OVL – Order Volume Limit is the maximum number of orders that a seller can receive in a day. When sellers do not perform well, sellers will be applied for OVL.
Benefits:
Help the seller determine the number of orders in accordance with the actual operating capacity.
Reduce order cancellation rate due to too long processing time.
Help the seller to easily arrange resources and time to process orders, improve operational performance as well as customer experience.
*Please click here for the Chinese version of this document.
All cross-border sellers that meet these conditions:
Within 1 week, the seller fails to meet one of the operational metrics as specified in section II. Operational metrics formulas; and
The seller received > 5 orders/week (including completed and cancelled orders); and
The seller has operated on Tiki for > 45 days (since the first order was created).
Metric Name |
Formula |
Aimed Target |
Cancellation Rate (due to sellers’ fault) |
Cancellation Rate = (Total number of orders cancelled due to the seller’s fault/Total number of orders received in the last 1 week) x 100%. |
<= 2% |
On-time Fulfillment Rate |
On-time Fulfillment Rate = (Total number of on-time fulfillment orders in the last 1 week/Total number of orders received in the last 1 week) x 100% |
>= 97% |
In which:
The total number of orders received is the total number of orders recorded during the week including those cancelled by the customer and the seller.
Cancelled orders are orders that the seller failed to complete, calculated to the seller’s fault in the following cases:
Goods are Out of stock
Seller set the wrong price for products
The sellers fail to confirm, pack and hand over orders to shipping partners within committed time which leads to order cancellation.
On-time fulfillment orders are orders that:
Seller confirms the orders within 4 working hours since the order was created; and
Seller transfers goods to shipping partners within 3 working days since the order was created.
Note: Working hours are from 8am to 5pm (GTM+7) every Monday to Friday (excluding holidays).
OVL = The maximum number of orders in 1 day that the seller received in the last 4 weeks x 80%. |
Please see these examples to develop better understanding:
*Week 0: Assume that seller A has operated on Tiki over 45 days and has the following order figures.
The number of orders received in week 0: 1000 orders
The number of canceled orders due to seller’s fault: 20 orders
The number of orders that were not fulfilled on-time: 70 orders
The maximum order received of 1 day (in last 4 weeks): 200 orders
Therefore, operational metrics of seller A in week 0 are calculated as below:
Cancellation Rate (due to the seller’s fault) of the week 0 = (20/1000)x100% = 2% (meet the target <=2%)
On-time fulfillment rate of week 0 = (930/1000)x100%= 93% (not meet the target >=97%)
*Week 1: OVL will be activated on seller A’s store because the on-time fulfillment rate did not meet the required target. OVL for seller A is calculated as below:
Therefore, in week 1, seller can only receive maximum 160 orders per day
Order Volume Limit OVL is adjusted automatically by Tiki and recalculated every week.
No. |
Operation principle |
Description |
1 |
OVL is activated on the seller’s store |
|
2 |
Seller improves and meets the required target of Cancellation Rate (due to seller’s fault) and On-time Fulfillment Rate in 02 consecutive weeks. |
Stop activating OVL in the third week Note: OVL in these 2 weeks is the same and equal to OVL of the first week |
3 |
Seller fails to meet operational metrics in the following weeks |
OVL will be reactivated and applied |
Please login to the Seller Center > Growth Center > Operational Metrics.
From this report, you will be able to view variable values such as Cancellation rate, On-time fulfillment rate, Return rate, Product rating and Customer interaction metrics (including Chat response rate and the Average response time).
Note: Currently, OVL is based solely on Cancellation rate and On-time fulfillment rate.
1. When violating OVL, how long must the seller improve the operational metrics for the OVL to be refreshed again?
After the seller improved and met the required target of both Cancellation rate and On-time fulfillment rate within 2 consecutive weeks.
2. According to the formula for On-time fulfillment rate = Number of orders processed on time / Total number of orders received. Will orders in Cancelled status be counted?
Yes.
3. How to view the details of the orders and products that contributed to different operational metrics (Cancellation rate/On-time processing rate/Return rate)
Next to each metrics, there will be a download option for you to view the detailed report.
4. Apart from the order limit, will the OVL have any effect on my store if it is applied OVL?
You are only limited to the number of orders received.
5. On the OVL interface, there is a Chat response rate, will this rate also affect the OVL applying?
Currently, OVL is based solely on Cancellation rate and On-time fulfillment rate.
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