For Amazon FBM (Fulfillment by Merchant) sellers, keeping up with the ever-growing demand for fast and efficient deliveries can be a constant challenge. Balancing accurate handling times with customer satisfaction requires meticulous planning and execution. However, Amazon has introduced a groundbreaking solution – Automated Handling Time (AHT). This feature is specifically designed to help FBM sellers overcome this hurdle and unlock new avenues for success. In this article, we will discuss all you need to know about Amazon Automated Handling Time.
A quick view into the article:
- Understanding Total Delivery Time
- FBM vs. FBA
- What is Automated Handling Time (AHT)?
- Benefits of Automated Handling Time
- How to Enable AHT from Seller Central
- Additional Features
- Does AHT Affect Prime Orders and PSOs?
- Considerations
- Final Thoughts
Understanding Total Delivery Time
Before delving into AHT, it’s crucial to understand the different components that contribute to total delivery time:
- Handling time: This refers to the time it takes you, the seller, to process and prepare an order for shipment after receiving it. This includes activities like picking and packing the product, printing shipping labels, and handing it over to the chosen carrier.
- Transit time: This represents the time taken by the chosen carrier (e.g., USPS, FedEx) to deliver the package to the customer’s doorstep. While you have limited control over transit time, managing your handling time effectively allows you to provide accurate estimates and set realistic expectations for your customers.
FBM vs. FBA
For those unfamiliar, Amazon offers two fulfillment options: FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant). FBA takes care of the entire fulfillment process, including storage, picking, packing, shipping, and customer service for a fee. In contrast, FBM sellers handle all aspects of order fulfillment themselves. This requires managing inventory, packaging, and shipping orders, and providing customer service. While FBA offers convenience, FBM allows sellers greater control over their brand and potentially higher profit margins. However, FBM sellers need to be efficient and organized to maintain a smooth operation and a positive customer experience.
What is Automated Handling Time (AHT)?
AHT is a game-changer for FBM sellers. It is an automated feature that automatically sets ASIN-specific handling times based on your historical performance for each product. This means AHT analyzes your past handling times for individual products (identified by their ASIN code) and sets the handling time for future orders accordingly. This ensures that the estimated delivery dates displayed to customers on product listings are accurate and reflect your actual processing speed.
Benefits of Automated Handling Time
AHT offers a multitude of benefits for FBM sellers, including:
- Accurate delivery estimates: By displaying accurate handling times, customers receive realistic expectations about when to expect their orders. This transparency leads to increased customer satisfaction, reduces confusion and frustration, and fosters trust in your brand. Satisfied customers are more likely to return and recommend your products, which can boost your sales in the long run.
- Eligibility for Seller Fulfilled Prime: Maintaining a good track record on Amazon, including accurate handling times, is crucial for qualifying for Seller Fulfilled Prime (SFP). SFP allows you to offer Prime shipping benefits (typically faster delivery options) to your customers while fulfilling the orders yourself. This can significantly increase your product’s visibility and appeal to Prime members, unlocking a whole new customer base and potentially leading to increased sales.
- Improved performance metrics: Maintaining accurate handling times is essential for maintaining a good Seller Rating and avoiding penalties on Amazon. AHT helps you consistently meet your handling time commitments, improving your overall performance metrics and positioning you favorably in the Amazon marketplace.
- Potential cost savings: Compared to FBA, FBM can offer sellers higher profit margins. By streamlining your operations and improving efficiency with AHT, you can potentially reduce fulfillment costs and increase your overall profitability.
How to Enable AHT from Seller Central
Step 1: Log in to your Amazon Seller Central account.
Step 2: Navigate to the Settings and click on Shipping Settings.
Step 3: Under the Shipping Settings section, click on General Shipping Settings.
Step 4: Scroll down and find the Handling Time section.
Step 5: Look for Automated handling time and click on Edit.
Step 6: A toggle switch will appear. Simply turn on the toggle and click Save.
Once enabled, AHT will automatically analyze your historical performance and set handling times for individual products.
Additional Features
Along with AHT, Amazon has also introduced another helpful feature: Order Handling Capacity. This allows you to set a daily limit on the number of orders you can reliably process and ship. Once this limit is reached, any orders with Same Day, 1 Day, or 2 Day Handling Time will be automatically extended to the next available shipping day.
This feature is designed to protect you from unexpected order surges that could overwhelm your resources and potentially lead to delays in fulfilling orders.
Does AHT Affect Prime Orders and PSOs?
It’s important to note that AHT does not apply to Prime orders or orders placed with Premium Shipping Options (PSOs). Prime orders already have pre-defined handling times based on the Prime fulfillment program. Similarly, PSOs are expedited shipping options chosen by the customer at checkout, and their handling times are determined by the chosen service (e.g., expedited shipping through UPS or FedEx). Therefore, AHT focuses solely on adjusting handling times for standard shipping options on non-Prime and non-PSO orders.
Bonus Tip: For the first 90 days after enabling AHT, your late shipment rate (LSR) will not be impacted even if AHT sets shorter handling times that you occasionally fall short of. This grace period allows you to experiment with AHT and observe how it adjusts your handling times based on your historical performance. You can use this time to make adjustments to your fulfillment process if needed to ensure you can consistently meet the handling times set by AHT.
Considerations
While AHT offers a valuable tool for FBM sellers, it’s crucial to remember that it relies on your historical performance data. Therefore, it’s essential to:
- Maintain consistent handling times: To ensure AHT accurately reflects your actual processing speed, strive to maintain consistent handling times as much as possible. This means fulfilling orders within the timeframe you have set, whether manually or through AHT.
- Monitor your AHT settings: Regularly review your AHT settings and ensure they are aligned with your current fulfillment capabilities. If your operations have changed or you experience unexpected delays, it’s vital to adjust your handling times accordingly to maintain accuracy.
- Communicate clearly with customers: In case of unforeseen circumstances that might lead to delays, communicate proactively with your customers. This transparency helps manage their expectations and minimize potential frustration.
Final Thoughts
AHT represents a significant step forward for FBM sellers, empowering them to optimize their handling times, enhance customer experience, and potentially boost sales. By understanding its functionalities, utilizing its benefits, and implementing best practices, you can leverage AHT to gain a competitive edge and thrive in the dynamic Amazon marketplace.
If you have any queries, please let us know through the comment box or email us at info@ecomclips.com. We understand that every situation is different, so we offer a personalized approach to our service.
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