Amazon's weird new rules! Setting a threshold for order processing?

Amazon's weird new rules! Setting a threshold for order processing?


In 2024, Amazon once again brings new challenges to sellers!

Recently, Amazon announced that it will set a "minimum threshold" for sellers' order processing capabilities in order to avoid an increase in delayed delivery rates. However, as soon as this policy was introduced, many sellers expressed "great pressure" and some even directly complained, "Don't make things worse!"



What is the order processing capacity threshold?


Starting from February 7, Amazon will automatically set an "order processing capacity threshold" for each seller in the background. This threshold is calculated based on the seller's average daily order volume in the past 30 days.

Simply put, if the seller has a large order volume in the past 30 days, Amazon will set a "safety valve" for the seller. If the order volume exceeds this threshold, Amazon will automatically delay delivery by one day so that the seller has more time to process the order.

Every week, Amazon updates this threshold based on the seller's actual order processing situation.

If a seller's order volume suddenly increases, the threshold will automatically rise to give the seller more room to handle it.



How does threshold setting work?


Merchants can set their own daily order processing limit. If you have processed an average of 100 orders in the past 30 days, Amazon may set the threshold between 80-90 orders.

In other words, if the amount exceeds this number, the customer will see a one-day delayed delivery notice, and the seller will also get an extra day of processing time.

This policy applies primarily to orders with standard shipping and free economy shipping, but does not include Prime's premium shipping or self-fulfillment orders.

Sellers’ voice: Dissatisfaction and pressure coexist


Although the starting point of Amazon's policy is to help sellers better manage orders and improve consumer experience, many sellers are dissatisfied with it: "These policies were announced suddenly without any notice and were implemented directly, which makes it difficult for us to cope with it.
"This is completely restricting sales and setting a limit threshold, which goes against business logic!"

Some sellers are even worried that after implementing this policy, Amazon may issue more charging notices and even increase sellers' operating costs.



How to deal with the new regulations? How should sellers adjust their operating strategies?


How should sellers respond to this change?

It is recommended that you start from the following aspects:

Flexible adjustment of inventory management: According to the new policy, reasonably predict sales volume and try to avoid order processing volume exceeding the threshold. Make stocking plans in advance to avoid inventory backlogs.

Optimize the delivery process: optimize warehouse management and delivery speed, improve overall order processing capabilities, and reduce the impact of threshold restrictions.

Maintain good communication with Amazon: If there are special circumstances or questions about threshold settings, contact Amazon customer service in a timely manner to seek more flexibility.

Although Amazon’s policies seem to provide more protection for sellers, in actual operation they add many uncertainties. Sellers must be prepared to deal with these changes and remain flexible.

As one seller said: “Amazon’s policies are like the weather, they change at any time.

What we can do is to always have an umbrella ready so as not to get too wet.

"I hope all sellers can adjust their mindset, optimize operations, and meet challenges in the new environment!

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