When you are selling on Amazon (Prime model), Amazon will charge a shipping fee from the customer. The invoice amount on your orders would be the sum of the price of the product, shipping charges and shipping tax. When you receive payments from Amazon, it should be equal to the invoice amount. However, since Amazon charges the shipping fee, it is recovered by Amazon under the title 'Shipping chargeback'. Learn more

Let us understand with an example; the price of the product was INR 2372.04. Amazon charges INR 80 as a shipping charge from the customer. The invoice amount is the sum of the product price, shipping charge, any other tax i.e. INR 2879. Ideally, you should receive the total invoice amount, i.e INR 2879 against this order. But as INR 80 (shipping charges) is not to be recovered by you, it will be deducted by Amazon under the title 'Shipping chargeback' in the payment report.

In the below screenshot, you can see that shipping and shipping tax INR 80 (67.80+12.20) is included in the invoice amount. The shipping amount is not to be recovered by you. This amount is deducted by Amazon while providing payment. Here, Amazon deducts INR 80 as shipping and shipping tax.

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