What is the Late Shipment Rate? And How Can You Reduce It to Protect Your Amazon Account

Home » What is the Late Shipment Rate? And How Can You Reduce It to Protect Your Amazon Account

In the world of Amazon, your performance is everything. Customers expect reliable, fast shipping, and Amazon holds sellers to a high standard to maintain trust in the marketplace. One of the most important metrics tracking your reliability is your Late Shipment Rate (LSR).

Late Shipment Rate, Infobeam Solution

A high LSR is a direct red flag to Amazon that you may not be fulfilling orders reliably, which can have serious consequences for your business. This guide will break down what LSR is, why it matters, and provide a clear action plan to reduce it and protect your account health.

Table of contents

What is the Late Shipment Rate (LSR)?

Your Late Shipment Rate is the percentage of orders you confirmed to have shipped after the expected ship date you set for your products.

It is a key metric under the Shipping Performance section of your Account Health dashboard in Seller Central.

Amazon’s Strict Benchmark: Your LSR must be below 4%.

Exceeding this rate can put your account at risk of deactivation. It’s a non-negotiable standard for maintaining good standing.

How is the Late Shipment Rate Calculated?

Amazon calculates your LSR over a rolling 30-day period. The formula is simple but brutal:

Late Shipment Rate (%) = (Number of orders shipped late / Total number of orders) x 100

Example:
If you had 200 orders in the last 30 days and 10 of them were shipped after their expected ship date, your LSR would be:
(10 / 200) x 100 = 5% (This is above the 4% threshold and puts your account at risk).

Why is a Low Late Shipment Rate So Important?

  1. Account Health Protection: This is the primary reason. Consistently exceeding the 4% threshold is a direct violation of Amazon’s policy and is a leading cause of account suspensions.

  2. Winning the Buy Box: Amazon’s algorithm favors reliable sellers. A high LSR signals unreliability, making you less likely to win the coveted Buy Box, which can devastate your sales.

  3. Customer Satisfaction: Late orders lead to negative feedback, poor product reviews, and an increase in customer messages and A-to-z Guarantee claims. This creates a negative feedback loop that further harms your metrics.

  4. Seller Fulfilled Prime (SFP) Eligibility: To qualify for and maintain SFP status, your LSR must be exceptionally low, typically well under the 4% requirement.

Top Reasons for Late Shipments (And How to Fix Them)

To reduce your LSR, you must first diagnose the root cause. Here are the most common reasons and their fixes:

1. Incorrect Handling Time Settings

  • The Problem: Your handling time is set to 1 or 2 days, but in reality, it takes you 3 or 4 days to procure, pack, and hand off the order to the carrier.

  • The Solution: Be realistic with your handling time. It’s better to set it to 3 days and consistently ship early than to set it to 1 day and constantly ship late. You can adjust this in your Shipping Settings.

2. Not Uploading Tracking On Time

  • The Problem: You handed the package to the carrier on time, but you didn’t upload the tracking number to Amazon within the handling time window. Amazon only cares when you confirm the shipment.

  • The Solution: Implement a strict daily workflow. Upload tracking information the same day you ship orders. Consider using shipping software that integrates with Seller Central to automatically upload tracking numbers.

3. Using the Wrong Carrier or Service

  • The Problem: You use a carrier that doesn’t scan packages immediately. A package might not get its first scan for 24-48 hours after you drop it off, making it “late” in Amazon’s eyes.

  • The Solution: Use carriers with reliable and immediate scan practices. If you use USPS, ensure you get a receipt at the counter as proof of drop-off. For high volume, use carriers that offer scheduled pickups.

4. Weekends and Holidays

  • The Problem: Your handling time is set to business days, but you forget that an order placed on a Friday with a 2-day handling time is due to ship by Sunday—a day you may not operate.

  • The Solution: Adjust your “Business Hours” in Shipping Settings to reflect when you are actually open and shipping orders. This will prevent orders from being due on days you’re closed.

A 5-Step Action Plan to Reduce Your Late Shipment Rate

  1. Audit Your Settings: Immediately review your Handling Time and Business Hours in Seller Central. Ensure they reflect your actual operational capacity.

  2. Standardize Your Process: Create a daily cut-off time for orders. All orders placed before that time should be shipped the same day. All orders after should be shipped the next business day.

  3. Use Integrated Shipping Software: Tools like ShipStation, ShippingEasy, or Amazon’s own Buy Shipping services can automate label printing and, most importantly, automatically upload tracking numbers to Amazon the moment you create the label.

  4. Monitor proactively: Don’t wait for a warning. Regularly check your Account Health > Shipping Performance dashboard to monitor your LSR in real-time.

  5. Communicate During Crises: If an unexpected event (e.g., a weather disaster, supplier delay) will cause widespread shipping delays, proactively update your handling time and consider using the “Vacation Mode” feature to temporarily pause listings.

What to Do If Your Rate is Already High

If your LSR is above 4%, take immediate action:

  1. Increase Handling Time: Temporarily increase your handling time by a day or two across all listings. This is a quick fix to stop the bleeding and prevent new late shipments.

  2. Ship Everything Early: Make it a priority to ship every new order early. This will help dilute the percentage of late shipments in the 30-day window.

  3. Analyze the Damage: In the Performance > Customer Service > Shipping Performance reports, download the report to see exactly which orders were late and why.

Conclusion: Punctuality is Profit

On Amazon, shipping on time isn’t just a courtesy—it’s a core component of your business’s health and profitability. A low Late Shipment Rate builds trust with both Amazon and your customers, leading to more sales, better placement, and a secure account.

By auditing your processes, leveraging technology, and setting realistic expectations, you can transform shipping from a constant source of stress into a competitive advantage.

Struggling with shipping metrics and worried about your account health? The operations experts at Infobeam Solution can audit your processes, recommend the right tools, and help you build a reliable fulfillment system. Call us: +91 96545 53640 or email sales@infobeamsolution.com. for a free fulfillment audit today!

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