The On-Time Delivery Rate (OTDR) represents shipments delivered by their estimated delivery date as a percentage of total tracked shipments. OTDR only applies to seller-fulfilled orders.
We consider OTDR performance when determining which Transit Times you are eligible to set, which may enable you to promise faster delivery times and improve your conversion.
We recommend that sellers maintain an OTDR greater than 97% in order to provide a good customer experience, however there is no penalty for not meeting the performance target at this time.
Customers tell us that receiving their orders on time and having the ability to track their packages are important factors in their overall satisfaction with an order. Our research shows that tracked orders have 60 percent fewer order defects and that tracking also helps reduce order inquiries from buyers.
If you meet Amazon's targets for On-Time Delivery and Valid Tracking Rate, you may be eligible to offer reduced shipping or handling times on your products. To learn more, see Modify handling time.
This metric is intended to help you understand the cause of negative feedback and claims. When packages arrive late or are shipped without tracking, buyers are more likely to leave negative feedback or file claims. This directly impacts your performance metrics. Therefore, it is important to review your on-time delivery and tracking-usage rates regularly.
Failure to meet Amazon's target for this metric generally does not result in the suspension of your selling account. However it could cause negative feedback or claims, which could impact your selling account status. To help you monitor your on-time delivery metrics, we have added a performance indicator to the Account Health.
A package is considered on time if the following requirements are met:
To calculate the percentage of packages delivered on time, we divide the number of tracked packages that were delivered on time, as confirmed by the carrier, by the number of packages that have valid tracking information. Your on-time delivery rate typically reflects your shipping performance data as of two weeks prior to the date you view the rate. This allows carriers time to update delivery confirmation data in their databases.
If a package is confirmed as shipped after the estimated delivery date, the package is not considered to be delivered on time.
The number in parentheses next to your on-time delivery rate is the total number of packages buyers received on time. It is used to calculate the on-time delivery rate.