How is operational performance measured by Amazon?
Amazon looks at a number of KPIs in relation to a Vendor’s shipments to determine the Vendor’s operational performance. These include Efficient Receive issues such as carton or pallet labels, PO on time accuracy, expired product, overweight cartons and oversized cartons.
Amazon will also issue chargebacks if a Vendor experiences continued poor operational performance. The most expensive chargebacks we’ve seen typically come from Efficient Receive problems.
What are the consequences of poor operational performance on Amazon?
Similar to other retailers, Amazon does not like doing business with suppliers that continually mis-ship orders, or ship orders late. Amazon is forgiving of occasional chargebacks for Vendors who demonstrate good operational performance, but they will enforce them in full for Vendors who have ongoing poor performance.
In some cases, Amazon will stop placing POs entirely for Vendor accounts with a history of poor operational performance.
How does TkAMZ improve clients’ operational performance?
For clients who are experiencing continued issues with noncompliances and chargebacks, TkAMZ will draft a comprehensive plan, incorporating the client’s operations and fulfillment assets and our dispute team, to return the client to “good” operational performance as quickly as possible (usually within a month).
We also leverage our contacts on Amazon’s Efficient Receive team to ensure that any ongoing issues are addressed to meet or exceed their standards.
Let’s chat about your Amazon business.
Use the form below to tell us about your business, your brands and your goals on Amazon. We’ll reach out as soon as we can and schedule a 15-minute introductory call to see if TurnKeyAMZ is a good fit for your needs.
About TkAMZ
Amazon is all we do.
TurnKeyAMZ is a full service Amazon Vendor Central operations consultancy. We’re able to manage our clients’ entire Vendor operation with a focus on cost recovery and improving operational performance.