Amazon Shipping Policy Update! This indicator cannot be lower than 90%!

Amazon Shipping Policy Update! This indicator cannot be lower than 90%!

Normal, once there is data abnormality, such as sales are falling, conversion rate is abnormal, flow is 0, etc., we need to deal with it in time. Regarding data analysis, we will mainly analyze store traffic data, sales data and advertising data. Through these data, we can observe whether today's sales have increased or decreased. If there is a problem, we can accurately know which link has the problem and make reasonable adjustments.

Amazon recently released an update to its self-delivery performance indicator policy:


Starting September 25, 2024, self-delivery sellers will need to maintain at least a 90% on-time delivery rate (OTDR) without extending their commitments in order to list their self-delivered products on Amazon.com.


For a good customer experience, Amazon recommends that sellers maintain an OTDR of 95% or higher for all seller-fulfilled orders. Of course, this policy does not apply to offers using the Fulfillment by Amazon (FBA) service , as sellers are not responsible for on-time delivery commitments for FBA orders.


Furthermore, Amazon will first focus on addressing issues with sellers with the worst on-time delivery performance.


PART
0 1

What is On-Time Delivery Rate (OTDR)?


On-Time Delivery Rate (OTDR) is an indicator to measure whether all self-delivered goods are delivered to buyers on or before the "delivery date" promised by the seller.


It should be noted that the total delivery time includes preparation time, transportation time, holidays and weekends, and additional buffer time. In addition, this date is calculated based on the delivery date configured by the seller, without considering the promised extension, and Amazon calculates the preparation time and transportation time based on working days.


PART
02

On-time delivery rate calculation formula



If a seller has 130 orders with promised delivery dates in the past 21 days, and 30 of them have promised delivery dates within the last 7 days, then when calculating OTDR, the 30 orders within the last 7 days will be excluded (130-30=100). Of the remaining 100 orders, if 90 orders are delivered on or before the promised "delivery date", then your OTDR is 90%.


☑How to check?


Log in to the seller platform, view the OTDR through "Performance > Account Status > Delivery Performance > On-Time Delivery Rate" , download the OTDR report, and you can find the orders that caused the OTDR performance to fail to meet the requirements.


PART
03

To improve your OTDR, you can:


1. Manually adjust the shipping time and preparation time.


2. Make good use of Amazon's "Buy Shipping" service to ship goods to meet the estimated delivery time promised to buyers.


-Path : Manage Orders > Shipping API > Veeqo
- Update lead times or upload an inventory file template on the Manage Inventory page in Seller Central.
- Set transit times automatically or manually in Shipping settings.
- When using Amazon Buy Shipping or Veeqo, you must select a shipping label marked "On-Time Delivery Rate Protection".
- The service can be ordered from management orders, own API or third-party ERP system service providers.


Currently, only self-delivery professional sellers who ship within the United States and use the three tools of Shipping Setup Automation (SSA), Buy Shipping, and Automatic Stocking Time (AHT) at the same time can obtain OTDR exemption. Professional/individual sellers who ship outside the United States cannot enable the Automatic Stocking Time (AHT) function.


PART
04

If your OTDR is less than 90%:


For self-fulfilling merchants shipping from China: Use the Shipping Setup Automation (SSA) tool to more accurately estimate shipping times, and use Buy Shipping to meet order commitment times.

Professional sellers who ship from the United States: You can use three Amazon tools at the same time, Shipping Setup Automation (SSA), Buy Shipping, and Automatic Stocking Time (AHT) . OTDR will not be affected by delayed order delivery.

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