In our experience working with some of the largest global brands and big box retailers and wholesalers, the key for a new company to perform well is attention to detail.
These large operations need a high degree of consistency to function smoothly at scale, and enforce consistency with stiff financial penalties for variance. The tolerance for imperfection is small and the costs of mistakes are designed not to just remind you how important consistency is, but in some cases, are even considered profit centers for companies. These are called predatory chargebacks.
Chargebacks can happen for a variety of reasons. Here are the top 11 reasons why you may encounter chargebacks.
- Price labels weren’t put on the hang tags in the exact location
- Polybags may not have the right warnings
- Polybags may not close with the proper seal
- Polybag stickers may be in the wrong place
- The way the pallets were shipped shifted in transport
- Carton labels are missing proper information
- Cartons configured on a pallet in an incorrect order
- Garments folded incorrectly
- Garments placed in incorrectly sized polybags
- Cases arrive bulk packed versus prepacked in certain size distributions
- Hangers with crown sizers don’t match the size of the garment
These issues can be very expensive. One client of ours came to us because they were experiencing $3500 in charge backs for each truck that arrived at a wholesaler where one pallet had tilted and it threw off the whole load.
If you’re looking for a vendor partner to pack and ship your goods to large retailers, that will help you avoid chargebacks, we can help! We have the vendor guides from many of the top companies and for those where we don’t, we know how to ask the right questions to define expectations and set you up for success. And most importantly, we know how to execute. Our facility has processed more than 24,000,000 orders with less than 75 defects! That is a 99.99983% accuracy rate!