Amazon Tightens On-Time Delivery (OTDR) Policy: What Sellers Need to Know
New Requirements for Seller-Fulfilled Orders and Shipping Settings
By ChannelMAX Staff Writer
July-2024#25
Amazon is making changes to its on-time delivery policy (OTDR) and shipping settings, effective August and September 2024, to improve customer experience and reduce late deliveries. These updates primarily affect sellers who fulfill orders themselves, not those using Fulfillment by Amazon (FBA). The company made the announcement recently on the Seller Central platform. Here, we try to delve deeper into the new OTDR policy.
Minimum On-Time Delivery Rate (OTDR)
Starting September 25, 2024, sellers must maintain a minimum 90% OTDR without promise extensions for their seller-fulfilled products to be listed on Amazon.com. Amazon will begin by addressing sellers with the lowest OTDR performance. While a 90% OTDR is the minimum requirement, sellers are encouraged to aim for a 95% or greater OTDR for all seller-fulfilled orders.
Updated Transit Time Settings
On August 25, 2024, Amazon will update its transit time requirements to match the delivery capabilities of shipping services. For standard shipping within the contiguous United States (excluding Hawaii, Alaska, and US territories), the maximum transit time will be five days. For free economy shipping, the maximum transit time will be eight days. This applies to all SKUs except media such as books, magazines, and DVDs.
Automated Handling Time
To improve the accuracy of handling time, Amazon will enable automated handling time for sellers with a manually configured handling time that is two or more days slower than their actual handling time. This will take effect on September 25, 2024. Sellers can review the time gap they are handling in the Fulfillment Insight dashboard.
Also Read: Amazon Updates FBA Reimbursement Policy: What Sellers Need to Know
Tools for Accurate Delivery Dates
Amazon provides tools to help sellers manage their delivery dates and meet the new OTDR requirements:
Shipping Settings Automation (SSA): SSA sets accurate delivery dates through automated transit time calculations of preferred shipping services for Professional selling plans. Sellers must choose one of the preferred shipping methods in the SSA templates.
Automated Handling Time: For Professional selling plans, automated handling time sets accurate handling times per SKU based on how long it usually takes to pass each SKU to carriers.
Amazon Buy Shipping: For both Professional and Individual selling plans, Amazon Buy Shipping sells shipping labels that use highly reliable shipping methods. Sellers must choose shipping labels marked as "OTDR Protected" when using Amazon Buy Shipping.
Also Read: What is the Amazon Vine Program? Check the Requirements, Costs and Benefits for Sellers
OTDR Protection
Sellers who use all three tools mentioned above will receive OTDR protection from late deliveries on items shipped through standard shipping. Amazon will make calculations on their behalf that affect OTDR.
Seller Feedback and Concerns
Some sellers have expressed concerns about the new policy, particularly regarding the impact of carrier delays. They argue that factors outside their control, such as weather or USPS delays, can affect their OTDR. Others question whether Amazon will be held to the same standards, as they have experienced late deliveries from FBA orders. Concerns have also been raised about potential exceptions during peak holiday seasons when carrier delays are more common.
Stay Informed
Sellers will receive an email with their current OTDR and recommendations on how to improve if they are below the minimum requirement. They can also review their OTDR on the Account Health dashboard or visit the On-time Delivery page for more information.
These updates are designed to improve the customer experience by ensuring more accurate and reliable delivery times. Sellers are encouraged to familiarize themselves with the new policies and utilize the tools provided to ensure compliance and maintain a positive selling experience on Amazon.
Also Read: Amazon Urges Sellers to Optimize Peak Storage with Capacity Manager and AWD
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
By ChannelMAX Staff Writer
July-2024#25
Amazon is making changes to its on-time delivery policy (OTDR) and shipping settings, effective August and September 2024, to improve customer experience and reduce late deliveries. These updates primarily affect sellers who fulfill orders themselves, not those using Fulfillment by Amazon (FBA). The company made the announcement recently on the Seller Central platform. Here, we try to delve deeper into the new OTDR policy.
Minimum On-Time Delivery Rate (OTDR)
Starting September 25, 2024, sellers must maintain a minimum 90% OTDR without promise extensions for their seller-fulfilled products to be listed on Amazon.com. Amazon will begin by addressing sellers with the lowest OTDR performance. While a 90% OTDR is the minimum requirement, sellers are encouraged to aim for a 95% or greater OTDR for all seller-fulfilled orders.
Updated Transit Time Settings
On August 25, 2024, Amazon will update its transit time requirements to match the delivery capabilities of shipping services. For standard shipping within the contiguous United States (excluding Hawaii, Alaska, and US territories), the maximum transit time will be five days. For free economy shipping, the maximum transit time will be eight days. This applies to all SKUs except media such as books, magazines, and DVDs.
Automated Handling Time
To improve the accuracy of handling time, Amazon will enable automated handling time for sellers with a manually configured handling time that is two or more days slower than their actual handling time. This will take effect on September 25, 2024. Sellers can review the time gap they are handling in the Fulfillment Insight dashboard.
Also Read: Amazon Updates FBA Reimbursement Policy: What Sellers Need to Know
Tools for Accurate Delivery Dates
Amazon provides tools to help sellers manage their delivery dates and meet the new OTDR requirements:
Shipping Settings Automation (SSA): SSA sets accurate delivery dates through automated transit time calculations of preferred shipping services for Professional selling plans. Sellers must choose one of the preferred shipping methods in the SSA templates.
Automated Handling Time: For Professional selling plans, automated handling time sets accurate handling times per SKU based on how long it usually takes to pass each SKU to carriers.
Amazon Buy Shipping: For both Professional and Individual selling plans, Amazon Buy Shipping sells shipping labels that use highly reliable shipping methods. Sellers must choose shipping labels marked as "OTDR Protected" when using Amazon Buy Shipping.
Also Read: What is the Amazon Vine Program? Check the Requirements, Costs and Benefits for Sellers
OTDR Protection
Sellers who use all three tools mentioned above will receive OTDR protection from late deliveries on items shipped through standard shipping. Amazon will make calculations on their behalf that affect OTDR.
Seller Feedback and Concerns
Some sellers have expressed concerns about the new policy, particularly regarding the impact of carrier delays. They argue that factors outside their control, such as weather or USPS delays, can affect their OTDR. Others question whether Amazon will be held to the same standards, as they have experienced late deliveries from FBA orders. Concerns have also been raised about potential exceptions during peak holiday seasons when carrier delays are more common.
Stay Informed
Sellers will receive an email with their current OTDR and recommendations on how to improve if they are below the minimum requirement. They can also review their OTDR on the Account Health dashboard or visit the On-time Delivery page for more information.
These updates are designed to improve the customer experience by ensuring more accurate and reliable delivery times. Sellers are encouraged to familiarize themselves with the new policies and utilize the tools provided to ensure compliance and maintain a positive selling experience on Amazon.
Also Read: Amazon Urges Sellers to Optimize Peak Storage with Capacity Manager and AWD
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
Disclaimer:
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.