Prevention Is Better Than Disputing
The most effective way to deal with chargebacks is to prevent them from happening in the first place. Every chargeback you avoid is money you keep. And beyond the direct financial cost, a strong compliance track record makes you a more valued supplier and can open doors to more business with retailers.
Most chargebacks result from process breakdowns, not from bad intentions. By building consistent habits and using RetailReady's tools to stay on track, you can dramatically reduce your chargeback rate.
Key Strategies for Prevention
Ship on Time, Every Time
Late shipments are the single most common cause of chargebacks. Check the Must Arrive By Date (MABD) on every purchase order as soon as it arrives. Work backward from the MABD to determine your last possible ship date, and then build in a buffer. Aim to ship early enough that your product arrives one to two days before the MABD, not on the MABD itself. Unexpected delays happen, and that buffer protects you.
Send Your ASN Immediately After Shipping
Do not wait until the end of the day or the next morning to send your Advance Ship Notice. Transmit it in RetailReady as soon as the shipment leaves your facility. The longer you wait, the greater the risk that the shipment arrives before the ASN, which triggers a chargeback.
Double-Check Tracking Numbers
An incorrect tracking number on your ASN creates a mismatch that the retailer's system will flag. Before transmitting, verify that every tracking number and Bill of Lading (BOL) number is entered correctly. A single transposed digit can cause problems.
Verify PO Numbers on All Labels
Every carton label and pallet label must display the correct PO number. When you print labels from RetailReady, the PO number is populated automatically. If you use a separate labeling system, double-check that the PO number matches before applying labels to cartons.
Maintain High OTIF Scores
OTIF (On Time, In Full) is the metric retailers use to measure supplier performance. "On Time" means arriving by the MABD. "In Full" means shipping the complete quantity ordered. Retailers track OTIF scores closely, and suppliers who consistently fall below the target face increased scrutiny and potentially higher chargeback rates.
Monitor Your Compliance Dashboard
RetailReady includes a compliance dashboard that shows your performance metrics at a glance. Check it regularly. If you see your on-time percentage slipping or an increase in ASN errors, address the root cause before it turns into a pattern of chargebacks.
Chargeback Prevention Checklist
Use this checklist for every order you fulfill:
- Review the purchase order immediately when it arrives. Note the MABD and any special instructions.
- Confirm you can fulfill the full quantity before the ship-by date. If not, communicate with the retailer right away.
- Follow the retailer's routing guide exactly. Use the correct carrier and shipping method.
- Print labels from RetailReady to ensure PO numbers, UPCs, and addresses are accurate.
- Count cartons carefully and record the exact count in your shipment.
- Verify all tracking numbers and BOL numbers before transmitting the ASN.
- Send the ASN immediately after the shipment leaves your facility. Do not delay.
- Submit your invoice promptly after shipping. Do not wait for the shipment to be received.
- Check the compliance dashboard weekly to monitor your performance trends.
- Review any chargebacks as soon as they arrive. Dispute invalid ones promptly and learn from valid ones.
Final thought: Chargeback prevention is not about being perfect every single time. It is about building reliable processes that minimize mistakes. Suppliers who treat compliance as a core part of their workflow, rather than an afterthought, consistently outperform those who do not.