Amazon's New Handling and Transit Time Settings for US and China Sellers

Amazon has announced changes to handling and transit time settings, with distinct updates for sellers in the US and China.

Set to take effect on October 25, 2024, these changes could significantly impact how you manage your operations in these regions. This article breaks down the key updates for each location and explores the potential implications for your business.

Make sure to read the announcement in detail to fully understand how these changes might affect your shipping strategy and customer satisfaction.

US Update: Key Changes Explained

Amazon’s new transit time settings are designed to refine the delivery process, particularly for orders shipped from China to the continental US. 

Transit Time Settings

• New transit time ranges available on shipping templates, from 2-4 days to 14-20 days.
• The maximum transit time for shipping from outside the US to the continental US reduced from 28 days to 20 days.
• For sellers who previously set their transit time at 14-28 days, this will be automatically updated to 14-20 days.

Handling Time Settings

In addition, Amazon is implementing an Automated Handling Time (AHT) feature for SKUs sold on Amazon.com and shipped from non-US warehouses. Here’s how it works:

• Automated times will be calculated based on historical order processing data.
• If your manual handling time is slower than your actual processing time by two or more days, Amazon will enable AHT, and you won’t be able to disable it.
• Exceptions are available for custom-made, media, and heavy or bulky items, but these SKUs won't benefit from on-time delivery rate (OTDR) protection.

China Update: Key Changes Explained

• New transit time ranges for shipping from China to continental US, from 2-4 days to 14-20 days.
• Maximum transit time reduced from 28 days to 20 days.
• Implementation of automated handling time for SKUs shipped from China, similar to the US update.

Potential Impact on Sellers

• Adjusted delivery windows, particularly affecting sellers shipping from outside the US.
• Reduced flexibility in managing order processing times due to automated handling time settings.
• Possible effects on seller performance metrics.
• Potential need for operational adjustments to meet new time requirements.
• Possible increases in shipping costs to meet shorter transit times.

Seller Reactions

While Amazon’s updates may seem beneficial on the surface—aiming to streamline operations and ensure faster delivery—many sellers feel these changes could do more harm than good.

For instance, the automated handling time feature has sparked frustration among sellers who believe it takes away their control over their business processes. One seller expressed concerns, saying, “If we actually ship faster than our manually configured time, Amazon is going to punish us for shipping faster? And take our padding away?”

The same seller highlighted the potential cost implications, especially for small businesses: “Forcing us to add $1 or more per shipment to ship UPS instead of USPS could cost us an entire person's salary per year.”

This sentiment is echoed by others who fear that being forced to meet tighter shipping deadlines could increase labour costs and strain resources.

Moreover, some sellers have pointed out that these changes could negatively impact their ability to manage unexpected delays or workload fluctuations. As one seller noted, “We pad the handling time with an extra day or two to give ourselves a little bit of breathing room. Now, we’re being forced to keep up with a pace that we didn’t set.”

Amazon’s push to enforce shorter transit times could also be seen as a strategic move to nudge sellers towards using its own logistics network. By making it more difficult for sellers to meet tighter delivery windows with their current logistics providers, Amazon may be encouraging them to opt for its own end-to-end logistics solutions, such as Supply Chain by Amazon.

This switch would give Amazon greater control over sellers’ bulk inventory, effectively centralising more of the ecommerce process under its umbrella. For sellers, this might seem like a convenient option, but it also means higher fees and less autonomy in how they manage their stock and shipping.

8 Recommended Actions for Sellers

To ensure timely delivery of shipments to the US, take the following strategic actions that comply with Amazon’s updated handling and transit time policies.

1. Optimise Shipping Templates and Select Appropriate Transit Times

Carefully review and update your shipping templates to meet the new handling and transit time options provided by Amazon. The updated settings offer a range from 2-4 days to 14-20 days for shipments from China to the continental US (excluding Hawaii, Alaska, and US protectorates). Select the most accurate transit time that reflects your logistical capabilities.

By choosing a transit time that closely matches actual delivery capabilities, you can minimise the risk of late deliveries and improve your OTDR, which is critical for maintaining account health and customer satisfaction.

2. Enable Automated Handling Time (AHT) Where Necessary

Understand how Amazon’s AHT feature works and when it will be enabled automatically. 

AHT is designed to improve the accuracy of delivery promises by automatically adjusting handling times based on historical performance. If you currently set padded handling times to account for unexpected delays, you should carefully review these settings.

If the handling time is set too conservatively (more than two days), Amazon may override it with a shorter, more accurate time, which could lead to faster delivery promises and potentially increased customer satisfaction. 

However, ensure you can meet these tighter timelines consistently to avoid penalties. 

3. Request Manual Handling Time Overrides for Exempted SKUs

For custom-made, media, and heavy or bulky SKUs, consider requesting a manual handling time override if the automated handling time does not suit your operational needs. This override is crucial for ensuring that these special SKUs are handled with the appropriate amount of time and care – for example, heavy and bulky items that require special packaging.

By requesting a manual override, you can maintain control over the handling times for these specific SKUs, ensuring that customers are given realistic delivery expectations. However, note that SKUs with manual overrides won’t benefit from OTDR protection, so you need to be particularly diligent in meeting your promised delivery dates.

4. Leverage Reliable Shipping Services

Partner with dependable shipping carriers that have a proven track record of delivering within the specified transit times.

Evaluate your current shipping partners and consider alternatives if your existing providers are unable to consistently meet the new requirements.

For example, if you frequently experience delays with a particular carrier, it may be time to switch to a more reliable option, especially during peak season. This proactive approach can prevent late deliveries and potential penalties from Amazon.

5. Regularly Monitor and Adjust Handling Time Settings

Regularly review your handling time and transit time settings in the Fulfilment Insight Dashboard and adjust them based on actual performance and operational needs. This includes monitoring any handling time gaps and making necessary changes to ensure that the handling times are realistic and achievable.

This proactive management helps maintain a strong OTDR and prevents Amazon from automatically overriding handling times, which could otherwise lead to rushed operations and increased costs.

6. Prepare for the Impact on Shipping Costs and Resource Allocation

Anticipate how these changes will impact your shipping costs and resource allocation. This may involve budgeting for higher shipping costs if faster transit times or more reliable carriers are required. Additionally, you should evaluate whether your current staffing and resources are sufficient to meet the tighter timelines.

7. Evaluate the Impact on Overall Business Strategy

These updates are not just operational adjustments; they can significantly influence your overall business strategy. Faster, more reliable deliveries can lead to higher customer satisfaction and repeat business, but they also come with potential risks, such as increased costs and operational pressures.

By evaluating the impact of these changes holistically, you can make informed decisions that balance customer expectations with operational realities, ensuring sustainable business growth.

8. Stay Informed About Any Further Policy or Clarifications from Amazon

Amazon frequently updates its policies to improve customer experience and streamline operations. Staying informed allows you to adapt quickly to new requirements and avoid any disruptions to your business. 

Regularly checking for updates and integrating them into business practices ensures that you remain competitive and compliant with Amazon’s expectations, ultimately leading to better performance and customer satisfaction.