Why This Matters to Distributors: Amazon Business is imposing a delivery-performance requirement built specifically around how commercial customers receive orders. Sellers that handle their own fulfillment must now deliver at least 90% of qualifying shipments during customers’ operating hours. For distributors selling through Amazon Business, the policy puts greater emphasis on carrier performance, accurate delivery estimates, and the ability to meet the receiving schedules of commercial customers.
Amazon Business is tightening delivery requirements for sellers that fulfill their own orders, with a new performance standard taking effect Sept. 30 that could determine whether their products remain available to Amazon’s business customers.
Sellers in Amazon’s U.S. store must maintain a Business Hour Delivery Rate of at least 90% for qualifying seller-fulfilled shipments to Amazon Business customers, according to Amazon. The metric applies to seller-fulfilled orders going to Amazon Business customers with commercial addresses.
Amazon calculates the rate over a rolling 14-day period, measuring the percentage of seller-fulfilled shipments delivered during a business customer’s operating hours.
Amazon said the requirement is intended to reduce unattended or lost packages and repeat delivery attempts. The company said receiving shipments during operating hours helps business customers receive orders securely and on time.
Sellers whose Business Hour Delivery Rate is below 90% on Sept. 30 will be notified and receive recommendations from Amazon on how to improve their performance. If a seller remains below the threshold by Oct. 30, Amazon said its seller-fulfilled offers may be deactivated for Amazon Business customers.
The policy does not affect offers fulfilled through Fulfillment by Amazon or Amazon’s own retail offers, according to the company.
Amazon has already added the Business Hour Delivery Rate to the Eligibilities section of its Account Health dashboard, where sellers can download reports and monitor performance. The company recommends that sellers identify carriers with business-hour delivery rates above 90% and consider using those carriers for future self-fulfilled Amazon Business orders.
For U.S. shipments, Amazon specifically recommends UPS Ground, UPS Ground Saver, and FedEx Ground for what it describes as reliable business-hour delivery performance.
Amazon also recommends using reliable carriers and setting accurate handling and transit times. The company said shipments using Automated Handling Time, Shipping Settings Automation and Amazon Buy Shipping together are guaranteed by Amazon to meet the Business Hour Delivery Rate requirement.
The change adds a B2B-specific performance standard to Amazon’s seller requirements. Unlike residential deliveries, commercial deliveries can depend on receiving departments, loading docks and facilities operating within defined hours.
For distributors and other sellers handling their own fulfillment through Amazon Business, the new standard means delivery performance is no longer determined solely by whether an order reaches its destination. The timing of the delivery also matters when Amazon determines whether a seller meets the standard.
The consequences are specific to Amazon’s business marketplace. Amazon says sellers that fail to improve their performance could lose eligibility for their seller-fulfilled offers to appear to Amazon Business customers, while Fulfillment by Amazon and Amazon retail offers would remain unaffected.
Amazon announced the requirement several months before its effective Sept. 30 date, giving sellers time to monitor their performance and adjust carriers and shipping settings. The requirement moves the Business Hour Delivery Rate from a performance metric to a standard Amazon can use in determining seller eligibility for business customers.
Do not miss any content from Distribution Strategy Group. Join our list.
Share this article:
