Fulfillment Partner Operating Instructions

These operating instructions are the standards every Cahoot Fulfillment Partner (CFP) agrees to maintain. They cover the performance metrics you're measured against, how to receive inventory, how to ship orders accurately and on time, and your obligations around inventory accuracy, invoicing, and confidentiality. Review this article periodically — it is your responsibility to know these obligations.

Performance Metrics You Must Maintain

Cahoot measures every Fulfillment Partner against the following metrics. Falling below these targets puts your payments and your network participation at risk.

Your Commitment as a Cahoot Fulfillment Partner

• Fulfill orders Monday through Saturday, excluding only US Postal Service observed holidays and Amazon listed holidays.
• Route all communication through Cahoot. Network participants do not contact each other directly, and the anonymity of all participants is respected. Notify Cahoot Support immediately if a Seller contacts you directly.
• Keep your account information current, including contact details and warehouse address. Cahoot keeps mobile numbers for your primary personnel and business owners on file for emergencies.
• Train your own newly hired warehouse staff after Cahoot's initial training, and refresh your team's knowledge as needed. Paid instructor-led training is available on request.
• Maintain the insurance coverage described in Fulfillment Partner Insurance Requirements.
• Adhere to these Operating Instructions, your Fulfillment Services Agreement, and your Software Subscription and License Agreements at all times.
• Never misrepresent yourself or your intentions.

If your warehouse cannot operate because of weather, power loss, or another emergency, follow Fulfillment Partner Emergency Warehouse Closure and contact Cahoot immediately.

Receiving Inbound Inventory

Verify the condition and quantity of every inbound shipment within your SLA — typically within 2 business days of receipt. You are accountable for Cahoot inventory from the moment it arrives.

• Open every carton. Do not assume they are full, especially when the shipment came directly from a supplier.
• Receive all Cahoot inventory using the scannable barcode labels. See How to Receive Inbound Shipments.
• Store Cahoot inventory in clearly marked, unique bin locations, and treat it with as much care as your own merchandise.
• Follow any special storage conditions Cahoot communicates in advance. You'll receive notice of new inbound inventory including products, approximate quantities, and storage instructions.

Missing the receiving SLA may result in throttled inventory allocation or removal of existing inventory from your warehouse. If a shipment arrives damaged, mislabeled, or otherwise non-compliant, see Handling Damaged SKUs when Receiving Inbounds and What to Do When an Inbound Has Receiving Issues.

Ship Accurately, Ship On Time, Every Time

Cahoot releases shipping labels automatically throughout the business day until 2:45 PM local time, Monday through Friday and 12:45 PM local time on Saturdays. You must ship every Cahoot order on the same business day its label is provided, without exception, using only labels provided by Cahoot. Cahoot may change this schedule as ecommerce delivery expectations shift.

You are held accountable for late shipments and fulfillment errors. Do not expect reminders or notifications. Labels for late shipments are voided, and the cost of replacement express labels is charged to you. For the daily process end to end, see Daily Workflow for Fulfillment Partners.

Scan Verification and End of Day Forms

Every order must be fulfilled using Cahoot Scan Verification. A shipment with no verification scan is not payable, even if it was delivered on time.

• Scan the Cahoot End of Day form every shipping day. It's generated automatically by 2:45 PM local time and must be scanned after packages are handed to the carrier, not when it prints. Cahoot records all timestamps and can see when a form was scanned before carrier pickup. See Scanning Cahoot End of Day Form.
• Ensure every shipment receives a carrier scan before it leaves your warehouse. Drivers scanning packages back at the hub is not acceptable, and Saturday shipments are no exception. See Reconfirm Orders were Handed to Carrier.
• If a barcode won't scan, resolve it rather than skipping verification. See Resolving Issues with Barcode Scan Verification.

Packaging and Shipping Supplies

Use the pre-assigned packaging materials for every order and follow the fulfillment instructions printed on the packing slip. Labels are priced and rated on the assumption that the assigned packaging is used, so substituting packaging can cause damage in transit or additional carrier fees.

