Late Fulfillment Rate Policy

Late Fulfillment Rate (LFR) measures the sellers' ability to fulfill orders within the target processing time set by Lazada. This measures all verified orders (excluding buyer cancelled orders) and includes Fulfilled by Lazada (FBL) orders.

Orders are considered fulfilled once the seller's specific portion of the fulfillment process is accomplished. Orders for Pickup sellers are marked as fulfilled once they are marked as Ready-to-Ship (RTS). Drop-off Point sellers fulfill their orders once they have already handed off the parcels.

The Late Fulfillment Rate should serve as an additional metric that sellers can use to gauge their performance and provide sellers a tangible target to try and improve towards. 

Standard SLAs for Late Fulfillment Rate

Working days are Monday to Saturday and excludes public holidays during non-Mega Campaign periods. During Mega Campaigns, working days are Monday to Saturdays 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 the policy for Pick-Up Sellers

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

Late Fulfillment Rate Measurement

Ex. for Pickup Sellers

Seller A is a Pickup seller who received 20 orders on Monday, but there were 5 orders that were not set to arrange shipment within 1 working day.

Ex 1. Computation for Late Fulfillment Rate for Pickup Sellers

Ex. for Drop-off Point Sellers

Seller B is a Drop-off Point seller who received 40 orders on Tuesday, but there were 20 orders that were not handed over to the drop-off center within 2 working days.

Ex 2. Computation for Late Fulfillment Rate for Drop-off Point Sellers

What are the Consequences for a high Late Fulfillment Rate (LFR)?

Sellers who have a high Late Fulfillment Rate may experience Order Volume Limits being placed onto their stores. The Late Fulfillment Threshold for Order Volume Limit is at 20%. Should a seller's Late Fulfillment Rate reach 20% or higher, then their Order Volume Limit will be set at 70% of their Daily Average Orders.

You may read more about our Order Volume Limit policy here.

AVERAGE PROCESSING TIME

Average Processing Time measures the average number of hours it takes for sellers to accomplish their end of the order fulfillment process. Pickup sellers are measured by how long it takes for them to mark their orders as Ready-to-Ship (RTS), while Drop-off Point sellers are measured by the number of hours before they have handed over the items to the drop-off points.

This new metric should more accurately represent the seller's specific portion of the fulfillment process, and will not take into account the steps that the seller has no control over (ie. The arrival time of the pickup, how long it takes for couriers to deliver the item to the buyer, etc.). Please see below how we calculate for the Average Processing Time.

Average Processing Time Measurement

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.


Changes to the Order Management Page

Orders will now show a countdown in your Order Management Page that shows the duration left to fulfill your orders to be "on time". Please note that the timer now indicates what action is required to mark your order as fulfilled.


Pickup Orders:

Drop-Off Orders

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