|We have an important update about Joom Logistics Non-Delivery Compensation Amounts Recalculation. Please refer to this part to learn more.|
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, Spanish, 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.
Which Products Are Usually Shipped Via Registered Mail?
Products with the Original Amount (with the applied discount) above $5 are usually shipped via RM. However, some exceptions may apply:
- products with the Original Amount under $5 can be shipped via RM;
- products with the Original Amount above $5 can be shipped via NRM. In this case, they will not be covered by NDC.
Shipping conditions depend on a destination country, the product itself and other factors.
(Original Amount is the base amount for calculating the merchant payment. In the case of online orders which use Joom Logistics for delivery: Original Amount = Price (per Item) × Quantity)
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 proportionally to the percentage of the refund.
How is the Non-Delivery Compensation Amount shown in the Invoices?
Earlier, the compensation amount was calculated from the refund amount for the order and wasn’t reflected separately in the invoice. Now, all the non-delivery compensation amounts are allocated to a separate non-delivery compensation invoice.
Non-delivery compensation invoices will always be included in the Joom SIA payments.
How to check NDC information of refunded orders in Merchant Panel?
If an order is covered by NDC, the compensation amount will be shown on the Order Details page.
To check NDC information of a specific order,
- Go to Orders in Merchant Panel account and find an order you want to check.
- Open Order Details by clicking the order ID. Here, you can see:
- Calculated NDC amount. It shows the NDC amount that is due to be paid out to a merchant by Joom.
- Compensated NDC amount. It shows the NDC amount that has been paid out to a merchant by Joom.
You can also check NDC information of multiple orders at once.
- On the Orders page, choose Refunded by Joom using the Status filter. A list of refunded orders will be displayed.
- Click the gear icon and select Compensated NDC amount from the list and other parameters you want to be shown. Now, you can see the list of refunded orders and their NDC amounts.
Joom Logistics Non-Delivery Compensation Amounts Recalculation
There was an error in the calculation of Joom Logistics’ Non-Delivery compensation amounts between September 1st, 2020, and December 30th, 2022. During that time, we overpaid Non-Delivery compensation amounts for some refunded orders. After careful consideration, we regret to inform you that we've decided to withdraw the overpaid compensation amounts.
What Was the Calculation Error that Occurred Previously?
The calculation error occurred because we did not consider the discounts from merchants when calculating the NDC. As a result, the NDC amounts were overcompensated, which should have been equal to the merchant revenue. This caused an accumulation of a difference between the received money and the amount of money we should have paid you.
How will the Overpaid Compensation Amounts be withdrawn?
- We will calculate the NDC amount for the current settlement period that we must pay to the merchant.
- We will set the Calculated NDC Amount equal to the Merchant revenue in finished orders.
- We will run a recalculation, including closed periods.
The recalculated amounts per each order will be reflected in the NDC invoices and order details with a minus sign and marked in red.
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