Amazon Now Enforcing the On-Time Delivery Rate for Merchant Fulfilled Sellers

Starting September 25, 2024, Amazon will officially start enforcing the On-Time Delivery rate for merchant-fulfilled shipments. This new rule has sparked some frustration among sellers, who argue that once an order is handed over to a shipping carrier, its timely arrival is beyond their control.

What is the On-Time Delivery Rate for Merchant-Fulfilled Amazon Sellers?

The On-Time Delivery (OTD) rate is the percentage of orders that were delivered prior to the “deliver-by” date presented within Seller Central.  

This metric has been in place for many years in a “beta” form, meaning it was not actively enforced. Amazon has now decided to begin enforcing this metric. You can view it within your account health dashboard by using the Seller Central menu and choosing Performance > Account Health.  

As of now, the requirement is set at a target of >90% on time deliveries. Amazon, however, is recommending that to maintain a good customer experience, sellers should aim at >95%, which suggests they may change the requirement to 95% or greater eventually.  

Utilizing Amazon’s Buy Shipping Service to Prevent a Poor On-time Delivery Rate:

If sellers decide to utilize Amazon’s Buy Shipping services for their orders, they will not be impacted by any delayed deliveries. We recommend merchant-fulfilled sellers to begin exploring if Amazon Buy Shipping is a good option for your business, for the sake of keeping your account in good standing.

Unlike other shipping metrics, the On-Time Delivery (OTD) rate is based on factors entirely outside of a seller’s control. Many sellers have expressed the irony of this, but realistically, this has been a long-time coming, and this is a way for Amazon to begin enforcing sellers to use their Buy Shipping services unless they want to risk their account health.

Amazon stated that in scenarios where there are disruptive weather events, the impacted orders will not count against the On-Time Delivery rate. However, many sellers are skeptical of this as per the Seller Forum announcement post. It would be wise to start preparing to make the switch to Amazon Buy Shipping, which can be integrated to an API system for ease of use.

If you're a client looking for more information, contact your account team! If you’re interested in learning more about how Blue Wheel can aid in your brand efforts in online marketplaces, schedule a consultation with our team, we would love to hear from you.