Amazon Vendor Shortage Disputes Now Limited to 2 Years | AMZ Sellers Attorney®

Amazon Vendor Shortage Disputes Now Limited to 2 Years

Reported by AMZ Sellers Attorney® Staff | Updated August 25, 2025

Amazon has quietly implemented a major policy change for vendors: shortage disputes and re-disputes are now limited to two years. Vendors can no longer file disputes or resubmit cases for invoices older than 24 months, even though Vendor Central still displays seven years of invoice and claim data. This shift affects all Purchase Quantity Variance (PQV) and Purchase Price Variance (PPV) claims outside that window, which will now be automatically rejected.

Policy Rollout & Regional Expansion

Originally launched in North America, this policy update is now beginning to appear in other regions, though Amazon has not provided a clear global rollout timeline. Vendors across Europe and Asia have started reporting similar restrictions.

Settlements Now Require Vendor Manager Involvement

Re-disputes and settlements are also becoming more complex. In most cases, an Amazon Vendor Manager (AVS) must now be directly assigned to the account, with submissions routed through the Vendor Manager system. In some cases, Amazon itself initiates settlement discussions through the Global Strategic Program (GSP), emailing vendors and submitting settlement claims on their behalf.

Key Concern: This change increases the burden on vendors to act quickly and maintain automated tracking. Missing a reimbursement window can lead to significant unrecoverable losses, especially for high-volume accounts.

Impact on Vendor Margins

For many vendors, this new 2-year cap poses a serious risk. A single missed PQV or PPV reimbursement can wipe out profit margins. Consider an example: on a $48 aftermarket sensor with a $12 margin, a single remorse return or shortage dispute outside the 2-year window can erase profitability once inspection, restocking, and labor are factored in.

Sellers fear this policy will drive smaller vendors off the platform or force widespread price increases across P&A and similar categories. For enterprise-level vendors, the concern is about systemic losses adding up quickly if claims aren’t filed in time.

What Vendors Should Do Now

• Automate your recovery process: Track shortage and pricing claims in real time with dedicated tools.
• Monitor timelines: Flag invoices and PQV/PPV disputes nearing the 2-year cutoff.
• Engage Vendor Managers early: Building a strong relationship with your assigned AVS can make settlement discussions smoother.
• Document everything: Maintain a clear audit trail of disputes, credits, and Amazon communications.

Request a Free Consultation on Amazon Vendor Disputes

Conclusion

Amazon’s decision to enforce a 2-year limit on shortage disputes fundamentally changes how vendors must operate. While the policy may streamline Amazon’s internal accounting, it puts more pressure on vendors to act quickly, automate claim recovery, and escalate disputes when necessary. For high-volume vendors, missing even a few claims can translate into six-figure losses. Professional assistance is more critical than ever for navigating this evolving Vendor Central landscape.