Amazon has made major adjustments to its order processing policy, and sellers are complaining!

Amazon has made major adjustments to its order processing policy, and sellers are complaining!


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Recently, Amazon released the latest announcement, which will set a minimum threshold for sellers' order processing capabilities to avoid an increase in delayed delivery rates.

01 Amazon updates automatic minimum threshold for order processing capacity
Starting February 24, a minimum threshold will be automatically set for sellers in the Order Processing Capacity feature in Seller Central. This threshold is a conservative estimate based on the seller's average daily order volume over the past 30 days to show the seller's capacity to process orders.
The announcement is as follows:
  • The system automatically sets the minimum order processing capacity: based on the average daily order volume in the past 30 days, calculates the minimum number of orders that the seller can process.
  • Automatic weekly updates: The system will re-evaluate the seller's order processing capabilities every week and adjust the minimum value accordingly.
  • When the order volume reaches the limit, the delivery date is automatically extended: When the order reaches the order processing capacity limit set by the seller, Amazon will display a one-day delayed delivery commitment on the front end to ensure that the seller has enough fulfillment time.
  • Sellers can set higher order processing capabilities on their own, but they cannot be lower than the minimum threshold set by Amazon.
  • Applicability: This policy applies only to Standard and Free Economy Shipping and does not affect Premium Shipping or Seller-Fulfilled Prime orders.
Judging from the content of the announcement, this was originally a good thing for sellers, but in reality, sellers complained a lot.

Some sellers pointed out that the average daily order processing volume within 30 days is not equivalent to the actual number of orders that can be processed on a certain day . Changes in the market environment will affect the seller's fulfillment ability, and it is absurd to let Amazon, which does not understand its own situation, decide how many orders they can process every day.

Another seller believes that this is tantamount to forcing sellers to roll inward in disguise, increasing the daily order processing volume in order to raise the threshold . Under this mechanism, sellers will be compared with each other, and merchants with stronger processing capabilities will receive more traffic and orders, while small sellers may be completely crushed.


02 Pros and Cons of the New Regulations and Countermeasures

Amazon's automatic minimum threshold adjustment for order processing capacity does help optimize the overall fulfillment system and improve customer experience in the long run, but in the short term, it has imposed certain restrictions on sellers' flexibility. In particular, sellers with large order fluctuations need to plan their operating strategies in advance to ensure that they can adapt to the new adjustment rules.


Amazon front desk displays the arrival date


Favorable factors

1. Reduce the delayed shipment rate and avoid damage to account performance

Amazon automatically adjusts delivery promise times to help sellers maintain good performance indicators and avoid delayed shipments or order cancellations due to excess orders.

2. Data-driven fulfillment management to improve customer experience

The calculation of order processing capacity is based on historical data, allowing sellers to more accurately predict their fulfillment capabilities and avoid unnecessary order backlogs.

3. Reduce overselling risks and maintain good operating conditions

After the system adjustment, sellers will not exceed their fulfillment capabilities due to excessive order volume, which will help optimize supply chain management.


challenge

1. Small sellers or sellers with large order fluctuations may be affected

2. Reduced operational flexibility and impact on inventory management

3. Pay extra attention to account health


Coping strategies

1. Plan inventory and manpower in advance to ensure that order processing capacity can meet peak season demand.

2. Optimize the delivery method. FBA (Amazon Logistics) is still a better choice. It can help sellers improve order processing capabilities and avoid being restricted by delivery issues.

3. Continue to pay attention to the background data, regularly check the order processing capacity threshold provided by Amazon, and adjust it in time.

4. Make good traffic and conversion strategies. If sellers find that competitors have higher order processing capabilities and traffic is tilted towards sellers with high processing capabilities, they can consider optimizing advertising and enhancing customer service to maintain competitiveness.


The implementation of this new regulation may bring about changes in the market structure. Sellers need to keep up with platform adjustments and rationally plan operational strategies to ensure the sustainable growth of their own businesses.

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