• Never bend, fold, squeeze, or ship inventory in packaging too small to protect it.
• Submit Ticket if an assigned box or mailer is the wrong size for an order.
• Cahoot provides all shipping supplies unless arranged otherwise, tracks your supply levels, and sends replenishments automatically. Report shortages well before you stock out.
• Give Cahoot the list of shipping supplies you routinely keep in stock for uncommon multi-line or multi-quantity orders. Cahoot reimburses you for any of your own packaging used on Cahoot orders.
• Include a packing slip in every Cahoot shipment. The only exception is inventory that is pre-prepared and ready to ship as-is without overpacking.

Carrier Pickups

You schedule and manage your own carrier pickups, and must maintain at least one national carrier in addition to USPS, such as UPS or FedEx. Align pickup times with the 2:45 PM label cutoff, or plan to drop off at local hubs.

Notify Cahoot Support immediately about any pickup problems. If a driver doesn't show, you are responsible for dropping packages at the local hub.

Quality Control Inspections

Carriers frequently route undeliverable packages to Cahoot HQ, and Cahoot inspects them for quality control. Cahoot also performs periodic test buys to confirm that orders are packed to these standards and that required services were included, such as packing slips, bubble wrap, and inserts. Defects found either way are recorded as performance violations.

Error Rates and Performance Violations

Your error rate is the percentage of services performed incorrectly. It includes, but is not limited to:

• Orders shipped after the Cahoot Ship By Date
• Orders shipped without scan verification
• Skipped Cahoot End of Day scan forms
• Wrong item shipped
• Wrong quantity shipped
• Late receiving or putaway
• Missed SLAs for inbound receiving, work orders, and cycle counts

Failing to stay below the maximum error rate for 2 consecutive weeks, or for any 4 weeks in a calendar year, may result in adjustment or forfeiture of payments under your Fulfillment Partner Agreement. Repeated violations can lead to suspension or removal from the network. For the full list of violation codes and the resolution applied to each, see the Performance Violations and Resolutions Policy.

Special Projects and Work Orders

Special projects include inventory barcoding, returns processing, and pallet prep for freight forwarding, among others. You are compensated for successfully completed prep services and special projects according to your Fulfillment Partner Agreement, and these fees are reported separately from payable fulfillment fees. See Processing Work Orders Overview.

Cahoot may occasionally request an inventory removal and ask you to prep the shipment safely for large parcel or LTL pickup. You are compensated for the removal and for any shipping materials used.

Invoicing Cahoot

Submit an invoice after completing receiving and putaway, inventory removal, and special projects. Submit promptly to avoid delays in payment processing, and notify Cahoot Billing (billing@cahoot.ai) if anything about an invoice is unusual. Cycle count time is added to your monthly statement automatically — no invoice needed. See Creating Invoices.

Inventory Counts, Losses, and Site Visits

Report any issue with Seller inventory immediately, including loss, spoilage, theft, or damage. You are held accountable for improper storage or handling of inventory in your possession that results in spoilage, theft, delays, loss, or damage. If inventory is lost or misplaced, you are responsible for 100% of the item's retail price and receive a performance violation that lowers your Cahoot Rating.

• Report any return-to-sender shipment within 24 hours of receipt. See Return to Sender Processing for Cahoot Fulfillment Partners.
• Provide cycle counts for a small number of Cahoot SKUs every 2 weeks, and respond to ad hoc count requests within 2 business days. Ad hoc requests happen when Cahoot finds a discrepancy between reported counts and expected quantities. See How to Process Cycle Counts.
• Perform all recounts after the day's Cahoot fulfillments are processed, so the Quantity on Hand is accurate.
• Cahoot may schedule site visits to inspect your facility and inventory, with at least one business day of notice.

Conflict of Interest

You are strictly prohibited from adding Cahoot inventory to your own product catalog, from directly or indirectly selling the same items, and from marketing them for sale on any platform, online or offline. This restriction applies for as long as you participate in the program and for the 18 months following your departure from it. See your Fulfillment Partner Agreement for details.

Video Walkthrough

Last updated: 08/24/2026