New Updates to On-Time Delivery Policy and Shipping Settings
Key Changes and Their Impact on Sellers:
- On-Time Delivery Rate (OTDR) Policy:
- Effective Date: September 25, 2024.
- Requirement: Maintain a minimum 90% OTDR without promise extensions to list seller-fulfilled products.
- Recommendation: Aim for a 95% or greater OTDR for all seller-fulfilled orders.
- Note: This policy does not affect Fulfillment by Amazon (FBA) orders.
- Transit Time Settings:
- Effective Date: August 25, 2024.
- Requirement: Maximum transit time of five days for standard shipping and eight days for free economy shipping within the contiguous US (excluding Hawaii, Alaska, and US territories).
- Exception: Media items such as Books, Magazines, and DVDs are exempt from the 5-day maximum transit time.
- Handling Time Settings:
- Effective Date: September 25, 2024.
- Requirement: Automated handling time will be enabled for sellers with a manual handling time significantly slower than their actual handling time.
Tools and Recommendations for Sellers:
- Shipping Settings Automation (SSA):
- Automates transit time calculations for preferred shipping services.
- Use SSA templates marked as “Managed by Amazon.”
- Automated Handling Time:
- Sets accurate handling times per SKU.
- Ensure automated handling time is enabled in shipping settings.
- Amazon Buy Shipping:
- Use reliable shipping labels marked as “OTDR Protected.”
- Available through Manage Orders, Shipping API, Veeqo, or select multi-channel integrators.
Next Steps for Sellers:
- Review and Adjust: Check your current OTDR and adjust transit and handling time settings to meet new requirements.
- Prepare: Utilize the provided tools to manage delivery dates accurately.
- Monitor: Regularly review your OTDR on your Account Health dashboard and follow recommendations to improve if below the minimum requirement.
Feedback from Sellers:
- Concerns: Many sellers express frustration over unannounced policy changes and how uncontrollable events (e.g., weather, natural disasters) affecting delivery times might still lead to account deactivation.
- Impact: Sellers using Amazon Buy Shipping reported issues with deliveries being marked late despite being shipped on time.
- Amazon’s Response: The updated OTDR measures delivery based on the promised date without extensions, which may lead to discrepancies in reported delivery times.
Conclusion: These updates are crucial for maintaining high customer satisfaction with timely deliveries. Sellers must adjust their settings and use the provided tools to meet the new OTDR standards, ensuring their products remain listed and competitive on Amazon. Being proactive in managing shipping settings and staying informed about policy changes is essential for compliance and maintaining account health.
Update on Reimbursement Automation and Eligibility Window to File Reimbursement Claims
Key Updates and Their Impact on Sellers:
- Reimbursement Automation:
- Effective Date: November 1, 2024.
- Change: Automatic reimbursements for FBA items lost in fulfillment centers.
- Benefit: Saves time and reduces the need for manual claims.
- Tracking: Reimbursements can be tracked in the Reimbursements report on Seller Central.
- Note: Proactive reimbursement covers most warehouse lost, damaged, and customer return cases, but removal claims must still be filed manually.
- Eligibility Window Policy:
- Effective Date: October 23, 2024.
- New Timelines for Manual Claims:
- Fulfillment Center Operations Claim: Must be submitted within 60 days of the item being reported lost or damaged.
- FBA Customer Returns Claim: Can be submitted between 60-120 days after the customer refund or replacement date.
- Removal Claim for Lost Items in Transit: Must be submitted 15-75 days from the shipment-creation date.
- Other Removal Claims: Must be filed within 60 days of the shipment being delivered back to the seller.
Next Steps for Sellers:
- Adjust Processes: Ensure all claims are submitted within the new eligibility windows.
- Monitor: Track automatic reimbursements and manually file claims if automatic reimbursement is not received.
- Plan: Review and update internal procedures to comply with the new policy effective dates.
Conclusion: These updates streamline the reimbursement process, making it more efficient and less time-consuming for sellers. By automating reimbursements for lost FBA items, Amazon aims to improve seller satisfaction. Sellers should adjust their processes to meet the new eligibility windows for manual claims to ensure they do not miss out on reimbursements. Check the Reimbursement Policy
Customer Segmentation with Brand Analytics
- New Audiences:
- Declining Top Tier and Declining Promising Segments: Identify and gain insights on customers who are forecasted to spend less in the next year.
- Benefit: Enables targeted re-engagement strategies to retain these high-value customers.
- Cart Abandoners Audience:
- Purpose: Engage and convert customers who added your products to their cart but did not complete the purchase.
- Benefit: Helps in reducing cart abandonment rates and increasing conversions.
Next Steps for Sellers:
- Utilize Insights: Leverage the new audience segments to create personalized marketing campaigns aimed at retaining Declining Top Tier and Promising customers.
- Engage Cart Abandoners: Develop strategies to re-engage customers who have abandoned their carts, such as targeted promotions or reminder emails.
Conclusion: These enhancements in Brand Analytics provide valuable tools for refining customer segmentation. By focusing on declining customer segments and cart abandoners, sellers can implement targeted strategies to retain customers and boost conversions. Utilizing these features can lead to improved customer engagement and increased sales.
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