Ship on Time (SOT) Policy

1.7K Published on July 20, 2023

SHIP-ON-TIME POLICY
1. Introduction
1.1 Ship-On-Time policy
2.1 Ship-On-Time
2.2 Ship-On-Time Measurement
2.3 Standard SLA for Ship-On-Time
2.4 SLA 2 Working Days

SELLER INITATED EXTENSION
2.5 - 2.10 Extension SLA Features
3. Extension SLA Policy
4. Enforcement and Penalty
5. Policy Compliance




Ship on Time

1. Introduction
1.1 Ship-On-Time policy (the “Policy”) ensures a seller ships orders within the SOT SLA, and maintains a high level of customer satisfaction with respect to fulfilment standards.

2. Ship-On-Time
2.1 Ship-On-Time (“SOT”) is a measurement of a seller’s ability to ship orders within the agreed service level timeline (“SLA”). SOT performance is displayed to customers and may influence a buyer’s purchasing decision.

2.2 Ship-on-Time Measurement

Ship-On-Time measures the percentage of ordered items fulfilled within the agreed SLA over the total items that are considered valid or fulfillable (i.e. not cancelled by buyers, or cancelled by system).

The metric is measured over a period of 28 days and is refreshed daily. The 28-day covered are orders that came in from 8 days ago to orders that came in 35 days ago (i.e. Day -8 to Day -35 Orders). The one week gap is intentional as orders within the past 7 days have typically not finished their fulfillment journey yet, and therefor not yet counted within the metric shown.

Orders fulfilled within the agreed SLA means that the orders were handed over to our logistic partners or Drop-Off Point Stations within the appropriate lead time. This means the orders have successfully reached the Transit-to-Ship Status.


2.3 Standard SLAs for Ship on Time

Standard SLAs for Ship On Time

  • LazMall Sellers

Within 2 working days for LazMall standard orders

  • Local Marketplace Sellers

Within 2 working days

  • Crossborder Sellers

Within 5 working days

2. 4 Working days are Monday to Saturday and excludes public holidays during non-Mega Campaign periods. During Mega Campaigns, working days are Monday to Saturday and includes any weekends included in the campaign period. These SLAs are applied to general sellers unless your request for extension of SLAs is approved by Lazada.

You may refer to the following scenarios to better understand our Ship on Time Policy.

For more information on the Mega Campaign Fulfillment policy, you may click here.



Seller Initiated SLA Extension

FEATURES:

2.5. A seller may initiate an SLA extension for up to 3 calendar days (“Extension SLA”).


2.6. SLA can only be extended once per order, and only before the parcels are packed to be ready to handover to the logistics partner (Ready-to-Ship status).

2.7.A seller may initiate an SLA extension for a limit of 10% of total orders of the previous week or 1 order, whichever is larger.

2.8.SLA extension is only confirmed when the buyer agrees with the extension within 1 calendar day from the time the SLA extension is initiated by the seller. Do note that as long as the extension request is initiated by the seller, the quota will be occupied even if buyers do not respond or reject
.

2.9. SLA extension is not applicable to Pre Order and Instant Delivery listings.


2.10 Sellers are able to initiate SLA extension at the Order Management page on ASC.

3.Policy

3.1. A seller shall ensure that all orders are shipped within the SLA or Extension SLA (where applicable).

3.2. An order will be automatically cancelled if the order is not shipped within the SLA or Extension SLA (where applicable) (“Breach Cancellation”). For orders with SLA extended, breach cancellation happens on the next business day after the extended SLA.

3.3. When the SLA is extended, note that the seller fulfilment metrics such as SOT, average lead time, etc, will be based on the extended SLA.

4.Enforcement and Penalty

4.1. The following enforcement actions may be taken against a seller with poor SOT performance (non-exhaustive):

i.Lower the ranking of a buyer’s search results of your listings;

ii.Remove your eligibility to participate in Flash Sale;

iii.Remove your eligibility to participate in Campaigns; and

iv.Remove your eligibility to be classified as a LazMall seller in accordance with the LazMall Assessment Cycle.

4.2. Sellers who commit a Policy violation of the Extension SLA will not be able to extend its SLA for 1 month for first-time offenders, 3 months for second-time offenders, and 6 months for third-time offenders or more. The evaluation period will be on a monthly basis.

Metric

Violation

Number of extended orders cancelled; and

Greater than or equal to 5

Seller Fault Cancellation Rate for the extended orders

Greater than or equal to 5%


5.Policy Compliance

5.1.A seller is encouraged to keep their delivery time short by avoiding processing back to back orders and keeping items in stocks. This will ensure that parcels are handover to the logistics partner in a timely and accurate manner.

Help us improve our policies. Leave a comment here.

Is this article helpful ?
Lazada University Logo
ADA is available at 24 hours. Live Chat Services are available from Monday - Saturday: 09:00AM - 06:00PM.