Detailed Analysis of the New Policy
Starting July 1st, Amazon FBA will enforce a new appointment policy, imposing stricter requirements on sellers and introducing three key defect evaluation metrics:
1. PO Accuracy for Truck Deliveries
2. Rescheduling of Appointments
3. Missed Appointments Due to NCNS (No-Call, No-Show)
Core Requirement: PO Accuracy
• PO Accuracy: This metric measures the consistency between the number of Purchase Orders (POs) entered during the appointment process and the actual number received by Amazon. Under the new policy, Amazon mandates that the defect rate must remain below 5%, with PO accuracy exceeding 95%.
• Impact and Consequences: If logistics service providers fail to meet these standards, particularly if the defect rate exceeds 50%, they will face a 30-day account suspension as a penalty.
Breakdown of Amazon’s Defect Evaluation Metrics
Amazon’s new FBA appointment policy introduces three categories of defect evaluation metrics to ensure smooth and accurate delivery processes. Here’s a detailed breakdown:
1. Scheduling Defects: Issues arising from discrepancies between the POs scheduled for delivery and the actual goods loaded onto the delivery vehicle.
2. Arrival Defects: Problems related to the timing and readiness of deliveries, including appointment cancellations, rescheduling, and acceptance by Amazon’s warehouses.
3. Receiving Defects: Discrepancies between the quantity of goods Amazon receives and the PO quantity specified in the appointment, as well as misdelivery issues.
Seller Response Strategies for Smooth Amazon FBA Operations
To navigate Amazon’s new FBA appointment policy effectively, sellers should implement the following strategies:
1. Ensure PO Accuracy and Timeliness:
• Verification: Double-check that the Purchase Order (PO) accurately corresponds with both the designated Amazon warehouse and the actual shipping warehouse. This reduces the risk of discrepancies that could lead to defects.
• Timing: Ensure POs are created and managed in a timely manner, avoiding last-minute changes that could disrupt the delivery process.
2. Notify Amazon in Advance: If you plan to withhold shipments for any reason, inform Amazon well in advance. Without proper notification, any set appointments may become non-modifiable, leading to potential disruptions in your withholding process.
3. Recreate or Reactivate POs: For POs that have expired or become invalid, it’s important to recreate or reactivate them promptly. Ensure all labeling is completed before delivery to avoid any receiving defects at Amazon’s end.
Recommendations and Strategies
1. Precise PO Numbering:
As peak sales season approaches, provide accurate PO numbers and submit delivery plans as early as possible. This helps in aligning with Amazon’s policies and prevents violations that could result in penalties, such as account suspension.
2. Multi-Warehouse Strategy: For large shipment volumes, consider using a multi-warehouse strategy. This approach spreads the risk and avoids complications that may arise if a single PO cannot be reused due to a truck’s inability to complete delivery in one trip.
Conclusion
Amazon’s new FBA appointment policy is designed to improve logistics efficiency and accuracy. By quickly adapting to these new requirements, sellers can optimize their logistics management, ensuring seamless warehouse entry and minimizing the risk of penalties for non-compliance. Implementing these strategies will help sellers navigate the complexities of the new policy and maintain smooth operations during peak sales periods.