O2C

Order to Cash (O2C) is a core operational workflow that covers every step a vendor goes through when doing business with Amazon Retail (1P). It starts the moment a Purchase Order (PO) is received and ends when payment is collected - including all the logistical and financial steps in between.

Typical O2C process for Amazon vendors:

1. PO Receipt - Amazon places a purchase order
2. Order Confirmation - vendor acknowledges the PO
3. Shipment Creation - preparing and booking transportation (ISA, BOL, ASN)
4. Delivery to FC - goods delivered and received at Amazon Fulfillment Center
5. Invoicing - invoice is submitted through EDI or Vendor Central
6. Payment Processing - Amazon validates and issues payment
7. Dispute Resolution - addressing chargebacks, shortages, or payment discrepancies
8. Reporting & Reconciliation - tracking revenue, performance, and financial health

Why O2C matters:

• Critical for cash flow and vendor health
• Delays or breakdowns in the process can result in chargebacks, payment holds, or PO cancellations
• Amazon monitors O2C performance using metrics like Fill Rate, On-Time Delivery, and Invoice Accuracy

💡 Example: A vendor ships 1,000 units of shampoo after receiving a PO, creates the invoice, and receives payment within 30 days - completing the O2C cycle.

In short:
O2C (Order to Cash) is the complete process of fulfilling a sale to Amazon - from purchase order to payment - and is critical for operational efficiency and financial success in the 1P vendor relationship.