TikTok Shop Updates Late Dispatch Rate (LDR) Policy with Stricter Standards
TikTok Shop has tightened its logistics assessment criteria. From June 15, the calculation of the Late Dispatch Rate (LDR) will include not only shipped orders that exceed time limits but also overdue orders that have not been shipped. This will directly affect sellers' shop health scores, subsequently limiting ad placements and traffic acquisition.
What are the key facts?
- 1TikTok Shop updated the Late Dispatch Rate (LDR) calculation formula on June 15
- 2New formula includes 'over SLA but not shipped' orders
- 3LDR metrics directly affect shop health scores and ad placement permissions
What happened?
TikTok Shop has updated its LDR policy, with the new calculation formula being: (Late dispatch orders + orders not shipped beyond SLA) / total orders during the assessment period. This policy aims to enhance platform fulfillment transparency, and sellers not meeting LDR benchmarks will face penalties such as traffic restrictions, extended settlement cycles, and restrictions on ad placements.
What does this mean for cross-border sellers?
Sellers must immediately optimize their warehousing and logistics processes to ensure orders are shipped within SLA deadlines. It is advisable for sellers to regularly monitor their shop health scores to avoid the risk of losing advertising privileges due to logistics issues.