Updating Seller Fulfillment Metrics from Calendar Day to Working Day

1. What are the upcoming changes to our TikTok Shop fulfilment metrics? (Effective from 19 December 2022)

At TikTok Shop, we always seek to improve our sellers' platform experience. As such, we are introducing a change to how we calculate our seller fulfilment metrics. From 19 December 2022, TikTok Shop will start calculating our seller fulfillment Service Level Agreement (SLA) based on working days instead of calendar days. This will affect how we calculate metrics such as Seller-fault Cancellation Rate and Late Dispatch Rate.This change enhances the seller experience by:

• Making it simpler for sellers to maintain their shop health metrics. With good performance, sellers can enjoy additional benefits on our platform, such as campaign enrollment, voucher subsidies, and increased traffic.
• Giving more time for sellers to fulfil orders received during weekends or public holidays (non-working days)
• Providing more insight into how we calculate seller-fault cancellation and late dispatch rates.

2. What counts as a "working day"?

• TikTok Shop defines a "working day" as any day from Monday to Friday.
• Saturday, Sunday and national public holidays are considered non-working days.
• In Kedah, Kelantan and Terangganu, a "working day" refers to any day from Sunday to Thursday, inclusive of State Holidays. Friday, Saturday and National Holidays are considered non-working days.
• Note: Seller's fulfillment performance and auto-cancellation SLAs will be evaluated based on working days.

2.1 How will TikTok Shop calculate the Late Dispatch Rate (LDR)?

The Late Dispatch Rate is the percentage of late shipped orders (orders that take longer than 1 working day to ship out) out of the total number of orders shipped within the last seven (7) calendar days.

2.2 How will TikTok Shop calculate the Seller-fault Cancellation Rate (SFCR)?

The Seller-fault Cancellation Rate is the percentage of all orders (over a period of 7 calendar days) that are cancelled by the seller or due to the fault of the seller.

• The SFCR includes all:
  • Seller-initiated cancellations due to seller's fault (e.g. no stock, wrong pricing)
  • Platform order auto-cancellations due to a seller's failure prepare/hand over the parcel to logistics providers within the platform's auto-cancellation SLA (based on working days). See section 2.1 above.
• A seller's SFCR will be updated every Monday on the Seller Center.

2.3 How will TikTok Shop calculate Auto-cancellation?

Under the new working day calculation, platform auto-cancellation for a standard order will occur if:

• The order is not ready for shipment by 23:59H, 2 working days from when the order was placed (i.e. the order status is not set to "To Ship - Awaiting Collection")

OR

• The order is ready for shipment but has not been collected by the logistics provider within 23:59H, 4 working days from the date the order was placed. (i.e. the status of the package is not at "Shipped")

(Effective from 2nd September 2024 onwards)

• The order is not ready for shipment by 23:59H, 1 working days from when the order was placed (i.e. the order status is not set to "To Ship - Awaiting Collection").

OR

• The order is ready for shipment but has not been collected by the logistics provider by 23:59H, 3 working days from the date the order was placed.

2.4 How does it work?

Example 1 (fulfillment on Weekdays):

Example 2 (fulfillment on Weekends/Public Holidays):

Example 3 (order received on non-working day):

2.5 Days excluded from fulfillment calculation:

3. What will the new fulfillment metrics look like in the Seller Center?

From 5 December 2022, sellers can view the "Working Day" metric under the "Manage Orders" tab of the Seller Center.

• After clicking "View Working Day LDR" or "View Working Day SFCR", sellers will be redirected to a fulfillment performance page that is calculated based on working days SLA.
• Sellers will be able to check the number of orders that contribute to their LDR and SFCR from this page as well.

Note: from 19 December 2022, the "Shop Health" tab of the seller center will only display fulfillment metrics based on the new working day fulfilment calculation.