What’s Amazon’s coverage for on-time supply with out promise extensions?
Efficient September 25, 2024, you should 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 incredible buyer expertise, we advocate that you just preserve a 95% or higher 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 optimistic buyer expertise, we advocate that you just preserve a 95% or higher 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 have been delivered on or earlier than the seller-promised “Ship by” date previous to promise extensions being added. Earlier than this transformation, 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 equivalent to 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 aren’t chargeable for on-time supply guarantees for FBA orders.
Observe: 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’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 capacity to have seller-fulfilled merchandise listed. If that occurs, we’ll notify you of the coverage violation and you may attraction by clicking the Submit attraction button on the prime of your Account Well being dashboard to request reinstatement of your capabilities to checklist seller-fulfilled merchandise.
The request might be reviewed inside 72 hours and will embody 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’ll be able to attraction by clicking Submit attraction 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 attraction request indicating how they’ll 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 success and transport 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 instances per SKU, primarily based on how lengthy it often 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 in your automated dealing with time to be calculated.
Amazon Purchase Transport to purchase transport labels that use extremely dependable transport 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 have been delivered on or earlier than the seller-promised “Ship by” date. OTDR is the common of all your tracked shipped gadgets, 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 be within the means 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 might 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 clients 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 might be in 3 enterprise days.
So, if an order is obtained 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. No matter 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 might 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 circumstances have been met:
The shipped SKU was assigned to a transport template with Transport Settings Automation (SSA) enabled.
Your account has automated dealing with time enabled.
You got an “OTDR Protected” transport label on Amazon Purchase Transport.
Observe: OTDR Safety is barely relevant to Skilled sellers transport from the US, as all the required instruments are at present not out there on Particular person promoting plans or to Skilled sellers which can 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’ll be able to 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 via normal transport should 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 transport companies. You have 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 instances per SKU primarily based on how lengthy it often takes you to go every SKU to carriers. You have to be sure that automated dealing with time is enabled in your transport settings.
Amazon Purchase Transport, for each Skilled and Particular person promoting plans, sells transport 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 have to select transport labels marked as “OTDR Protected” when utilizing Amazon Purchase Transport or Veeqo.
Observe: OTDR Safety is barely out there for gadgets shipped via Normal Transport, gadgets shipped via different transport choices equivalent to Free Economic system, Normal Prime, or Premium Transport, aren’t 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 impression their OTDR. Because of this, their OTDR might 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 impression OTDR. Because of this, the vendor’s OTDR might be (100-10/100) = 90%.
Observe: OTDR Safety is barely relevant to Skilled sellers transport from the US, as all the required instruments are at present not out there 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 rely deliveries which can 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 modifications are you making to dealing with time and transit time settings?
Transit time modifications: As of August 25, 2024, transit time necessities might be up to date to additional align with the supply capabilities of transport companies. In the event you’re transport inside the contiguous United States (excluding Hawaii, Alaska, and US territories), you’ll be able to set a most transit time of 5 days for traditional transport (beforehand 8 days) and eight days without cost financial system transport (beforehand 10 days). To be taught extra, go to Default transit time. In the event you’re transport internationally to the US, there are at present no modifications to the transit instances which you could 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 maintain 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 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’ll be able to 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 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 advocate that you just do the next:
Overview your OTDR with out promise extensions metric in your Account Well being dashboard. You too can obtain a report of which orders have 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 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 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.
In case you are a Skilled vendor, allow Transport Settings Automation (SSA), which units correct supply dates in your orders by mechanically 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 too can use Amazon Purchase Transportto 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 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 transport labels, go to Amazon Purchase Transport.
