Delivery performance mainly evaluates sellers’ self-delivered orders. It uses three values, namely, late shipment rate, pre-delivery cancellation rate, and effective tracking rate, to track and evaluate orders before, during, and after delivery. Sellers can view the details of each indicator and download the corresponding report in the delivery performance section of the account status page. Generally speaking, as long as the store FBA ratio is increased, various delivery performance problems can be solved.
1. Late Shipment Rate
The late shipment rate (LSR) is the percentage of orders confirmed for delivery after the estimated delivery time to the total number of orders within a 10-day or 30-day period. This indicator evaluates whether sellers can handle self-delivered orders in a timely manner. According to Amazon’s policy, sellers should maintain a late shipment rate below 4%, otherwise their accounts may be deactivated. Generally speaking, the default handling time (HandingTime) is 2 working days, and the specific estimated delivery date will also be adjusted according to national statutory holidays. Therefore, from the time the buyer places an order to the time the seller uploads the logistics tracking number, it must not exceed 2 days, otherwise it will be directly counted in the late shipment rate.
Some sellers may prepare tracking numbers in advance, mark shipments before the expected delivery date, and then process orders. If the logistics tracking number is uploaded in advance but valid logistics information cannot be found, or the tracking number is frequently modified after shipment, it will be judged as false shipment by Amazon, which may also lead to the removal of account sales permissions. Once you receive a small red flag of such notification, you also need to appeal.
The main reasons for the excessive late shipment rate include out of stock, too short processing time setting, unprocessed orders during vacation, ERF marked shipment delays, etc.
2. Pre-delivery cancellation rate
The pre-delivery cancellation rate (CR) is the percentage of all orders canceled by sellers in a given 7-day period to the total number of orders. According to Amazon’s policy, sellers should maintain a pre-delivery cancellation rate below 2.5%, otherwise the account may be deactivated. In addition, deciding not to ship an order before confirming shipment is considered a cancellation. After the order is confirmed to be shipped, deciding to accept returns or not to ship the goods is considered a refund. In the order cancellation in the buyer’s message, there is a mention of how to solve the buyer’s cancellation process for orders that have not yet been shipped.
The main reasons for the pre-delivery cancellation rate not meeting the standard include buyer cancellation, promotion setting errors, out of stock, etc.
3. Valid Tracking Rate
The Valid Tracking Rate (VTR) is the percentage of orders with valid tracking codes queried by Amazon to the total number of confirmed shipped orders within a given 30-day period. Using a carrier that does not cooperate with Amazon will result in an invalid tracking code because Amazon cannot receive the updated tracking status of the package. The tracking code is considered valid only when there is at least one carrier scan recorded by Amazon in the delivery status.
According to Amazon’s policy, sellers must maintain a valid tracking rate greater than or equal to 95%, otherwise their account may be deactivated. The valid tracking rate is used to measure the frequency with which sellers use valid tracking codes for orders, and generally has a lag period of 2 weeks, which allows orders enough time to be included in the relevant statistics.
The main reasons for the reduction in the valid tracking rate include the use of carriers not recorded by Amazon, out of stock orders, etc.
4. On-time delivery rate
The on-time delivery rate (OTDR) is the percentage of shipments delivered before the estimated delivery date to the total number of tracked orders in the two weeks before the seller checked the on-time delivery rate. According to Amazon’s seller self-delivery policy and guidelines, the on-time delivery rate is not less than 97%. Currently, failure to achieve this indicator will not lead to account suspension, but may lead to bad reviews, negative feedback or claims, which will affect the link situation and account status.
The main reasons for the reduction in on-time delivery rate include delayed shipments, out-of-stock, extreme weather and other force majeure factors.