What’s Amazon’s coverage for on-time supply with out promise extensions?
Efficient September 25, 2024, you could keep a minimal 90% on-time supply charge (OTDR) with out promise extensions to have seller-fulfilled merchandise listed on Amazon.com. An OTDR under 90% can lead to restriction of your potential to have seller-fulfilled merchandise listed. For a fantastic buyer expertise, we suggest that you simply keep 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 potential to have seller-fulfilled merchandise listed. To assist present a optimistic buyer expertise, we suggest that you simply keep a 95% or better OTDR for all seller-fulfilled orders.
We’re additionally altering the best way 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 extra 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 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 modifications from the coverage because it stands at present, 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 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 prime of your Account Well being dashboard to request reinstatement of your capabilities to listing seller-fulfilled merchandise.
The request will probably be reviewed inside 72 hours and may embody the next data:
The problems that led to a low on-time supply charge
The actions that you simply’ll take to enhance your on-time supply charge
The steps that you simply’ve taken to stop future points concerning 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 delivery from outdoors the US should submit an enchantment request indicating how they are going to enhance their OTDR. Skilled sellers that ship domestically throughout the US will probably be required to satisfy the 90% OTDR requirement by utilizing 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 via 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 often takes you to move every SKU to carriers. For brand new SKUs, the default dealing with time will apply till there are sufficient shipments on 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 use Amazon Purchase Transport via Handle Orders, Transport API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Transport.
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 think about 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 latest 7 days because the shipments from final 7 days should still be within the strategy 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 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 clients 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 acquired on a Monday, this order would should 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 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 items 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.
Notice: OTDR Safety is just 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 are 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 may handle your supply dates utilizing the instruments we’ve supplied, or you may manually modify your Transit time and Dealing with time settings. We designed these instruments to set correct supply dates, cut 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 gadgets shipped via customary delivery in case you use all three instruments as follows:
Transport Settings Automation (SSA), for Skilled promoting plans, units correct supply dates via automated transit time calculations of your most well-liked delivery companies. You need to 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 occasions per SKU primarily based on how lengthy it often takes you to move every SKU to carriers. You need to be 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 use Amazon Purchase Transport via Handle Orders, Transport API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Transport. You need to select delivery labels marked as “OTDR Protected” when utilizing Amazon Purchase Transport or Veeqo.
Notice: OTDR Safety is just obtainable for gadgets shipped via Commonplace Transport, gadgets shipped via different delivery choices resembling Free Financial system, Commonplace Prime, or Premium Transport, should not 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 success and delivery instruments for any of these 15 late deliveries, all 15 of their late deliveries will negatively influence their OTDR. Consequently, their OTDR will probably be (100-15/100) = 85%.
Situation 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 influence OTDR. Consequently, the vendor’s OTDR will probably be (100-10/100) = 90%.
Notice: OTDR Safety is just 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 are 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. Nonetheless, if there’s a main disruption occasion that impacts all sellers delivery to a selected area, Amazon is not going to rely deliveries which are 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 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 companies. If you happen to’re delivery throughout the contiguous United States (excluding Hawaii, Alaska, and US territories), you may set a most transit time of 5 days for traditional delivery (beforehand 8 days) and eight days at no cost financial 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 occasions which you could 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 can assist you preserve 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 is not going to be deactivated in case your late cargo charge (LSR) doesn’t meet the LSR coverage requirement. To see your dealing with time hole, overview 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 charge.
You may see your OTDR metric on the Transport Efficiency web page. Solely orders included within the present OTD defect report rely towards the OTDR metric. If the report comprises 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 keep a wholesome OTDR?
To maintain a wholesome OTDR with out promise extensions we suggest that you simply do the next:
Evaluate your OTDR with out promise extensions metric in your Account Well being dashboard. You too can obtain a report of which orders had been delivered after the supply date with out promise extensions.
Evaluate 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 clients 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 handy 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 charge (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 on 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 too can use Amazon Purchase Transportto purchase delivery 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 protect icon subsequent to them, marked as OTDR Protected. You should use Amazon Purchase Transport via 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.
