What’s Amazon’s coverage for on-time supply with out promise extensions?
Efficient September 25, 2024, it’s essential to preserve a minimal 90% on-time supply price (OTDR) with out promise extensions to have seller-fulfilled merchandise listed on Amazon.com. An OTDR under 90% can lead to restriction of your capacity to have seller-fulfilled merchandise listed. For an amazing buyer expertise, we advocate that you just preserve a 95% or better OTDR for all seller-fulfilled orders.
What’s altering?
Our up to date coverage requires a minimal 90% OTDR with out promise extensions to have seller-fulfilled merchandise listed on Amazon.com. An OTDR under 90% can lead to restriction of your capacity to have seller-fulfilled merchandise listed. To assist present a constructive buyer expertise, we advocate that you just preserve a 95% or better OTDR for all seller-fulfilled orders.
We’re additionally altering the way in which we measure OTDR to now measure the proportion of your tracked seller-fulfilled gadgets that had been delivered on or earlier than the seller-promised “Ship by” date previous to promise extensions being added. Earlier than this alteration, OTDR was measured after promise extensions had been added. Promise extensions are further days that we might add to the supply date to account for logistical elements that will delay a supply akin to excessive climate, transportation community constraints, or current historical past of a vendor delivering shipments after their set supply date. This coverage doesn’t apply to affords utilizing the Achievement by Amazon (FBA) service as a result of sellers are usually not accountable for on-time supply guarantees for FBA orders.
Word: We are going to talk as we roll out the OTDR coverage, and any modifications from the coverage because it stands right now, that will have an effect on you.
What is going to occur to my account if my OTDR falls under the 90% minimal requirement?
An OTDR under 90% can lead to restriction of your capacity to have seller-fulfilled merchandise listed. If that occurs, we’ll notify you of the coverage violation and you may enchantment by clicking the Submit enchantment button on the prime of your Account Well being dashboard to request reinstatement of your capabilities to record seller-fulfilled merchandise.
The request will probably be reviewed inside 72 hours and will embrace the next info:
The problems that led to a low on-time supply price
The actions that you just’ll take to enhance your on-time supply price
The steps that you just’ve taken to stop future points concerning on-time supply
On subsequent coverage violations, in case your OTDR remains to be under 90%, you possibly can enchantment by clicking Submit enchantment on the prime of your Account Well being dashboard.
To get reinstated:
Sellers on Particular person promoting plans or sellers on a Skilled promoting plan however delivery from outdoors the US should submit an enchantment request indicating how they’ll enhance their OTDR. Skilled sellers that ship domestically throughout the US will probably be required to fulfill the 90% OTDR requirement through the use of the next Amazon free-to-use success and delivery instruments for his or her seller-fulfilled orders for the subsequent 180 days:
Transport Settings Automation (SSA) to set correct supply dates by way of automated transit time calculations of your most well-liked ship strategies.
Automated dealing with time to set correct dealing with instances per SKU, primarily based on how lengthy it normally takes you to move every SKU to carriers. For brand new SKUs, the default dealing with time will apply till there are sufficient shipments in your automated dealing with time to be calculated.
Amazon Purchase Transport to purchase delivery labels that use extremely dependable delivery strategies for each Skilled and Particular person promoting plans. You should utilize Amazon Purchase Transport by way of Handle Orders, Transport API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Transport.
How is OTDR calculated?
OTDR measures the proportion of your tracked seller-fulfilled gadgets that had been delivered on or earlier than the seller-promised “Ship by” date. OTDR is the common of your whole tracked shipped gadgets, not only a particular SKU or cargo.
To calculate OTDR with out promise extensions, we’ll think about a 14-day window of time. We’ll pull information from shipments that had a promised supply date within the final 21 days, and exclude the newest 7 days because the shipments from final 7 days should still be within the technique of being delivered. For instance, for those who had 130 orders with a promised supply date within the final 21 days, and 30 of these has a promised supply date within the final 7 days, OTDR will probably be calculated excluding the 30 orders from the final 7 days (130 – 30 =100). Of these 100 orders delivered, if 90 had been delivered on or earlier than the promised “Ship by” date, your OTDR could be 90%.
Vendor’s promised “Ship by” date is calculated utilizing seller-set dealing with and transit time, previous to the addition of promise extensions. This date could also be totally different than the supply date proven to prospects if promise extensions had been added.
For instance, for a vendor with a set dealing with time of 1 day and set transit time of two days:
The promised “Ship by” date will probably be in 3 enterprise days.
So, if an order is obtained on a Monday, this order would must be delivered by Thursday (seller-promised “Ship by” date) to be thought-about delivered on time.
Nevertheless, if 1 day of promise extensions was added to that provide, the promised supply date the shopper noticed whereas buying would have been Friday. Regardless of the date proven to the shopper (Friday), sellers should ship by their set “Ship by” date (Thursday) for the cargo to be thought-about delivered on-time.
Shipped models will probably be thought-about as OTDR compliant if both the supply occurred on or earlier than the “Ship by” date proven on Vendor Central, or the next 3 situations had been met:
The shipped SKU was assigned to a delivery template with Transport Settings Automation (SSA) enabled.
Your account has automated dealing with time enabled.
You acquire an “OTDR Protected” delivery label on Amazon Purchase Transport.
Word: OTDR Safety is simply relevant to Skilled sellers delivery from the US, as the entire required instruments are at the moment not obtainable on Particular person promoting plans or to Skilled sellers which might be delivery from outdoors of the US.
Does Amazon supply instruments that may assist me enhance my OTDR and meet the Amazon’s OTDR necessities?
