What is Non-Delivery Compensation (NDC)?
Non-Delivery Compensation (NDC) is an insurance service that applies to Joom Logistics orders.
Joom Logistics is available for British, German, French, and Turkish merchants. Please refer to this article to learn more.
- If an order was shipped by JL and refunded by Joom due to logistic issues, the product cost refunded to the customer will be fully or partially compensated to a merchant by Joom.
- If such orders have the confirmed delivery status but are refunded by Joom due to logistics issues, Joom will compensate the merchant as well.
Logistics issues include:
- Not delivered – the parcel was not delivered to the customer according to the tracking information.
- Damaged – the parcel got damaged during shipping.
- Missing proof of delivery – the parcel was delivered according to the tracking information, but the customer says that he didn't get it and there is no proof of delivery.
- Delivered to the wrong address – the parcel was delivered to the wrong address or the wrong person.
- Turned back by the post office – the client forgot about the parcel in the post office and didn't receive it or refused to receive it, so the parcel was sent back to the merchant.
- Consolidation error – the consolidated parcel is missing some products or includes the products ordered by other customers.
How is the Non-Delivery Compensation Amount calculated?
Non-Delivery Compensation Amount is the amount that will be compensated in case of a refund due to the logistic issue.
JL compensates the Merchant Revenue amount to the merchant.
Non-Delivery Compensation Amount = Merchant Revenue
Merchant Revenue is the amount Joom owes to the merchant for an order. It's calculated as:
Merchant Revenue = Original Amount – Competitive Price Reduction Amount – Discounts – Joom Take Rate
If a user received a partial refund, then the NDC will be calculated in proportion to the percentage of the refund.
How is the Non-Delivery Compensation Amount shown in the Invoices?
The Non-Delivery Compensation amount is deducted from the refund amount for the order and is not reflected separately in the invoice.
- If an order is covered by NDC the compensation amount will be shown on the Order Details page.
- If you want to check the compensation amount of a refunded order, you can find the Non-Delivery Compensation Amount on the Order Details page.