OpEx (Operational Excellence)

 Operational Excellence (OpEx) refers to Amazon’s continuous effort to optimize processes, eliminate inefficiencies, and deliver consistent, high-quality outcomes across its vast operational ecosystem - including fulfillment, inventory management, logistics, vendor performance, and customer service.

In the Amazon context, OpEx includes:

• Fast and accurate order fulfillment
• Low error rates in picking, packing, and shipping
• High On-Time, In-Full (OTIF) performance
• Vendor compliance with prep, packaging, and labeling standards
• Streamlined inbound and outbound logistics
• Minimizing defects, chargebacks, and waste

Why OpEx matters:

• Enhances customer satisfaction and loyalty
• Reduces operational costs and manual errors
• Improves Buy Box eligibility, inventory turnover, and profit margins
• Supports scalable growth for both Amazon and its partners
• Influences scorecards, AVN discussions, and business reviews

Sellers and vendors contribute to OpEx by:

• Using Amazon-compliant packaging
• Maintaining high Fill Rate and OTIF metrics
• Managing healthy IPI scores (FBA sellers)
• Responding quickly to operational issues or performance flags

💡 Example: A vendor improves OpEx by switching to Amazon-preferred prep methods and reducing shortage disputes by 80% in one quarter.

In short:
OpEx (Operational Excellence) is Amazon’s standard of delivering efficiency, quality, and consistency at scale - essential for reducing defects, optimizing processes, and maximizing customer satisfaction.