Common terminology used for Sellers who handle direct fulfillment of products sold on Amazon. Direct fulfillment by a seller is often referred to as Fulfillment By Merchant (FBM) or Merchant Fulfilled Network (MFN):
A-to-Z Guarantee Claim: A policy implemented by Amazon Store to protect buyer's rights. If buyers are not satisfied with the purchased goods or services, they can initiate an A-to-Z Guarantee Claim to defend their interests.
Cancel rate (CR): Cancellation Rate refers to the percentage of all orders canceled by the Seller to the total number of orders within a given 7-day period. It includes all orders canceled by the Seller, except for orders that the buyers requested to cancel using the order cancellation option in their Amazon accounts.
Late Shipment Rate (LSR): Late Shipment Rate refers to the percentage of the total number of orders confirmed to be delivered after the estimated delivery time within a 10-day or 30- day period.
Valid tracking rate (VTR): Valid Tracking Rate refers to the percentage of all shipments with a valid tracking ID to the total shipments within a given 30-day period. The tracking ID can only be considered to be valid after at least one scan is recorded by the logistics carrier.
On-time delivery rate (OTDR): On-Time Delivery Rate refers to the percentage of all shipments delivered within the estimated delivery time to the total shipments tracked.
Order Defect Rate (ODR): Order Defect Rate is a crucial indicator to measure your ability to provide a good buyer experience. ODR refers to the percentage of all orders with one or more defects to the total number of orders in a given 60-day period. ODR includes a negative feedback rate, A-to-Z Guarantee Claim rate, and chargeback rate. Sellers cannot sell products on Amazon if the ODR is higher than 1%. ODR higher than 1% may result in account suspension.
Total Delivery Time: Total Delivery Time refers to the time taken from the buyer placing an order to the date of receipt of the products ordered. The calculation formula is total delivery time = handling time + transit time + holidays.
Handling time: Handling Time refers to the estimated time from the buyer placing an order to the date when the Seller delivers the product to the logistics carrier.
Transit time (Also known as delivery time): Transit Time refers to the estimated time from the Seller delivering the product to the logistics carrier to the date when the buyer receives the product.
Tracking ID: The tracking ID is the waybill number provided by the logistics carrier that undertakes the fulfillment of the order. Through the tracking ID, both the Seller and the buyer can check the fulfillment status of the order. The tracking ID can only be considered valid after at least one scan is recorded by the logistics carrier.
Default shipping address: It contains information such as the actual shipping address, email address, and phone number of the shipping order. Such information is saved in your account and automatically displayed when you select an address in the Pages of "Buy Shipping Services" preferences and "Shipping Settings."
Service Level Agreement (SLA): Service Level Agreement means that the Seller promises that the order will be delivered within the standard days by using this fulfillment method. Check the Fulfillment service level agreement for each region.
SKU: Stock Keeping Unit is the basic unit measuring stock in and out, in the piece, box, or pallet.
United States Postal Service (USPS): United States Postal Service is one of the logistics carriers that Sellers can choose on Amazon. Please refer to the USPS Domestic Delivery and USPS International Delivery pages for more details.