1. Credit card chargeback claim
Credit card chargeback claim means that the buyer files a claim with the credit card company. The credit card company will contact Amazon to learn about the transaction details, and Amazon will contact the seller to request detailed transaction information. There are many reasons for filing a credit card chargeback, including order-related issues, unauthorized credit cards, fraudulent credit card chargebacks, etc.
For order-related issues, such as not receiving the goods, if the responsible party is the buyer, you can directly file a complaint with Amazon, detailing the communication process and reasons, providing the shipping date, the delivery method used, and all available tracking information for at least 6 months from the date the buyer placed the order on Amazon. After reviewing the information provided by the seller, the Amazon investigator will create a supporting document (“Complaint”) and submit it to the issuing bank on behalf of the seller. In this case, the order will not be counted in the order defect rate.
On the other hand, if the responsible party is the seller, such as sending the order to another delivery address, you can wait for Amazon to process it or refund it directly. At this time, the order will be counted in the order defect rate.
For problems such as unauthorized credit cards and fraudulent credit card rejections, you can also wait for Amazon to process them directly. At this time, the order will not be counted in the order defect rate.
2. Invoice Defective Rate
The Invoice Defective Rate (IDR) is the percentage of orders that have not uploaded invoices to Amazon business buyers within one working day after delivery, which accounts for the total number of Amazon business buyer orders. The Invoice Defective Rate (IDR) is calculated based on working days (Monday to Friday). In other words, if the order is confirmed to be shipped between 00:01 and 23:59 on Monday, the invoice (or receipt) for the order must be uploaded before 23:59 on Tuesday; if the order is confirmed to be shipped between 00:01 and 23:59 on Friday, the invoice (or receipt) for the relevant order can be uploaded before 23:59 on the following Monday.
As of March 20, 2020, Amazon only allows the following three ways to upload invoices: Automatic upload using Amazon VAT Calculation Service (VCS), manual upload through seller platform order management, and choosing a third-party service provider to provide invoicing services. Invoices sent or uploaded through other means such as internal letters, emails, and paper copies sent with packages cannot be counted by Amazon, and such orders will also be included in the invoice defect rate.
The invoice defect rate (IDR) is calculated for orders placed within 7 days starting two weeks ago. Starting in April 2021, seller accounts with an invoice defect rate higher than 5% may have their sales permissions restricted. It should be noted that even if a seller has not activated or has exited B2B, it may still receive orders from corporate buyers. The current total number of B2B orders is still small. Once you forget to upload an invoice, the invoice defect rate will soar. In order to avoid errors or forgetting to upload due to manual operations, you can use Amazon VAT Calculation Service (VCS) or third-party tools for automatic upload.
In the Amazon seller backend, click Settings>Tax Settings>VAT Calculation and Invoice, set the tax number, shipping address, tax rate and other information according to the actual situation, and the settings will be completed.