What’s Amazon’s coverage for on-time supply with out promise extensions?

Efficient September 25, 2024, you should keep a minimal 90% on-time supply charge (OTDR) with out promise extensions to have seller-fulfilled merchandise listed on Amazon.com. An OTDR beneath 90% may end up in restriction of your skill to have seller-fulfilled merchandise listed. For a terrific buyer expertise, we suggest that you simply keep a 95% or better 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 beneath 90% may end up in restriction of your skill to have seller-fulfilled merchandise listed. To assist present a constructive buyer expertise, we suggest that you simply keep a 95% or better OTDR for all seller-fulfilled orders. 

We’re additionally altering the way in which we measure OTDR to now measure the share of your tracked seller-fulfilled gadgets that had been delivered on or earlier than the seller-promised “Ship by” date previous to promise extensions being added. Earlier than this alteration, OTDR was measured after promise extensions had been added. Promise extensions are extra days that we could add to the supply date to account for logistical elements that will delay a supply corresponding to excessive climate, transportation community constraints, or current historical past of a vendor delivering shipments after their set supply date. This coverage doesn’t apply to provides utilizing the Success by Amazon (FBA) service as a result of sellers usually are not 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 the moment, that will have an effect on you.

What’s going to occur to my account if my OTDR falls beneath the 90% minimal requirement?
An OTDR beneath 90% may end up in restriction of your skill to have seller-fulfilled merchandise listed. If that occurs, we’ll notify you of the coverage violation and you may enchantment by clicking the Submit enchantment button on the high of your Account Well being dashboard to request reinstatement of your capabilities to listing seller-fulfilled merchandise. 

The request might be reviewed inside 72 hours and may embody the next data:
The problems that led to a low on-time supply charge
The actions that you simply’ll take to enhance your on-time supply charge
The steps that you simply’ve taken to forestall future points relating to on-time supply

On subsequent coverage violations, in case your OTDR continues to be beneath 90%, you possibly can enchantment by clicking Submit enchantment on the high of your Account Well being dashboard. 

To get reinstated:

Sellers on Particular person promoting plans or sellers on a Skilled promoting plan however delivery from exterior the US should submit an enchantment request indicating how they may enhance their OTDR. Skilled sellers that ship domestically inside the US might be required to fulfill the 90% OTDR requirement by utilizing the next Amazon free-to-use achievement and delivery instruments for his or her seller-fulfilled orders for the following 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 occasions per SKU, primarily based on how lengthy it normally takes you to move every SKU to carriers. For brand 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 delivery labels that use extremely dependable delivery strategies for each Skilled and Particular person promoting plans. You should utilize 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 had been delivered on or earlier than the seller-promised “Ship by” date. OTDR is the typical of all your tracked shipped gadgets, not only a particular SKU or cargo. 

To calculate OTDR with out promise extensions, we’ll think about 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 technique of being delivered. For instance, in the event 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 had 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 prospects if promise extensions had 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 must be delivered by Thursday (seller-promised “Ship by” date) to be thought of 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 of delivered on-time.

Shipped items might be thought of as OTDR compliant if both the supply occurred on or earlier than the “Ship by” date proven on Vendor Central, or the next 3 situations had been met: 

The shipped SKU was assigned to a delivery template with Transport Settings Automation (SSA) enabled.
Your account has automated dealing with time enabled.
You purchased an “OTDR Protected” delivery label on Amazon Purchase Transport.

Observe: OTDR Safety is barely relevant to Skilled sellers delivery from the US, as the entire required instruments are at present not accessible on Particular person promoting plans or to Skilled sellers which are delivery 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 possibly can handle your supply dates utilizing the instruments we’ve supplied, or you possibly can manually regulate your Transit time and Dealing with time settings. We designed these instruments to set correct supply dates, cut 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 delivery in the event 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 delivery providers. You have to select one of many most well-liked ship strategies within the SSA templates, which can mark the transit time on the delivery template as “Managed by Amazon”.

Automated dealing with time, for Skilled promoting plans, units correct dealing with occasions per SKU primarily based on how lengthy it normally takes you to move every SKU to carriers. You have to be sure that automated dealing with time is enabled in your delivery settings.

Amazon Purchase Transport, for each Skilled and Particular person promoting plans, sells delivery labels that use highly-reliable ship strategies. You should utilize Amazon Purchase Transport via Handle Orders, Transport API, Veeqo, or choose multi-channel integrators with entry to Amazon Purchase Transport. You have to select delivery labels marked as “OTDR Protected” when utilizing Amazon Purchase Transport or Veeqo.

Observe: OTDR Safety is barely accessible for gadgets shipped via Normal Transport, gadgets shipped via different delivery choices corresponding to Free Financial system, Normal Prime, or Premium Transport, usually are not eligible for OTDR safety.

For instance, if a vendor shipped 100 orders and 15 had been delivered late:

State of affairs A: If a vendor didn’t use all three of Amazon’s free achievement and delivery instruments for any of these 15 late deliveries, all 15 of their late deliveries will negatively influence 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 achievement and delivery instruments for five of these 15 late deliveries, solely the ten late shipments that weren’t utilizing Amazon’s instruments will negatively influence OTDR. Because of this, the vendor’s OTDR might be (100-10/100) = 90%.

Observe: OTDR Safety is barely relevant to Skilled sellers delivery from the US, as the entire required instruments are at present not accessible on Particular person promoting plans or to Skilled sellers which are delivery from exterior of the US.

Can I be exempted from the OTDR requirement if supply delays are brought on by 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 delivery to a particular area, Amazon is not going to depend deliveries which are late in consequence in your OTDR. Whether or not a disruption is taken into account to be main is a discretionary choice 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 delivery providers. When you’re delivery inside the contiguous United States (excluding Hawaii, Alaska, and US territories), you possibly can set a most transit time of 5 days for traditional delivery (beforehand 8 days) and eight days at no cost financial system delivery (beforehand 10 days). To be taught extra, go to Default transit time. When you’re delivery internationally to the US, there are at present no modifications to the transit occasions 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 preserve 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 charge (LSR) doesn’t meet the LSR coverage requirement. To see your dealing with time hole, overview your Success 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 charge.
You possibly can see your OTDR metric on the Transport Efficiency web page. Solely orders included within the present OTD defect report depend towards the OTDR metric. If the report accommodates no orders, it means both the entire orders had been delivered on time or they fulfilled utilizing Amazon’s free achievement instruments.
To obtain the OTD defect report, click on View particulars after which Obtain report.

Necessary: Permit 72 hours for the report and metrics to replicate any updates or edits.
How can I keep a wholesome OTDR?

To maintain a wholesome OTDR with out promise extensions we suggest that you simply do the next:

Evaluate your OTDR with out promise extensions metric in your Account Well being dashboard. You may also obtain a report of which orders had been delivered after the supply date with out promise extensions.

Evaluate 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 prospects 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 handy 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 charge (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 robotically calculating transit occasions of your most well-liked ship strategies out of your warehouse to every buyer’s location.

Choose a ship methodology with a excessive reliability to ship your order on time. You may also use Amazon Purchase Transportto purchase delivery labels which have been recognized to have a excessive reliability for On-time supply primarily based on Amazon’s knowledge from tens of millions of shipments. These ship strategies have a protect icon subsequent to them, marked as OTDR Protected. You should utilize 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 delivery labels, go to Amazon Purchase Transport.