What’s Amazon’s coverage for on-time supply with out promise extensions?
Efficient September 25, 2024, you will need 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 skill to have seller-fulfilled merchandise listed. For an important buyer expertise, we suggest that you simply 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 skill to have seller-fulfilled merchandise listed. To assist present a constructive buyer expertise, we suggest that you simply 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 share of your tracked seller-fulfilled objects that have 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 have been added. Promise extensions are further days that we could add to the supply date to account for logistical elements that will delay a supply comparable 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 presents utilizing the Achievement by Amazon (FBA) service as a result of sellers should not chargeable for on-time supply guarantees for FBA orders.
Notice: We’ll talk as we roll out the OTDR coverage, and any adjustments from the coverage because it stands immediately, that will have an effect on you.
What’s 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 skill to have seller-fulfilled merchandise listed. If that occurs, we’ll notify you of the coverage violation and you’ll 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 can be reviewed inside 72 hours and may embody the next data:
The problems that led to a low on-time supply price
The actions that you simply’ll take to enhance your on-time supply price
The steps that you simply’ve taken to stop future points relating to on-time supply
On subsequent coverage violations, in case your OTDR continues to be under 90%, you may 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 transport from exterior the US should submit an enchantment request indicating how they’ll enhance their OTDR. Skilled sellers that ship domestically inside the US can be required to satisfy the 90% OTDR requirement through the use of the next Amazon free-to-use success 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 automated transit time calculations of your most well-liked ship strategies.
Automated dealing with time to set correct dealing with occasions per SKU, primarily based on how lengthy it normally takes you to cross 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 use Amazon Purchase Delivery by 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 objects that have been delivered on or earlier than the seller-promised “Ship by” date. OTDR is the common of all your tracked shipped objects, not only a particular SKU or cargo.
To calculate OTDR with out promise extensions, we’ll contemplate a 14-day window of time. We’ll pull knowledge 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 strategy of being delivered. For instance, should 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 can be calculated excluding the 30 orders from the final 7 days (130 – 30 =100). Of these 100 orders delivered, if 90 have 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 have 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 can be in 3 enterprise days.
So, if an order is acquired on a Monday, this order would must be delivered by Thursday (seller-promised “Ship by” date) to be thought-about 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-about delivered on-time.
Shipped items can 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 have 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 purchased an “OTDR Protected” transport label on Amazon Purchase Delivery.
Notice: OTDR Safety is just 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 might be transport from exterior of the US.
Does Amazon supply 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 offered, or you may manually regulate your Transit time and Dealing with time settings. We designed these instruments to set correct supply dates, scale back late deliveries, and to satisfy 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 objects shipped by commonplace transport should you use all three instruments as follows:
Delivery Settings Automation (SSA), for Skilled promoting plans, units correct supply dates by automated transit time calculations of your most well-liked transport companies. You have to select one of many most well-liked ship strategies within the SSA templates, which can 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 primarily based on how lengthy it normally takes you to cross every SKU to carriers. You have to be 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 use Amazon Purchase Delivery by Handle Orders, Delivery API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Delivery. You have to select transport labels marked as “OTDR Protected” when utilizing Amazon Purchase Delivery or Veeqo.
Notice: OTDR Safety is just accessible for objects shipped by Normal Delivery, objects shipped by different transport choices comparable to Free Financial system, Normal Prime, or Premium Delivery, should not eligible for OTDR safety.
For instance, if a vendor shipped 100 orders and 15 have been delivered late:
State of affairs A: If a vendor didn’t use all three of Amazon’s free success 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 can be (100-15/100) = 85%.
State of affairs B: If a vendor used all three of Amazon’s free success 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 can be (100-10/100) = 90%.
Notice: OTDR Safety is just 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 might be transport from exterior of the US.
Can I be exempted from the OTDR requirement if supply delays are brought on by climate or provider 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 particular area, Amazon won’t rely deliveries which might be late consequently in your OTDR. Whether or not a disruption is taken into account to be main is a discretionary determination 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 can be up to date to additional align with the supply capabilities of transport companies. For those who’re transport inside the contiguous United States (excluding Hawaii, Alaska, and US territories), you may set a most transit time of 5 days for traditional transport (beforehand 8 days) and eight days totally free financial system transport (beforehand 10 days). To study extra, go to Default transit time. For those who’re transport internationally to the US, there are at present no adjustments to the transit occasions you can configure.
Dealing with time automation: As of September 25, 2024, to enhance dealing with time accuracy, automated dealing with time can 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 can assist you hold in good standing with different account well being metrics associated to dealing with time, when you’ve got 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 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 rely in opposition to the OTDR metric. If the report accommodates no orders, it means both all the orders have 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.
Essential: Enable 72 hours for the report and metrics to mirror any updates or edits.
How can I preserve a wholesome OTDR?
To maintain a wholesome OTDR with out promise extensions we suggest that you simply do the next:
Assessment your OTDR with out promise extensions metric in your Account Well being dashboard. You can even obtain a report of which orders have been delivered after the supply date with out promise extensions.
Assessment the “Ship by” date for each order. This date corresponds to the anticipated supply date with out promise extensions. Notice 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 primarily based on how lengthy it has taken you traditionally handy 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.
If you’re a Skilled vendor, allow Delivery Settings Automation (SSA), which units correct supply dates to your orders by robotically calculating transit occasions 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 Deliveryto purchase transport labels which were recognized to have a excessive reliability for On-time supply primarily based on Amazon’s knowledge from hundreds of thousands of shipments. These ship strategies have a defend icon subsequent to them, marked as OTDR Protected. You should use Amazon Purchase Delivery by Handle Orders, Delivery API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Delivery. To study extra about buying OTDR protected transport labels, go to Amazon Purchase Delivery.
