Vendor Compliance
Vendor compliance is the set of packaging, labeling, shipping, EDI, and delivery requirements a retailer imposes on its suppliers, enforced through scorecards and financial penalties.
Why it matters for ecommerce brands
Vendor compliance decides how much of your wholesale revenue you actually keep, because retailers deduct fines straight from your invoices. Requirements cover ASNs, labels, carton specs, delivery windows, fill rates, and more, and scorecards track every miss. For example, a brand shipping $500,000 a year to one retailer loses $10,000 if compliance deductions run 2% of invoices, and $30,000 at 6%. Assign one owner per retailer, run a pre-ship audit on every order, and dispute any chargeback you can prove is wrong.
Common questions
- What are the most common vendor compliance violations?
- Common violations include late or missing ASNs, incorrect or missing carton labels, late or early arrival against the delivery window, short shipments, and not following the retailer's carrier routing. Most can be prevented with an EDI checklist and a pre-ship audit.
- How do I dispute a vendor compliance chargeback?
- File through the retailer's supplier portal within its dispute window, attaching proof such as the ASN timestamp, carrier pickup record, label photos, or proof of delivery. Dispute windows are often short, so review deductions every week.
- What is a vendor scorecard?
- A vendor scorecard is the retailer's report of your performance on metrics such as on-time delivery, fill rate, and ASN accuracy. Low scores can bring more chargebacks, smaller orders, or removal as a supplier.