for chargebacks when a shipment breaks its rules, shortage claims when it records fewer units than you invoiced, and agreed costs such as co-op and allowances. Many deductions can be disputed, but only with proof and within the window Amazon sets. Prime Team Agency, an Amazon agency, tracks them with brands.

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The payment is smaller than the invoice

You ship the purchase order, send the invoice and the payment that comes back is lower. The remittance lists deductions you do not recognize, and some are too old to dispute.

Deductions are a frequent complaint from brands selling to Amazon as a vendor. An Amazon agency that works in Vendor Central should check them every payment cycle.

Where deductions come from

• Operational chargebacks. Fees when a shipment misses Amazon's rules for labels, packaging, carton contents, appointments or the advance shipment notice.
• Shortage claims. Amazon records fewer units received than you invoiced and pays for what it recorded.
• Price claims. The invoiced price does not match the purchase order price.
• Agreed costs. Co-op, marketing and damage allowances from your vendor agreement.
• Returns. Units sent back to you, and the costs that come with them.

What you can do

• Match every remittance to its invoices and list each deduction by type, purchase order and date.
• Keep proof of delivery, carton labels and packing lists for every shipment.
• Dispute shortage and price claims in Vendor Central before the window closes.
• Find the chargebacks that repeat and fix the step in the warehouse that causes them.
• Read your vendor agreement so you know which costs you already agreed to.

When to get help

If deductions keep growing and nobody on your team owns them, start with a review of the last few months of remittances. We can go through them with you. Contact our team to talk it through.

Related questions

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Related reading

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