Parts Per Millionmeasures shortage chargebacks as a proportion of revenue, scaled to one million. It's Amazon's primary vendor compliance health metric.
Input the dollar value of all shortage chargebacks and disputed deductions issued by Amazon for the period. Find this in Vendor Central under Payments → Remittance.
Add your total net revenue (after returns, allowances) for the same period. Use the same date range as your chargebacks for an accurate rate.
Instantly see your Parts Per Million rate, an Amazon-benchmarked performance rating, and actionable steps to reduce chargebacks.
Confirm quantities shipped match each PO exactly. Even single-unit discrepancies compound into significant PPM. Implement a pre-shipment scan verification process.
Amazon's Vendor Routing Guide is non-negotiable. Non-compliant labels, pallet configs, or carton weights trigger automatic chargebacks before Amazon even reviews the shipment.
Amazon's shortage dispute process accepts proof of delivery, BOL, and carrier POD. 30–50% of shortage chargebacks for top vendors are successfully reversed when properly disputed within the 30-day window.
Don't wait for monthly reconciliation. Weekly remittance review catches discrepancies early while evidence (BOL, carrier records) is still readily available.
Advance Ship Notices submitted on time and matching the actual shipment reduce receiving discrepancies by 60–80%. Ensure your 3PL or warehouse submits ASNs before shipment leaves.
Vendors with a dedicated chargebacks manager see 40–60% lower PPM. Centralise responsibility: one person owns PO accuracy, ASN submission, and dispute filing.