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By Martin Heubel ยท July 29, 2025 ยท Curated by George's Blog
How to Set Up an Effective Dispute Escalation Process with #Amazon๐
Shortages, Chargebacks, Erroneous Coop Deductions, ... these words send shivers down the spine of 1P vendors.
That's because getting your money back can feel impossible. Worse, you need to explain to your CFO why Amazon won't pay back what's rightfully yours.
The good news is that it doesn't have to be this way โ it only takes 3 steps to take back charge of your P&L:
๐ญ- ๐ง๐ฟ๐ฎ๐ฐ๐ธ ๐๐ต๐ฒ ๐ฟ๐ถ๐ด๐ต๐ ๐ฑ๐ฎ๐๐ฎ
Set up dashboards that gather Coop Billing, Dispute, Remittance, and Invoice information in one place. This lets your teams understand the status quo and identify root causes of financial misalignments.
๐ฎ- ๐ฆ๐ฒ๐๐๐ฝ ๐ฟ๐ฒ๐ด๐๐น๐ฎ๐ฟ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฟ๐ฒ๐๐ถ๐ฒ๐๐
Get the right teams in one room โ consistently. Most financial misalignments are caused by operational process defects.
This means that your sales, supply chain, and finance teams must work together to isolate and address recurring profit leaks.
๐ฏ- ๐๐ฒ๐ณ๐ถ๐ป๐ฒ ๐ฒ๐๐ฐ๐ฎ๐น๐ฎ๐๐ถ๐ผ๐ป ๐บ๐ฒ๐ฐ๐ต๐ฎ๐ป๐ถ๐๐บ๐
Create rules on when and how to escalate rejected disputes with Amazon. For example, if shortages exceed 0.5% of your annual turnover, your sales team must escalate the issue to your Vendor Manager.
Most importantly, donโt start your AVN until any outstanding disputes are resolved.
๐ง๐ต๐ฒ ๐ฏ๐ผ๐๐๐ผ๐บ ๐น๐ถ๐ป๐ฒ?
Vendors who proactively address financial disputes can significantly reduce their negative impact on the customer P&L.
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How are you dealing with financial disputes with Amazon?
Let me know in the comments!
#amazonvendor #amazonstrategy