Amazon launches new shipment performance feature! Shipments exceeding standards may result in FBA restrictions!

Amazon launches new shipment performance feature! Shipments exceeding standards may result in FBA restrictions!


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For people, suffering is like a hammer hitting a blank. What should be knocked off are fragile iron filings, and what will be forged is a sharp steel knife.

——Chekhov



It is learned that data shows that as online shopping reaches an all-time high, the return rate in the US e-commerce market has also reached a historical high. In 2021, the average return cost even accounted for 20.8% of the order value, exacerbating the financial burden of cross-border sellers.
 
Many sellers have lamented that after working on Amazon for a long time, their ability to withstand shocks has become much stronger.
 
It is learned that recently, after Amazon FBA increased its surcharge by 5% and mistakenly set up 0 yuan purchase, Amazon once again dropped a bombshell: it launched a new feature called "Shipment Performance".
 


Amazon launches new “shipment performance” feature




As we all know, Amazon performance indicators are a code of conduct set for third-party sellers. Once the performance indicators are not met, the seller's store may face the risk of having its sales privileges revoked or its account blocked. The indicator status includes information such as the seller's order defect rate, cancellation rate, and late shipment rate.
 
In addition, Amazon's Inventory Performance Index (IPI) is also well known to sellers as a benchmark for Amazon to identify and punish sellers with slow inventory turnover. If the IPI is too low, Amazon will limit the seller's inventory or even require the seller to pay overage.
 
Recently, it was learned that Amazon’s US and European sites announced the launch of a shipment performance dashboard.
 
 
Before the announcement was issued, some sellers also reported on the forum that Amazon’s backend had updated a new feature related to performance appraisal: the shipment performance dashboard.
 
The picture comes from Zhiwubuyan

It is understood that this shipment performance is based on the seller’s FBA shipments in the past 120 days , and currently includes the following five aspects:

1. Incorrect labeling - Product related
2. Missing label - Product related
3. The quantity of goods in the box is inaccurate
4. Other labeling issues - product related
5. The goods in the box do not meet expectations


 
In response to this, Amazon also stated in the backend problem guidance that the launch of the shipment performance dashboard is to help sellers manage shipments more efficiently and avoid shipment problems such as labeling and preprocessing errors, quantity differences, and safety issues.
 
We learned that Amazon actually updated its FBA shipment policy three months ago.
 


Amazon updates FBA shipment policy




It is learned that on January 19, Amazon US Station issued an announcement stating that starting from April 1, 2022 , Amazon will update the FBA shipment policy. If sellers perform the following three operations, it will lead to delays in receiving inventory and listing time:

1. Delete the shipment after approving the inbound transportation plan;
2. Sending the shipment along the wrong route;
3. Sending incomplete shipments, such as shipments that are in canceled or deleted status.

It is worth noting that if sellers send canceled or deleted shipments to Amazon, not only may these shipments be rejected, but the seller’s eligibility to send other goods to Amazon’s fulfillment centers may also be suspended.
 
 
In addition, today, Amazon’s US and European sites also announced that starting from April 18 , in addition to the extra-large storage type, Amazon will also launch another extra-large storage type for sellers to facilitate sellers to manage inventory and quantity limits of large goods.
 
 
Amazon also stated in the announcement that sellers' FBA quantity limits will be determined by oversized and extra-large items, and the decision is based on the seller's past sales and forecasted sales, and adjusted according to the capacity of the operations center.
 
So, what impact does the shipment performance dashboard launched by Amazon have on cross-border sellers?
 
The following three points were drawn from the discussions among sellers:

1. It can enable sellers to have a clearer understanding of the error tolerance rate of delivery;
2. Standardize shipment standards. Sellers cannot create or delete their own shipments and SKUs at will.
3. If the shipment performance indicators are exceeded, FBA may be restricted or even the FBA shipment rights may be revoked.


  The picture comes from Zhiwubuyan

Based on this, we also remind all sellers to operate in compliance with regulations, pay attention to standardized shipment standards, and always pay attention to relevant policies released by Amazon to avoid shipment restrictions, which will make the already severe logistics problems even worse.
 
What do sellers think of Amazon's new shipment performance? Welcome to discuss in the comments section~


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