Overview

• On-Time Delivery Rate: The percentage of orders delivered to customers on or before the estimated delivery date. Amazon expects at least 97%.
• Late Shipment Rate: The percentage of orders that are confirmed for shipment after the expected ship date. Amazon expects this to be below 4%.

Maintaining these metrics is critical to your account health and seller performance.

Steps to Keep Your On-Time Delivery Rate and Late Shipment Rate in Good Standing

1. Set Realistic Handling and Shipping Times

Why it matters: Unrealistic expectations for shipping and handling can lead to late shipments and missed delivery deadlines.

• Set Handling Time:
  1. Navigate to Inventory > Manage Inventory in Seller Central.
  2. For each product, edit the Handling Time (processing time before shipping).
     • Standard: 1–2 business days.
     • For custom or made-to-order items, set longer handling times.
• Set Shipping Times:
  1. Go to Settings > Shipping Settings in Seller Central.
  2. Define delivery speeds for each shipping method (Standard, Expedited, Two-Day).
     • Be realistic about delivery speeds based on your carrier’s capabilities.

2. Confirm Shipments on Time

Why it matters: Orders not marked as “shipped” by the promised handling time count as late, even if they are shipped on time.

• Steps to Confirm Shipment:
  1. Go to Orders > Manage Orders in Seller Central.
  2. Click Confirm Shipment for pending orders.
  3. Enter:
     • Carrier Name (e.g., UPS, USPS).
     • Tracking Number.
     • Ship Date.
  4. Click Confirm Shipment to update the order status.

Tip: Use bulk upload options or third-party integrations to confirm shipments faster for high-volume orders.

3. Use Reliable Shipping Carriers

Why it matters: Delivery delays by unreliable carriers negatively impact your On-Time Delivery Rate.

• Preferred Carriers: Use Amazon’s Buy Shipping Services, which ensures tracking is automatically updated, and delivery performance is guaranteed.
  1. Go to Orders > Manage Orders and click Buy Shipping for each order.
  2. Select a carrier and shipping speed that meets the delivery date.
• Tip: Regularly monitor carrier performance and switch carriers if delivery delays occur frequently.

4. Monitor and Manage Inventory Levels

Why it matters: Running out of stock causes delays in shipping and late order fulfillment.

• Steps to Manage Inventory:
  1. Use the Restock Inventory Tool in Seller Central to identify low-stock items.
  2. Set up alerts for inventory thresholds under Settings > Notification Preferences.
  3. Use Amazon’s FBA (Fulfilled by Amazon) to leverage their inventory and logistics system.

5. Process Orders Daily

Why it matters: Delayed order processing leads to late shipments and missed deadlines.

• Best Practices:
  1. Log in daily to review and process orders.
  2. Use automation tools like Amazon MWS (Marketplace Web Service) or third-party solutions to streamline order management.

6. Communicate Proactively with Buyers

Why it matters: Clear communication can mitigate the impact of delays on your metrics and avoid negative feedback.

• Steps to Communicate:
  1. If a delay is inevitable, message the buyer via Orders > Manage Orders > Contact Buyer.
  2. Provide a clear explanation and new estimated delivery date.
  3. Offer a partial refund or discount if necessary to maintain customer satisfaction.

7. Track Performance Metrics Regularly

Why it matters: Staying informed about your performance allows you to take corrective actions quickly.

• Steps to Track Metrics:
  1. Go to Performance > Account Health in Seller Central.
  2. Review:
     • On-Time Delivery Rate.
     • Late Shipment Rate.
     • Feedback and Order Defect Rate (related to shipping delays).
• Tip: Amazon sends performance notifications if metrics fall below expectations. Act immediately to address issues.

8. Leverage Fulfillment by Amazon (FBA)

Why it matters: FBA handles inventory storage, shipping, and customer service, ensuring high delivery standards.

• Steps to Enroll in FBA:
  1. Go to Inventory > Manage Inventory.
  2. Select products and click Convert to Fulfilled by Amazon.
  3. Follow the steps to send your inventory to Amazon’s fulfillment centers.

9. Use a Shipping Buffer

Why it matters: A buffer prevents unexpected delays from impacting your metrics.

• How to Set a Buffer:
  1. Add 1–2 extra days to your handling time and shipping time when setting delivery promises.
  2. Use expedited shipping methods to meet delivery deadlines when needed.

10. Resolve Issues with Carriers Quickly

Why it matters: Late deliveries caused by carriers still impact your metrics.

• Steps to Resolve Carrier Issues:
  1. Track orders daily to identify delays.
  2. Contact your carrier’s customer service for resolution.
  3. Use Amazon’s A-to-Z Guarantee Claims Process if the carrier fails to meet their commitment.

Final Tips for Long-Term Success

1. Automate Processes: Use tools like inventory management software and order tracking systems to streamline your workflow.
2. Stay Updated: Regularly review Amazon’s shipping policies and performance requirements.
3. Provide Excellent Customer Service: Respond promptly to inquiries about order status and delivery.

By following these steps, you can consistently maintain a strong On-Time Delivery Rate and a low Late Shipment Rate, keeping your Amazon seller account in good standing.