What’s Amazon’s coverage for on-time supply with out promise extensions?
Efficient September 25, 2024, you need to keep a minimal 90% on-time supply charge (OTDR) with out promise extensions to have seller-fulfilled merchandise listed on Amazon.com. An OTDR beneath 90% can lead to restriction of your skill to have seller-fulfilled merchandise listed. For a fantastic buyer expertise, we suggest that you just 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 beneath 90% can lead to restriction of your skill to have seller-fulfilled merchandise listed. To assist present a optimistic buyer expertise, we suggest that you just keep 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 objects that had been delivered on or earlier than the seller-promised “Ship by” date previous to promise extensions being added. Earlier than this modification, 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 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 provides utilizing the Achievement by Amazon (FBA) service as a result of sellers should not chargeable for on-time supply guarantees for FBA orders.
Observe: We’ll talk as we roll out the OTDR coverage, and any adjustments from the coverage because it stands right this moment, that will have an effect on you.
What is 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 skill 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 checklist seller-fulfilled merchandise.
The request can be reviewed inside 72 hours and will embrace the next info:
The problems that led to a low on-time supply charge
The actions that you just’ll take to enhance your on-time supply charge
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 beneath 90%, you may 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’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 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 popular 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 on 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 need to use 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 proportion of your tracked seller-fulfilled objects that had 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 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 still be within the technique of being delivered. For instance, if you happen to 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 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 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 can be in 3 enterprise days.
So, if an order is obtained 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. No matter 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 can 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 circumstances 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 purchased an “OTDR Protected” transport label on Amazon Purchase Delivery.
Observe: OTDR Safety is barely relevant to Skilled sellers transport from the US, as the entire 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’ll be able to handle your supply dates utilizing the instruments we’ve offered, 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 objects shipped by way of normal transport if you happen to 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 popular transport companies. You could select one of many most popular 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 could 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 need to use Amazon Purchase Delivery by way of Handle Orders, Delivery API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Delivery. You could select transport labels marked as “OTDR Protected” when utilizing Amazon Purchase Delivery or Veeqo.
Observe: OTDR Safety is barely accessible for objects shipped by way of Customary Delivery, objects shipped by way of different transport choices comparable to Free Financial system, Customary Prime, or Premium Delivery, 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 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 can 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 can be (100-10/100) = 90%.
Observe: OTDR Safety is barely relevant to Skilled sellers transport from the US, as the entire 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 is not going to depend deliveries which might be late in consequence 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 can be up to date to additional align with the supply capabilities of transport companies. When you’re transport inside the contiguous United States (excluding Hawaii, Alaska, and US territories), you may set a most transit time of 5 days for normal transport (beforehand 8 days) and eight days without spending a dime economic system transport (beforehand 10 days). To be taught extra, go to Default transit time. When 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 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 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 charge (LSR) doesn’t meet the LSR coverage requirement. To see your dealing with time hole, assessment 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 charge.
You’ll be able to see your OTDR metric on the Delivery Efficiency web page. Solely orders included within the present OTD defect report depend 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 achievement 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 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 just do the next:
Overview your OTDR with out promise extensions metric in your Account Well being dashboard. It’s also possible to 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. Observe 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 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 Delivery Settings Automation (SSA), which units correct supply dates on your orders by mechanically calculating transit occasions of your most popular 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. It’s also possible to use Amazon Purchase Deliveryto purchase transport labels which were recognized to have a excessive reliability for On-time supply primarily based on Amazon’s information from tens of millions of shipments. These ship strategies have a defend icon subsequent to them, marked as OTDR Protected. You need to use 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.
