Shortage Claim

Navigating Amazon Shortage Claims

Jason White avatar
Written by Jason White
Updated over a week ago


A shortage claim transaction is created when Amazon can’t match the products you shipped against their receipt records. The shortage claim is generated approximately five days before the due date of the invoice. This allows some time to match your invoice against Amazon’s receipt records and then capture the shortage claim in the payment cycle if a match doesn’t occur for valid reasons.

Understanding Potential vs Remaining Shortages

Amazon’s system is set up to detect when the quantity of an item does not match the quantity said to be received at the facility; however, the timing of the shipments is the key factor in determining a potential shortage from a remaining shortage. A potential
shortage is defined as a short-term quantity discrepancy between the invoice and Amazon facility records. Usually around 2 months elapse while they wait for the rest the shipment to be accounted for. A remaining shortage is the result of an unresolved potential shortage. A remaining shortage indicates that Amazon matched a portion of the invoice to the quantity received at their facility, and after the 2 month window the remaining amount is charged back to the supplier. Remaining unresolved shortages drop to zero dollars on the financial scorecard once an invoice becomes older than 9 months, but you can still find remaining unresolved shortages by browsing through your invoice list via "View all invoices" in Vendor Central, or on Deduction Navigator. These unresolved deductions can be disputed using the open statement process (settlement).

How to avoid Valid Shortage Claims

  • Potential Shortage claims are not final, so suppliers can investigate their validity during the 2 month window and have them cancelled if invalid.

  • Ensure that all cases are shipped as noted on the freight bill. Be sure all cases ordered on the PO are shipped complete.

  • If the load is not SLC (shipper load and count) then make sure the BOL is not marked SLC; otherwise, you will be liable for shortages.

  • The driver must note the case count on the Bill of Lading and not have marked SLC.

  • Read about Amazon’s load quality guidelines in Vendor Central by visiting

    Support > Resource Center > Operations > Manual.

  • Ensure case pack quantities are accurately reflected in Vendor Central.

  • Have only one label on your carton/master pack.

  • Read the Pan EU Vendor Manual for barcode and label requirements.

  • Ensure the accuracy of your catalog setup by double-checking UPCs and other identifying information after setup.

  • Keep records of historical catalog prices and effective dates for changes.

  • Ensure that case pack quantities are accurately reflected in Vendor Central.

  • Understand License Plate Receive, the implementation of scanning a single carton label with a Serial Shipping Container Code (SSCC). Amazon has their own recommended version called AMZNCC.

  • Avoid transfers by shipping directly to the receiving FC.

What happens when you dispute a Shortage Claim

Amazon analyzes your dispute to confirm that they received your goods. As part of their standard matching process, Amazon searches for receipts for 40 days after the invoice due date. They deny disputes only after they are unable to validate proof of receipt within that 40 day window.

How to Dispute Invalid Shortage Claims

  • Amazon no longer requires suppliers to provide a POD. Amazon prefers data directly related to the unit-level receipt. Details like EAN codes, ASNs, and images of carton-level data are more likely to win your dispute claim.

  • Dispute deductions within 30 days of the invoice due date.

    • Average Dispute Resolution Time

      • Within 30 days: 2-4 weeks

      • Settlement process (after 30 days): 6-8 months

      • Read the Amazon Dispute Timeliness article for more information.

  • Although rare, older deductions can still be approved. We’ve seen rare individual cases of deductions from invoices as much as 1 year old being approved.

  • Find a solution to organize, save indefinitely, and easily find your shipping documents for a quicker dispute process and to prepare for the settlement process if a valid dispute is denied.

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