What’s Amazon’s coverage for on-time supply with out promise extensions?
Efficient September 25, 2024, it’s essential to keep a minimal 90% on-time supply price (OTDR) with out promise extensions to have seller-fulfilled merchandise listed on Amazon.com. An OTDR beneath 90% can lead to restriction of your potential to have seller-fulfilled merchandise listed. For a fantastic buyer expertise, we advocate that you just keep a 95% or larger 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 beneath 90% can lead to restriction of your potential to have seller-fulfilled merchandise listed. To assist present a constructive buyer expertise, we advocate that you just keep a 95% or larger OTDR for all seller-fulfilled orders.
We’re additionally altering the way in which we measure OTDR to now measure the share 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 variation, OTDR was measured after promise extensions had been added. Promise extensions are further days that we could add to the supply date to account for logistical components that will delay a supply resembling excessive climate, transportation community constraints, or latest historical past of a vendor delivering shipments after their set supply date. This coverage doesn’t apply to provides utilizing the Success by Amazon (FBA) service as a result of sellers aren’t accountable for on-time supply guarantees for FBA orders.
Be aware: We are going to talk as we roll out the OTDR coverage, and any adjustments from the coverage because it stands right now, that will have an effect on you.
What’s going to occur to my account if my OTDR falls beneath the 90% minimal requirement?
An OTDR beneath 90% can lead to restriction of your potential 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 high of your Account Well being dashboard to request reinstatement of your capabilities to listing seller-fulfilled merchandise.
The request might be reviewed inside 72 hours and will embody the next data:
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 forestall future points concerning on-time supply
On subsequent coverage violations, in case your OTDR continues to be beneath 90%, you possibly can enchantment by clicking Submit enchantment on the high of your Account Well being dashboard.
To get reinstated:
Sellers on Particular person promoting plans or sellers on a Skilled promoting plan however transport from exterior the US should submit an enchantment request indicating how they may enhance their OTDR. Skilled sellers that ship domestically inside the US might be required to fulfill the 90% OTDR requirement through the use of the next Amazon free-to-use achievement and transport instruments for his or her seller-fulfilled orders for the subsequent 180 days:
Delivery 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 occasions per SKU, based mostly on how lengthy it normally takes you to go every SKU to carriers. For brand spanking new SKUs, the default dealing with time will apply till there are sufficient shipments to your automated dealing with time to be calculated.
Amazon Purchase Delivery to purchase transport labels that use extremely dependable transport strategies for each Skilled and Particular person promoting plans. You should utilize Amazon Purchase Delivery by way of Handle Orders, Delivery API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Delivery.
How is OTDR calculated?
OTDR measures the share 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 entire tracked shipped gadgets, not only a particular SKU or cargo.
To calculate OTDR with out promise extensions, we’ll take into account 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 latest 7 days because the shipments from final 7 days should be within the means of being delivered. For instance, in case you 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 might 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 can 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 completely 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 might be in 3 enterprise days.
So, if an order is acquired on a Monday, this order would have to be delivered by Thursday (seller-promised “Ship by” date) to be thought of delivered on time.
Nonetheless, if 1 day of promise extensions was added to that supply, the promised supply date the client noticed whereas buying would have been Friday. Regardless of the date proven to the client (Friday), sellers should ship by their set “Ship by” date (Thursday) for the cargo to be thought of delivered on-time.
Shipped models might be thought of 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 transport template with Delivery Settings Automation (SSA) enabled.
Your account has automated dealing with time enabled.
You acquire an “OTDR Protected” transport label on Amazon Purchase Delivery.
Be aware: OTDR Safety is simply relevant to Skilled sellers transport from the US, as all the required instruments are at present not accessible on Particular person promoting plans or to Skilled sellers which can be transport from exterior of the US.
Does Amazon provide instruments that may assist me enhance my OTDR and meet the Amazon’s OTDR necessities?
Sure. You may handle your supply dates utilizing the instruments we’ve supplied, or you possibly can manually modify 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 customary transport in case you use all three instruments as follows:
Delivery Settings Automation (SSA), for Skilled promoting plans, units correct supply dates by way of automated transit time calculations of your most well-liked transport companies. It’s essential to select one of many most well-liked ship strategies within the SSA templates, which is able to mark the transit time on the transport template as “Managed by Amazon”.
Automated dealing with time, for Skilled promoting plans, units correct dealing with occasions per SKU based mostly on how lengthy it normally takes you to go every SKU to carriers. It’s essential to make sure that automated dealing with time is enabled in your transport settings.
