Amazon has announced the beginning of a new cancellation policy for purchase orders. This change went into effect on March 24th. It allows for Amazon to automatically cancel direct import and other orders without the vendor’s approval if the vendor doesn’t complete delivery within the stated window.
The details of this new policy differ for direct import orders and other orders. For direct import orders, if 45 days pass after the purchase order’s ship/delivery window, the accepted line items will auto-cancel unless Amazon receives an ASN.
For regular replenishment, staged, or manually placed orders, Amazon allows for 7 days after the expected delivery date or 30 days after the end of the ship/delivery window before auto-canceling, depending on which comes first.
If you’re a vendor, it’s important to be aware of Amazon’s new policy and the increased level of risk that comes with it. Vendors must get their information to Amazon and errors back to their business owners in a shrinking time frame. With EDI that gives you real-time visibility to monitor and react to what happens in the order fulfillment process, you can more easily meet your goals and avoid the costs of cancelled orders.