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Delivery Defect Rates: Understanding Their Importance for Walmart Sellers

By:Akshita | 13 February, 2023 |Ecommerce, Marketplaces, Walmart,

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Ecommerce Marketplaces Walmart

Delivery Defect Rates: Understanding Their Importance for Walmart Sellers

There is no doubt that marketplaces have made it easier than ever to reach out to millions of customers. Walmart.com is a distribution network for growing eCommerce businesses, with over 110 million visitors per month. That is why selling on Walmart is critical for all sellers.

But it is also important to note that the application process isn’t over once you’ve finished it and created your Marketplace seller account. We hope you did, otherwise, you can connect with our Optiwise.ai Walmart experts today and get going.

Walmart assesses and reviews the effectiveness of its platform’s vendors. Adherence to the Seller performance requirements on Walmart is necessary for successful selling at Walmart.

Understanding, maintaining, and optimizing your seller analytics will help you develop significantly on Walmart Marketplace and differentiate yourself from the competition.

One of the crucial performance metrics for Walmart is the Order Defect Rate. Order Defect Rate and Walmart Seller Performance have an inverse relationship. The Order Defect Rate may rise if the number of Delivery Defects, Customer Complaints, Cancellation Defects, or Return Defects on Walmart exceeds a predetermined threshold set by Walmart. And lastly, the horror of it all, suspension of your Walmart seller account! 

In this blog, we will talk about one of the most crucial performance metrics of Order Defect Rate for Walmart – the Delivery Defect Rate(DDR), what causes them, and how to avoid them.

What is a Delivery Defect Rate?

The DDR is a seller-accountable cancellation rate that should be less than or equal to 2% over the past 90 days. It’s calculated as the percentage of orders canceled due to the seller’s mistake after receiving the order.

Based on your preferences and the chosen shipping method, Walmart determines the Expected Delivery Date (EDD) for each item. It’s vital to uphold this promise because the EDD is made public on the listing page and in the email that confirms your transaction.

The orders you send after the anticipated delivery date are what cause the delivery faults.

As a result, in order to maintain a high level of on-time delivery, sellers must provide a precise projected date of delivery based on calculations incorporating time, distance, type of shipment, a season of sales, etc.

Walmart holds you responsible for this measure, despite the fact that some issues could be brought on by issues with your shipping company. To fulfill this crucial criteria, you should thus be certain that you are aware of how EDD is calculated, keep an eye on your settings and lagtimes, and evaluate the performance of your shipping suppliers.

selling-on-walmart
Image source : Walmart Seller Center

Why is it important?

As a Walmart seller, it’s crucial to keep an eye on your delivery defect rate (DDR). This metric, which measures the percentage of orders canceled due to the seller’s mistake, can impact your ability to become a pro seller or even result in account suspension.

If your Walmart account is at risk too, reach out to our Walmart experts today.

What Factors Influence Delivery Defect Rates?

here are three main reasons for delivery defect rates: auto cancellation by Walmart, unavailable inventory, and pricing errors.

Auto Cancellation by Walmart: If an order exceeds the estimated shipping date (ESD) or if there’s unavailable inventory, it may be at risk of being auto-canceled by Walmart. To avoid this, sellers must update the order to a shipped status with a valid tracking number within the auto-cancellation window (ESD + 6 days). If valid tracking isn’t provided and the order isn’t updated to shipped status, Walmart will cancel the order and refund the customer.

Unavailable Inventory: Sellers must keep their in-hand inventory updated accurately to avoid having to cancel orders and increase their delivery defect rate.

Pricing Errors: Typing errors in pricing can lead to forceful cancellations and contribute to the DDR.

What Happens When an Order Is Canceled?

Once an order has been canceled, it cannot be updated or edited and is considered closed.

Make absolutely sure you meet your obligation by the expected shipment date. The only thing you can do is set your expected shipping time properly. Choose the package and delivery plan after great thought and study. Be prepared to adapt to trends, such as which products sell better in various states.

Second, by keeping a close check on how much and which products you are selling, as well as the product lifespan, you can keep track of all the products and prevent them from running out of stock, as well as the projected delivery dates on all your orders.

Get third-party management and growth assistance from AI-powered solutions like Optiwise.ai, which has helped thousands of sellers improve their seller performance on Walmart to date.

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