Sure. You possibly can handle your supply dates utilizing the instruments we’ve supplied, or you possibly can manually alter your Transit time and Dealing with time settings. We designed these instruments to set correct supply dates, scale back late deliveries, and to fulfill or exceed the minimal OTDR requirement. And since Amazon is making calculations in your behalf that have an effect on OTDR, you’ll get OTDR safety from late deliveries on gadgets shipped by way of normal delivery for those who use all three instruments as follows:
Transport Settings Automation (SSA), for Skilled promoting plans, units correct supply dates by way of automated transit time calculations of your most well-liked delivery providers. You should select one of many most well-liked ship strategies within the SSA templates, which can mark the transit time on the delivery template as “Managed by Amazon”.
Automated dealing with time, for Skilled promoting plans, units correct dealing with instances per SKU primarily based on how lengthy it normally takes you to move every SKU to carriers. You should make sure that automated dealing with time is enabled in your delivery settings.
Amazon Purchase Transport, for each Skilled and Particular person promoting plans, sells delivery labels that use highly-reliable ship strategies. You should utilize Amazon Purchase Transport by way of Handle Orders, Transport API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Transport. You should select delivery labels marked as “OTDR Protected” when utilizing Amazon Purchase Transport or Veeqo.
Word: OTDR Safety is simply obtainable for gadgets shipped by way of Customary Transport, gadgets shipped by way of different delivery choices akin to Free Financial system, Customary Prime, or Premium Transport, are usually not eligible for OTDR safety.
For instance, if a vendor shipped 100 orders and 15 had been delivered late:
State of affairs A: If a vendor didn’t use all three of Amazon’s free success and delivery instruments for any of these 15 late deliveries, all 15 of their late deliveries will negatively impression their OTDR. Consequently, their OTDR will probably be (100-15/100) = 85%.
State of affairs B: If a vendor used all three of Amazon’s free success and delivery instruments for five of these 15 late deliveries, solely the ten late shipments that weren’t utilizing Amazon’s instruments will negatively impression OTDR. Consequently, the vendor’s OTDR will probably be (100-10/100) = 90%.
Word: OTDR Safety is simply relevant to Skilled sellers delivery from the US, as the entire required instruments are at the moment not obtainable on Particular person promoting plans or to Skilled sellers which might be delivery from outdoors of the US.
Can I be exempted from the OTDR requirement if supply delays are attributable to climate or service community points past my management?
Sellers should meet the 90% OTDR requirement with out promise extensions. Nevertheless, if there’s a main disruption occasion that impacts all sellers delivery to a particular area, Amazon won’t rely deliveries which might be late because of this in your OTDR. Whether or not a disruption is taken into account to be main is a discretionary resolution made by Amazon.
What modifications are you making to dealing with time and transit time settings?
Transit time modifications: As of August 25, 2024, transit time necessities will probably be up to date to additional align with the supply capabilities of delivery providers. If you happen to’re delivery throughout the contiguous United States (excluding Hawaii, Alaska, and US territories), you possibly can set a most transit time of 5 days for traditional delivery (beforehand 8 days) and eight days without spending a dime economic system delivery (beforehand 10 days). To be taught extra, go to Default transit time. If you happen to’re delivery internationally to the US, there are at the moment no modifications to the transit instances which you can configure.
Dealing with time automation: As of September 25, 2024, to enhance dealing with time accuracy, automated dealing with time will probably be enabled for sellers who’ve a dealing with time hole of two days or extra between their set dealing with time and their precise dealing with time. That will help you maintain in good standing with different account well being metrics associated to dealing with time, you probably have automated dealing with time enabled, your seller-fulfilled listings won’t be deactivated in case your late cargo price (LSR) doesn’t meet the LSR coverage requirement. To see your dealing with time hole, evaluate your Achievement Perception dashboard.
How can I view my on-time supply (OTD) metric and report?
To view your OTD metrics and report on Vendor Central:
On the Efficiency menu, choose Account Well being.
Find the Transport Efficiency part and choose On-time supply price.
You possibly can see your OTDR metric on the Transport Efficiency web page. Solely orders included within the present OTD defect report rely in opposition to the OTDR metric. If the report incorporates no orders, it means both the entire orders had been delivered on time or they fulfilled utilizing Amazon’s free success instruments.
To obtain the OTD defect report, click on View particulars after which Obtain report.
Necessary: Permit 72 hours for the report and metrics to replicate any updates or edits.
How can I preserve a wholesome OTDR?
To maintain a wholesome OTDR with out promise extensions we advocate that you just do the next:
Overview your OTDR with out promise extensions metric in your Account Well being dashboard. You can even obtain a report of which orders had been delivered after the supply date with out promise extensions.
Overview the “Ship by” date for each order. This date corresponds to the anticipated supply date with out promise extensions. Word that the precise supply date that prospects see could also be longer due to promise extensions.
In case you are a Skilled vendor, use automated dealing with time to set correct dealing with time per SKU primarily based on how lengthy it has taken you traditionally at hand off every SKU to carriers. Moreover, with automated dealing with time enabled, your seller-fulfilled listings won’t be deactivated in case your late cargo price (LSR) doesn’t meet the LSR coverage requirement.
In case you are a Skilled vendor, allow Transport Settings Automation (SSA), which units correct supply dates in your orders by routinely calculating transit instances of your most well-liked ship strategies out of your warehouse to every buyer’s location.
Choose a ship technique with a excessive reliability to ship your order on time. You can even use Amazon Purchase Transportto purchase delivery labels which were recognized to have a excessive reliability for On-time supply primarily based on Amazon’s information from hundreds of thousands of shipments. These ship strategies have a defend icon subsequent to them, marked as OTDR Protected. You should utilize Amazon Purchase Transport by way of Handle Orders, Transport API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Transport. To be taught extra about buying OTDR protected delivery labels, go to Amazon Purchase Transport.
