Navigating Amazon’s New ASN Version 2: What Vendors Need to Know
Last week, Christopher Khoo of KhooCommerce joined Paul Sonneveld of MerchantSpring on a webinar to discuss Amazon’s new ASN Version 2, which went live on 1 July in the US/Canada and 1 June in the EU/UK. You can watch the webinar or read the transcript here.
What’s New with ASN Version 2?
Amazon has recently rolled out a significant update for Vendors globally, known as ASN (Advanced Shipment Notification) Version 2. This new requirement affects vendors across North America, Europe, the UK, Australia, and New Zealand. The key change in this update is the introduction of pallet label information, which aims to streamline the shipping and receiving process but also adds a layer of complexity for Vendors.
Let's dive into the specifics and implications of this change.
Amazon now requires detailed pallet label information alongside the traditional item tracking. Previously, Vendors only needed to track the order, item, quantity, and box number. With ASN Version 2, they must also indicate which box is on which pallet. For example:
- Box 1-25 is on pallet 1
- Box 26-50 is on pallet 2
- Boxes 51 to 200 are on pallet 3, and so on.
This new requirement means vendors must label each pallet accurately and capture this information during the packing process. This presents a logistical challenge, especially for warehouses that do not currently track items at the pallet level.
Other changes include requiring tracking information at the carton level for small parcel shipments. This is a step up in detail requirement for UK/EU shipments, where previously it was only possible to attach one carton tracking ref per shipment. While this will mean an increase in traceability, it does mean that vendors will be required to capture and upload the tracking refs for each carton when making a small parcel shipment.
Timeline for Compliance
While ASN Version 2 is technically live, Amazon has given Vendors a grace period for compliance. The official full deployment is aimed for mid-August, providing Vendors about 12 weeks from the launch date to adapt. During this period, Vendors can opt into ASN Version 2 through the Vendor Central interface. As of now, there are no immediate chargebacks for non-compliance, but this is expected to change soon. For now it is
Anticipated Impact and Chargebacks
Amazon is likely to introduce new chargebacks for non-compliance with pallet labeling, potentially ranging from three to five pounds per pallet. However, the more significant financial impact for Vendors might come from shortages due to inaccurate or missing pallet information. Even a few misplaced boxes could lead to substantial costs.
Strategies for Vendors
To comply with ASN Version 2, Vendors need to reassess and potentially overhaul their logistics processes. Here are some key steps to consider:
- Internal Coordination: Ensure a joined-up conversation between finance, logistics, and warehouse teams. The logistical changes required may impact multiple departments, and a collaborative approach is essential.
- Process Adaptation: Assess current tracking systems and identify gaps. Implement or upgrade systems to track which items go on which pallets accurately.
- Third-Party Logistics (3PL): For Vendors using 3PL providers, it’s crucial to communicate the new requirements and ensure their processes align with Amazon’s new standards.
Why is Amazon Making This Change?
Amazon’s push for ASN Version 2 aims to standardize and improve their supply chain operations. By harmonizing pallet labeling across regions, they can enhance the efficiency of inbound shipments, reducing delays and improving overall logistics management. This change also supports their palletized shipment program and consolidation models, ultimately benefiting both Amazon and Vendors through smoother operations.
Christopher Khoo, Sales Director of KhooCommerce, said:
"The introduction of ASN Version 2 marks a significant shift in how Vendors will manage their shipments. While the changes bring about new challenges, particularly in logistics and tracking, they also promise a more streamlined and efficient supply chain. Vendors should take proactive steps to adapt to these changes, ensuring compliance to avoid potential chargebacks and shortages. As the Vendor purchase order management solution, KhooCommerce is here to help Vendors turn this challenge into an opportunity to enhance their operational efficiency and relationship with Amazon.”