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Supply Chain Graphic of the Week: Retail Chargeback Headed Up, not Down


SCDigest Benchmark Study Finds both Retailer and Manufacturers See Chargebacks Rising, not Falling

Jan. 8, 2018
SCDigest Editorial Staff

What's going on with the contentious subject of retail "chargebacls" - the fines retailers levy on vendors for delivery issues ranging from labeling errors to late and incomplete shipments?


What is the trend in such chargebacks? That was among the many topics SCDigest wanted to explore in our second biannual study of retailer-vendor supply chain relationships, with the report issued just last week. It can be found here: The State of Retailer-Vendor Supply Chain Relationships 2018


As seen on the chart below, we asked both retailers and vendors for their views, and the results and comments were quite interesting. 44% of retailers say their chargeback levels are growing, whereas vendors see things a bit differently, with 55% indicating they are seeing rising chargebacks.




We're not quite sure how to reconcile those two data points. Regardless, more on both sides say chargebacks are rising than in the previous study, where 36% of retailers and 51% of vendors saw chargeback levels increasing.

The comments from retailers and vendors on this topic were quite interesting.

"The number of deductions year over year has decreased, however the amount we have collected has increased because the violations have hit higher tier dollar amounts," one retailer said.

On the vendor side, one noted that "Our chargeback levels are rising due to changes in retailer requirements plus internal manual efforts to be compliant, which results in human error. Also, retailers are becoming less willing to bend when requesting leniency for one-time violations."

Again, The excellent full report can be found here: The State of Retailer-Vendor Supply Chain Relationships 2018


Any Feedback on our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback section below.


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