1. What is an Order Volume Limit (OVL)?

An Order Volume Limit (OVL) is a limit on the total number of orders a shop can receive each day. Once it is reached, a shop will not be able to receive additional orders for the rest of the day. The shop must wait until the next day when the OVL is reset to receive orders. OVLs are typically applied to shops that have high Seller-fault Cancellation Rates (SFCR) or Late Dispatch Rates (LDR). The OVL's goal is to help the shops avoid these situations by limiting the number of orders they receive every day.

• LDR and SFCR are calculated as follows:
  • The Late Dispatch Rate is the percentage of all orders (over a specified period) that take more than 2 working days to be updated to "Shipped" status after the initial order date.
  • The Seller-fault Cancellation Rate is the percentage of all orders (over a specified period) that are cancelled by the seller or due to the fault of the seller.

For more information on OVLs and their general application, click here.

2. Order Volume Limit during TikTok Shop Campaign Periods

TikTok Shop campaign periods (e.g. 12.12, 4.4) typically see a spike in customer order volumes. TikTok Shop will apply OVLs to assist sellers who previously found it difficult to fulfill orders during these periods. Below are the two situations that will result in TikTok Shop applying OVLs to shops during a campaign period.

2.1 Situation 1: High SFCR and LDR during previous campaign period

TikTok Shop will apply an OVL to a shop if it had a high Seller-fault Cancellation Rate and Late Dispatch Rate during the previous campaign period. The criteria are as follows:

• SFCR was at least 10%; or
• LDR was at least 10% during the previous campaign period.

2.2 Situation 2: High SFCR and LDR over 30 calendar days

TikTok Shop will apply an OVL if a shop had high Seller-fault Cancellation Rate and Late Dispatch Rate over the last 30 calendar days. The criteria are as follows:

• SFCR was at least 10%; or
• LDR was at least 10%.

Frequently Asked Questions (FAQs)

• How long will this OVL be imposed?
  • OVLs will be applied 5 days before the start of a campaign and will end 1 day after the campaign ends.
    • For example, the OVL for the upcoming 4.4 campaign will be applied to shops on 30 March 2023 and end on 4 April 2023.
• What can shops do to avoid an OVL?
  • To prevent late dispatched orders, sellers should pack orders promptly and hand them over to their logistics provider within 2 working days of the initial order date.
  • To prevent frequent order cancellations, sellers should manage their order handling capacity and regularly update their product inventory with a high level of accuracy.
• Click here for additional OVL-related FAQs.