What is Non-Delivery Insurance (NDI)?
Non-Delivery Insurance (NDI) is an insurance service that applies to Joom Logistics orders.
- 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 NDI compensation 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 NDI, 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.