Understanding Seller Tiers and Inbound Performance
To ensure a smooth and reliable inbound experience for all partners, noon uses a performance-based tiering system. This system classifies sellers into tiers based on how accurately they deliver the inventory that is scheduled. Your performance tier directly impacts your inbound capacity limits.
What are Seller Tiers?
To ensure everyone has a fair and efficient experience at our warehouses, we classify sellers into tiers based on their Inbound Performance Score (IPS). This score measures how closely your actual deliveries match the ASNs you originally scheduled. Based on your Inbound Performance Score (IPS) the Seller Performance Tiers are classified into 4 tiers as mentioned in the table below.
How does noon calculate your Inbound Performance Score?
noon measures your performance using three interconnected metrics as mentioned below:
- IQV (Inbound Quantity Variance): The difference between the number of units you scheduled and the units actually received at the warehouse.
- IUE (Inbound Utilization Efficiency): A percentage showing how efficiently you used your scheduled capacity over your last 5 activities.
- IPS (Inbound Performance Score): Your overall score that combines recent and long-term (90-day) reliability.
Note: These metrics are calculated separately for each country where you operate and only include ASNs within three days of their scheduled arrival date.How is each metric calculated?
Inbound Quality Variance (IQV)
The formula measures the absolute difference between what you promised to send and what was actually stored in the warehouse:
IQV = |Scheduled Quantity - Putaway Quantity|
We will understand this calculation with some examples
Example 1: A Partially Delivered ASN
Imagine you create an ASN (Advanced Shipping Note) for 100 units, but during the physical check at the warehouse, we only received 95 units.
Result: Your IQV is 5. This means 5 units were missing from your scheduled shipment.
Example 2: A Delayed and Expired ASN
If you schedule a shipment for 100 units, but fail to deliver it to the warehouse within the required timeframe, the ASN status moves from Delayed to Expired.
Result: Your IQV is 100. This counts as a 100% variance because the entire scheduled capacity was wasted.
Important: Keeping a low IQV score will improve your overall Inbound Performance Score.
Inbound Utilization Efficiency (IUE)
For the Inbound Utilization Efficiency (IUE), the system looks at your 5 most recent scheduling activities. It compares the total number of missing units (IQV) against the total capacity you were expected to fill.
IUE= 1- (Sum of IQV for last 5 ASNs / Sum of Max Quantities for the last 5 ASNs)
We will understand this calculation with an example
Example Calculation (For Last 5 Shipments)
Imagine your last 5 shipments looked like this:
If we input this data into the IUE formula, we will get the following calculation
= 1- (20/590)
= 1- (0.03389)
= 0.9661 or 96.61%
This indicates your IUE is roughly 97%. Since you missed delivering 20 units due to multiple reasons, your IUE score will be lower than a seller who delivers exactly as promised.
Example Calculation (For Past 90 days)
Imagine your last 3 months of inbound activities looked like this:
Note: Only the ASN which are in the 90-day window in the table above will be considered in the calculation below.
If we input this data into the IUE formula, we will get the following calculation
= 1- (146/690)
= 1- (0.2115)
= 0.7885 or 78.85%
This indicates your IUE for the past 3 months is roughly 78%.
Important: Maintaining a higher (IUE) directly improves your Inbound Performance Score, helping you qualify for higher performance tiers.
Inbound Performance Score (IPS)
This metric determines your seller tier. While your most recent 5 activities carry the most weight in calculating your tier, your performance over the past 3 months remains a key factor in your overall score.
IPS= (0.7* IUE of last 5 activities)+(0.3* IUE of the last 90 day)
Consistent excellence across both recent and past shipments is essential to maintaining a high tier.
Lets understand this with a simple example.
Example: Consider a scenario where a seller has performed reasonably well recently. Despite earlier fluctuations within the 3-month window, their high-performing recent activities will drive their IPS upward, reflecting their current operational success.
- Recent Performance (Last 5 Activities): The seller was 97% accurate in their last 5 shipments. IUE = 96.61%.
- Historical Performance (Last 90 Days): Over the last 3 months, they had several expired or incomplete shipments. IUE = 78.85%.
Now, if we input this data into the formula for IPS, it will give us the following calculation:
= (0.7*96.61) + (0.3*78.85)
= (67.627) + (23.655)
= 91.282
With an IPS of 91.2, this seller successfully qualifies for the Gold Tier. By maintaining high standards in their last 5 shipments, the seller significantly offset their older history.
How can you check your Performance on Seller Lab?
You can track your performance and find your current Inbound Performance Score directly on the Seller Lab by simply following these steps.
- Log in to the Seller Lab and click on the Navigation menu. Click on Fulfilled by noon and then click on ASN & Storage.
- Under Manage ASNs & Storage, you will notice a section showing your Inbound Performance Tier. You can click on Learn More to see the details.
- A pop-up appears on the screen which will show your performance tier and the performance in the past 90 days. It also suggests some important tips to improve your performance. Click on the hyperlink below to know more about the score and tier.
- The next screen indicates how the Inbound Performance Score is calculated.
- When you further scroll down, you can view the different tiers and the IPS score you need to achieve to reach the tier.
- If you further scroll down, you will notice some important do's and don't's to improve your score and ultimately improve your performance.
How to download the Schedule Delivery Accuracy Report?
This report enables you to analyze your on-time ASN delivery performance and identify the specific reasons behind any delays or cancellations. By using these insights, you can make informed decisions to streamline your ASN delivery process.
You can download this report by following these simple steps.
- Log in to the Seller Lab, and then in the Navigation menu, select Fulfilled by noon, then click Reports.
- In the next step, click on Generate Report button.
- In the pop-up that appears, select the Report name as Inbound and the Inbound Report as Schedule Delivery Accuracy. Then select the date range for which you want to extract the information.
- Click on Generate report.
- Once the file is processed and ready, you will find an option to download the file. Click on it to export the file as an Excel sheet.
- This report tracks the accuracy of your inbound shipments by comparing scheduled dates and quantities against actual deliveries to identify delays, cancellations, and utilization efficiency.
How to check your IPS on Seller Lab through reports?
You can also check the Inbound Performance Score for a selected duration and download it as an Excel file for simple and easy understanding.
You can download this report by following these simple steps.
- Log in to the Seller Lab, and then in the Navigation menu, select Fulfilled by noon, then click Reports.
- In the next step, click on Generate Report button.
- In the pop-up that appears, select the Report name as Inbound and the Inbound Report as Inbound Performance Report. Then click on Generate report.
- Once the file is processed and ready, you will find an option to download the file. Click on it to export the file as an Excel sheet.
- This report provides a granular view of your inbound reliability by tracking every ASN at the partner and country level. It serves as the official record used to calculate your tier by analysing several key data points:
- Shipment Status: It identifies whether an ASN was successfully "putaway_complete" or if it was "cancelled", "expired" or “delayed”.
- Metric Accountability: The "Is Accounted" and "Within 90 Days" columns show exactly which shipments are currently impacting your recent and historical scores.
- Utilisation Accuracy: By comparing your Scheduled Quantity against the Putaway Quantity, the report calculates the specific IQV (variance) and IUE (efficiency) for every individual activity.
- Tier Determination: This data is ultimately combined to generate your Inbound Performance Score (IPS) and your final Tier (Gold, Silver, or Bronze).
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