What Is a Chargeback?
A chargeback is a fee Walmart deducts from a supplier’s invoice when specific supply chain or compliance requirements are not met. These deductions are intended to recover costs associated with errors, delays, or inefficiencies in the supply chain.
How Do I Avoid Chargebacks?
The best way to avoid chargebacks is to ensure compliance with Walmart’s requirements across ordering, shipping, labeling, and documentation. Maintaining accurate ASNs, following packaging and labeling guidelines, and delivering shipments on time and in full are critical to minimizing risk.
What Are Common Chargebacks?
Common chargebacks typically fall into a few key categories, including:
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On Time In Full (OTIF) performance
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Packaging and labeling noncompliance
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ASN inaccuracies or missing information
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Shipping and routing errors
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These charges are designed to enforce operational standards and improve supply chain efficiency.
Types of Chargebacks
Walmart chargebacks are generally grouped into three categories:
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Merchandise-related
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Accounts payable
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Post-audit
Accounts Payable Chargebacks
Accounts Payable chargebacks require suppliers to submit disputes through Walmart’s Accounts Payable Dispute Portal (APDP) within a specified timeframe. Proper documentation, such as invoices and supporting shipment details, is required for review.
Post Audit Charges
Post-audit charges are applied after a shipment has been processed and typically require additional research. These may include deductions related to pricing discrepancies, allowances, or other post-transaction adjustments.
How Does OCM Support Suppliers with Chargebacks?
OCM helps suppliers identify the root causes of chargebacks, improve compliance processes, and support dispute management. With expertise in Walmart’s requirements, OCM works to reduce avoidable fees and improve overall operational performance.