Supply Chain Chargeback Recovery Calculator

Quantify how much cash is leaking through retailer chargebacks before you pitch a dispute recovery workflow. Enter shipped units, the average fine, and the share of orders that trigger deductions. Layer on your target recovery rate and optional program costs to reveal reclaimed dollars, net savings, ROI, and how much margin time you win back.

Total sell-in units exposed to retailer compliance fines in the last 12 months.
Average deduction per unit spanning OTIF, labeling, compliance, and shortage claims.
Percent of shipped units that triggered a deduction on recent scorecards.
Defaults to 35%. Share of deductions dispute teams historically overturn.
Defaults to $0. Include analyst labor, software, or third-party contingency fees.

Estimates assume consistent chargeback behavior over a 12-month window. Update inputs when retailers change compliance programs or penalty tiers.

Examples

  • 525,000 units, $58 penalty, 3.2% chargeback rate, 42% recovery, $65,000 program cost ⇒ Baseline deductions total $974,400.00 per year across 525,000 units at 3.20%. With a 42.00% recovery program you reclaim $409,248.00. After $65,000.00 in annual program costs you net $344,248.00, delivering an ROI of 529.61% and regaining 18.4 weeks of margin.
  • $12,000,000 revenue, $50 penalty implies 240,000 units, 1.4% chargebacks, 55% recovery, program cost blank ⇒ Baseline deductions total $168,000.00 per year across 240,000 units at 1.40%. With a 55.00% recovery program you reclaim $92,400.00. With no program costs entered the net savings equals the amount recovered ($92,400.00), trimming 55.00% of leakage and restoring 28.6 weeks of cash flow.

FAQ

How do I model tiered penalties for OTIF versus labeling errors?

Blend a weighted average penalty that reflects each retailer's mix of OTIF, labeling, shortage, and compliance fines so the leakage estimate stays realistic.

Can I compare internal teams to third-party recovery firms?

Yes. Enter the annual program cost for each option, including contingency fees, audit headcount, or platform licenses, to contrast ROI and net savings side by side.

How often should I refresh the chargeback rate input?

Update it quarterly with the latest deduction reports and seasonal scorecards so the model reflects retailer behavior shifts.

Additional Information

  • Chargeback rate multiplies shipped units to estimate how many orders incur retailer deductions before any dispute wins.
  • Average penalty per unit should blend OTIF, labeling, shortage, and compliance fees so leakage is not understated.
  • Recovery rate captures negotiated reversals, proof-of-delivery wins, and automated dispute workflows that claw back cash.

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