Amazon Account Health: Delivery Performance (FBM)

Welcome back to the Amazon Account Health Series. So far, we’ve covered Customer Service Performance and Policy Compliance, two of the biggest pillars of keeping your account safe. In this blog, we’re moving on to the third pillar – Delivery Performance.

This section of account health is all about how well you deliver products when you’re selling via FBM (Fulfilled by Merchant). This does not apply to FBA (Fulfilled by Amazon), because with FBA, Amazon controls the shipping. But even if you mainly sell FBA, it’s still important to understand FBM delivery performance, especially if you ever use FBM during Q4, for oversized items, or to keep listings active when FBA stock runs out.

For FBM sellers, Amazon monitors four main metrics:

  • Late Dispatch Rate
  • Pre Fulfillment Cancellation Rate
  • Valid Tracking Rate
  • On Time Delivery Rate

Let’s go through each one, what they mean, and how to manage them.

Late Dispatch Rate

What it is:

This measures the percentage of orders that you confirm as dispatched after the promised ship date. Amazon expects sellers to maintain a late dispatch rate below 4%.

Why it matters:

  • High late dispatch rates lead to poor customer experiences and can cause Buy Box suppression or account warnings.
  • Even if the item arrives on time, a late confirmation in Seller Central still counts against you.

How to combat it:

  • Use a courier service that collects parcels at a reliable time each day.
  • Automate order alerts (email, app, or third-party software) so you never miss a dispatch deadline.

Pre-Fulfillment Cancellation Rate

What it is:

This tracks how often you cancel orders after they’ve been placed but before they’ve been shipped. Amazon expects this to stay below 2.5%.

Why it matters:

  • High cancellation rates signal poor inventory management.
  • It damages customer trust and can lead to account health warnings.

How to combat it:

  • Only list items you physically have in stock.
  • Sync inventory across Amazon and any other platforms you sell on.
  • If stock levels are low, update your listings immediately.
  • Use inventory management tools to stay on top of stock count.

Valid Tracking Rate

What it is:

This measures how many of your orders are shipped with a valid tracking number from a recognised carrier. Amazon expects a valid tracking rate of at least 95%, this actually counts for FBA sellers too, especially when it comes to Dangerous Goods shipments.

Why it matters:

  • Tracking builds buyer confidence and protects you from “item not received” claims.
  • Without valid tracking, you risk A-to-Z Guarantee claims and chargebacks.

How to combat it:

  • Always ship with Amazon-approved carriers (Royal Mail, Evri, DPD, DHL, UPS, etc.).
  • Upload tracking numbers into Seller Central immediately after dispatch.
  • Consider using Amazon’s “Buy Shipping” service, which automatically adds tracking.

On-Time Delivery Rate

What it is:

This tracks the percentage of packages that arrive by the customer’s promised delivery date. Amazon expects sellers to maintain a high on time delivery rate (generally above 97%).

Why it matters:

  • Customers expect fast, reliable delivery.
  • Poor on time delivery rates reduce your chances of winning the Buy Box.
  • Consistent delays can flag your account for performance reviews.

How to combat it:

  • Choose reliable carriers with a strong delivery record.
  • Factor in weekends and holidays when setting handling and shipping times.
  • Always ship orders on time to give couriers the best chance of meeting deadlines.
  • Track carrier performance, if a courier underperforms, switch to a better one.

Delivery Performance Checklist for FBM Sellers

Here’s a quick reference guide to help you stay compliant with Amazon’s delivery standards:

Do’s

  • Dispatch orders on time, every time.
  • Keep accurate, real time inventory levels.
  • Ship using Amazons approved carriers.
  • Upload valid tracking numbers for all orders.
  • Monitor your carrier performance and switch if necessary.
  • Use Amazon’s “Buy Shipping” where possible, it guarantees valid tracking.

Dont’s

  • Don’t list stock you don’t physically have.
  • Don’t use cheap, untracked delivery services.
  • Don’t ignore dispatch deadlines, confirm shipments in Seller Central promptly.
  • Don’t rely on one unreliable courier if they consistently miss delivery targets.
  • Don’t assume customers will be patient with delays, Amazon won’t.

Final Thoughts

Even if you don’t sell much through FBM, understanding delivery performance is vital. Many resellers rely on FBM during Q4, when you can list a bought item as FBA or when FBA stock runs out, and a slip up here can damage your account health just as much as a policy violation.

The four metrics, late dispatch rate, pre-fulfillment cancellation rate, valid tracking rate, and on time delivery rate are the pillars of Amazon’s FBM delivery expectations. Keep these under control, and you’ll avoid unnecessary account health issues.

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Amazon Account Health Policy Compliance (Part 2)

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Amazon Account Health: Account Health Assurance & Manage Your Compliance