OVL - Order volume limit

OVL – Order Volume Limit is the maximum number of orders that a seller can receive in a dayWhen 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:

  • Order Volume Limit (OVL) = 200 x 80%  = 160 orders/day

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

  • The seller only receives a maximum number of orders per day according to the formula for calculating the OVL, including orders canceled by the customer or the seller.
  • If seller has reached the maximum number of orders per day, all SKUs are blocked, then unblocked at 2:00 AM (GTM +7) everyday

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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