Amazon Purchase Delivery, for each Skilled and Particular person promoting plans, sells transport labels that use highly-reliable ship strategies. You should utilize Amazon Purchase Delivery by way of Handle Orders, Delivery API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Delivery. It’s essential to select transport labels marked as “OTDR Protected” when utilizing Amazon Purchase Delivery or Veeqo.
Be aware: OTDR Safety is simply accessible for gadgets shipped by way of Customary Delivery, gadgets shipped by way of different transport choices resembling Free Economic system, Customary Prime, or Premium Delivery, aren’t eligible for OTDR safety.
For instance, if a vendor shipped 100 orders and 15 had been delivered late:
Situation A: If a vendor didn’t use all three of Amazon’s free achievement and transport instruments for any of these 15 late deliveries, all 15 of their late deliveries will negatively influence their OTDR. In consequence, their OTDR might be (100-15/100) = 85%.
Situation B: If a vendor used all three of Amazon’s free achievement and transport instruments for five of these 15 late deliveries, solely the ten late shipments that weren’t utilizing Amazon’s instruments will negatively influence OTDR. In consequence, the vendor’s OTDR might be (100-10/100) = 90%.
Be aware: OTDR Safety is simply relevant to Skilled sellers transport from the US, as all the required instruments are at present not accessible on Particular person promoting plans or to Skilled sellers which can be transport from exterior 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. Nonetheless, if there’s a main disruption occasion that impacts all sellers transport to a selected area, Amazon is not going to depend deliveries which can be late consequently in your OTDR. Whether or not a disruption is taken into account to be main is a discretionary choice made by Amazon.
What adjustments are you making to dealing with time and transit time settings?
Transit time adjustments: As of August 25, 2024, transit time necessities might be up to date to additional align with the supply capabilities of transport companies. In case you’re transport inside the contiguous United States (excluding Hawaii, Alaska, and US territories), you possibly can set a most transit time of 5 days for traditional transport (beforehand 8 days) and eight days at no cost financial system transport (beforehand 10 days). To be taught extra, go to Default transit time. In case you’re transport internationally to the US, there are at present no adjustments to the transit occasions that you would be able to configure.
Dealing with time automation: As of September 25, 2024, to enhance dealing with time accuracy, automated dealing with time might 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 preserve in good standing with different account well being metrics associated to dealing with time, in case you have automated dealing with time enabled, your seller-fulfilled listings is not going to be deactivated in case your late cargo price (LSR) doesn’t meet the LSR coverage requirement. To see your dealing with time hole, evaluation your Success 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 Delivery Efficiency part and choose On-time supply price.
You may see your OTDR metric on the Delivery Efficiency web page. Solely orders included within the present OTD defect report depend in opposition to the OTDR metric. If the report accommodates no orders, it means both all the orders had been delivered on time or they fulfilled utilizing Amazon’s free achievement instruments.
To obtain the OTD defect report, click on View particulars after which Obtain report.
Essential: Permit 72 hours for the report and metrics to mirror any updates or edits.
How can I keep a wholesome OTDR?
To maintain a wholesome OTDR with out promise extensions we advocate that you just do the next:
Evaluation your OTDR with out promise extensions metric in your Account Well being dashboard. You can too obtain a report of which orders had been delivered after the supply date with out promise extensions.
Evaluation the “Ship by” date for each order. This date corresponds to the anticipated supply date with out promise extensions. Be aware that the precise supply date that prospects see could also be longer due to promise extensions.
If you’re a Skilled vendor, use automated dealing with time to set correct dealing with time per SKU based mostly 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 is not going to be deactivated in case your late cargo price (LSR) doesn’t meet the LSR coverage requirement.
If you’re a Skilled vendor, allow Delivery Settings Automation (SSA), which units correct supply dates to your orders by routinely calculating transit occasions of your most well-liked ship strategies out of your warehouse to every buyer’s location.
Choose a ship methodology with a excessive reliability to ship your order on time. You can too use Amazon Purchase Deliveryto purchase transport labels which were recognized to have a excessive reliability for On-time supply based mostly on Amazon’s information from hundreds of thousands of shipments. These ship strategies have a protect icon subsequent to them, marked as OTDR Protected. You should utilize Amazon Purchase Delivery by way of Handle Orders, Delivery API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Delivery. To be taught extra about buying OTDR protected transport labels, go to Amazon Purchase Delivery.
