Chargebacks and Shortages: How One Company Solves the Problem

While e-commerce platforms like Amazon have presented a tremendous opportunity for vendors to get their products in front of the eyes of potential consumers, their policies also present an obstacle. Although these policies are designed to protect both consumers and vendors, the system is undeniably flawed — sometimes at vendors’ expense. Companies like chargeguard offer services that provide vendors with the support they need to thrive.

Vendors selling products through Amazon’s Vendor Central platform may have found that they are having charges levied against them by the e-commerce giant for issues such as shortages and chargebacks, a process primarily conducted through automation. “Like any automated procedure, mistakes can be made, and funds are withheld from vendors that should have ended up in their pockets,” explains chargeguard CEO John W. Collins. “The process of disputing these charges can be complicated and time-consuming.”

Helping vendors recover chargebacks and shortages

To solve this problem, vendors can turn to a company like chargeguard that helps them recover Amazon deductions and protect against new ones being levied against them. Dedicated and experienced teams at chargeguard do all of the disputing and case management for brands. Handling this process in-house can be laborious as it involves filing several thousand disputes, each with multiple stages. The proprietary process at chargeguard streamlines this step to ensure maximum efficiecy as well as returns.

At chargeguard, they can recover up 70% of chargeback fees and shortages, dating back five years. For vendors dealing with a large volume of transactions, this can add up to millions of dollars worth of fees, a significant dent in their company’s profits. The dispute process is an extensive one, but when there are that many fees, it’s worth it — especially when chargeguard is putting in all the effort.

Vendors that work with chargeguard also have access to detailed insights that allows them to track their disputes through every step in the process. “We know Vendor Central is not the most intuitive platform and can sometimes be challenging to navigate, even for the most experienced Amazon vendors,” says Collins. “To solve this issue, chargeguard provides insights showing how much money has been recovered, how much is being disputed, and how much was lost to rejected disputes.”

Before the chargeguard team begins the recovery process, they complete a detailed account audit of the vendor’s account, called the chargeguard Evaluation and Recovery Analysis (C.E.R.A.), breaking down the fees they have been charged and identifying what is recoverable through the chargeguard process. Several major brands trust chargeguard and its process to recover their chargeback fees and shortages. Therefore, vendors can rest assured knowing their business is in good hands.

Still, for those who aren’t sure whether to hand off the management to chargeguard, the C.E.R.A. audit is risk-free and has no obligation. This allows vendors to see the total potential recovery that chargeguard anticipates getting from their case and gives them the numbers they need to decide whether pursuing recovery makes sense for their business or not. Furthermore, this potential recovery is only an estimate, and in most cases, chargeguard has been able to recover even more for vendors than they projected.

Preventing further fees from accumulating

However, chargeguard‘s services do not stop with the recovery process. They offer supply chain coaching that helps reduce and mitigate ongoing chargebacks. By applying these insights, vendors can prevent these fees before they are ever levied against their accounts. This process has been shown to increase overall profitability by as much as 20%.

Chargeback fees can be a thorn in the side of e-commerce vendors. “Although one fee might not seem like much, it can add up to a significant sum when fees are levied to vendor accounts at large volumes and can be very frustrating to dispute,” says Collins. “With the chargeguard process, vendors can not only get this money back but do so without wasting valuable resources and time.”


chargeguard believes that Amazon’s vendors and marketplace sellers deserve to be treated fairly and transparently. That stronger oversight of erroneous fees levied upon vendors should be enacted for all vendors, regardless of size. Operational non-compliance should be enforced on both sides of the table. That a brand’s profits are justly theirs. Not Amazon’s.

chargeguard’s purpose is not only to help brands THRIVE on Amazon and eCommerce retailer platforms but also to empower them with the knowledge, actionable insights, and thought leadership needed to even an unfair playing field.

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