Amazon frequently updates its vendor requirements, making it critical for Amazon vendors to stay on top of changes to ensure compliance and avoid chargebacks. A recent update includes an adjustment to on-time shipment expectations for North American vendors, raising the bar for shipping requirements.

In this article, we’ll deep dive into what’s changed, why it matters for vendors, and best practices to keep shipments on time and compliant.

Key Insights

• Amazon now expects an on-time shipment rate of 95%, up from its previous expectation of 90%.
• On-time shipment performance is measured differently for prepaid (TheyPay) and collect (WePay) vendors, but both rely on accurate and timely ASNs.
• Small documentation errors — like missing or incorrect single shipment identifiers — can significantly impact on-time shipment compliance.

What’s Changing: On-Time Shipment Rate

Previously, Amazon required a 90% on-time shipment rate for vendors (both prepaid and collect). Meeting this standard meant vendors did not receive chargebacks for late shipments, provided they maintained the 90% rate in the previous week. But as of January 2026, the expected rate has now increased to 95%.

This update is being rolled out in two phases:

• Phase 1: Trailers that check in between January 26 and February 26, 2026 will have on-time shipment defects surfaced but not invoiced.
• Phase 2: Trailers that check in starting February 27, 2026 will have on-time shipment defects surfaced and invoiced.

What the Change Means for Vendors

For vendors, this change means they are expected to meet a higher level of on-time shipment performance. In practice, this looks different depending on the type of shipment method used.

Vendors shipping collect, also known as WePay, are measured by whether their shipment is ready and picked up within the designated window (known as the freight-ready date).

Vendors shipping prepaid, also known as TheyPay, are measured by whether their shipment arrives within the designated delivery window.

For both shipment methods, Amazon measures vendor on-time compliance using Advance Shipment Notices (ASNs).

For collect shipments, Amazon uses the Amazon reference number (ARN), also called the single shipment identifier on the ASN to link the shipment to the routing request, then evaluates whether the freight-ready date falls within the assigned ship window.

For prepaid shipments, the progressive rotating order (PRO) or bill of lading (BOL), also called the single shipment identifier, is used to locate and link the ASN to the correct delivery appointment, which Amazon then uses to determine whether the shipment arrived within the scheduled delivery window.

How Vendors Can Prepare

With Amazon increasing its on-time shipment expectation to 95%, even minor process gaps in your supply chain can quickly turn into costly chargebacks. Because Amazon relies heavily on ASNs to evaluate on-time performance, vendors must ensure their shipping data, carrier coordination, and internal processes are tightly aligned.

1. Follow Best Practices for On-Time Shipments

Collect vendors should:

• Ensure ASNs are complete, with accurate Amazon reference numbers.
• Submit ASNs before the trailer arrives at the Amazon fulfillment center.
• Schedule pickups within the shipment window listed on the PO.
• Update your facility hours as needed to ensure pickups are scheduled within your operating hours.
• Have freight ready for prompt loading when the truck arrives.

Prepaid vendors should:

• Provide an accurate single shipment identifier on the ASN and appointment signal. Both the vendor and carrier should have the same single shipment identifier.
• Submit the ASN before the trailer arrives at the Amazon fulfillment center.
• Ensure carriers are aligned to deliver the shipment within the delivery window listed on the PO.

2. Look Out for Chargebacks

Chargebacks for on-time shipments can be managed in the Operational Performance dashboard within Vendor Central. There are three types of Amazon chargebacks linked to on-time shipment performance:

1. Not on time: Occurs when a prepaid vendor’s shipment does not arrive during the PO delivery window or when a collect vendor’s shipment does not meet the freightready date of the PO ship window.
   • Chargeback rate: 3% of the cost of goods sold
   • Compliance rate to avoid chargeback: 95%
2. Pickup accuracy: Occurs when a collect vendor (either truckload or less-thantruckload) reschedules a shipment after 5 p.m. PT the day before the pickup was originally scheduled.
   • Chargeback rate: $500 for truckload; $55 for less-than-truckload (based on Amazon reference number warehouse location)
   • Compliance rate to avoid chargeback: 100%
3. Missing or incorrect single shipment identifier: Occurs when the single shipment identifier on the ASN is missing or incorrect.
   • Chargeback rate: 3% of the cost of goods sold
   • Compliance rate to avoid chargeback: 100%*

*Please note that Amazon’s Vendor Central documentation, “Chargebacks—problems with shipments”, lists two different compliance rates. One section says 95% compliance rate, while another says 100%. Our team is actively working to confirm which is correct.

3. Safeguard Your Revenue

If you’ve got a growing pile of Amazon chargebacks, SPS Revenue Recovery can help you get paid and prevent future losses — reducing the workload for your team. That means faster dispute resolution times, fewer manual touchpoints, and more predictable revenue for your business.