VCR

VCR is one of the core operational metrics used by Amazon to evaluate vendor reliability and supply chain performance.
It tracks how consistently vendors accept and confirm the quantities Amazon wants to purchase.

A high VCR means the vendor is able to meet Amazon’s demand and confirm most or all PO units.
 A low VCR indicates supply constraints, poor forecasting alignment, or catalog issues.

How VCR is calculated:
Confirmed PO units ÷ Requested PO units

Example:
 Amazon orders 10,000 units.
 The vendor confirms 8,000 units.
 VCR = 80 percent.

What affects VCR:

• vendor manufacturing capacity
• supply shortages
• long or unstable lead times
• discontinued SKUs
• incorrect cost or terms in VC
• wrong case pack or carton setup
• poor forecast accuracy between Amazon and vendor

Why VCR matters to Amazon:

• Ensures high in stock rates
• Supports stable customer experience
• Helps Amazon plan FC inventory and forecasting
• Identifies supply chain risks early
• Influences PO volume and vendor trust score

Why VCR matters to vendors:

• Higher VCR leads to more consistent POs
• Strengthens relationship with Amazon retail teams
• Reduces OOS and lost sales on key ASINs
• Improves vendor scorecard results
• Impacts eligibility for programmes like AVS or Born to Run

Typical Amazon expectations:
Most categories aim for 95–100 percent VCR, though seasonal and fashion categories may vary.

Example:
A vendor consistently confirms 98 percent of Amazon’s weekly POs.
This high VCR demonstrates strong operational reliability, leading Amazon to increase order volumes during peak events like Prime Day.

Why It Matters:
VCR shows how dependable a vendor is at supplying Amazon with the inventory needed to stay in stock and maintain strong sales performance.

In short:
VCR (Vendor Confirmation Rate) measures the percentage of PO units a vendor successfully confirms, reflecting how reliably they can meet Amazon’s demand.