Chargebacks are often called “expense offsets” because compliance issues caused by a supplier can disrupt the flow of operations for a retailer, resulting in additional operating costs for the retailer. Therefore, they will offset the unforeseen expenses on to the supplier.
These charges have become a bit of a cash cow in recent years, as retailers have implemented stricter delivery windows and other operations slap on-the-wrists. In fact, according to Supply Chain 24/7, all major retailers chargeback their customers, with fines making up as much as 13 percent of their account revenue.
These fees can be serious hits to your company’s revenue, especially if you’re a startup or small to mid-size CPG. Our “Definitive Guide to EDI and Vendor Chargebacks” is here to help. This free guide overviews chargebacks, their impact on an organization, and a full list of retailer fee documents.