Amazon's New Packaging Guidelines and Prep Chargebacks: a Playbook and Long-Term Implications for Vendors

Source: Keith Anderson, Tuesday, Sep 25, 2012

In May 2012, Amazon began to inform strategic CPG vendors of its new "Path to Profitability," a roadmap for improving the long-term economic viabillity of Amazon's CPG business for both Amazon and its vendors. In July 2012, Amazon notified vendors of plans to institute chargebacks for prep charges that Amazon has so far absorbed without deductions. These new policies are scheduled to take effect 9/30/12, though that date has already been pushed back once and another extension is plausible.