Amazon places customer satisfaction at the core of its business, and Late Shipment Rate (LSR) is one of the key performance metrics that sellers must maintain. If your LSR exceeds Amazon’s 4% threshold, you risk losing the Buy Box, facing account restrictions, or even getting suspended.
To stay compliant, sellers must understand what causes high LSR, how to reduce late shipments, and what to do if their account is flagged for late shipping violations. In this guide, we’ll break down LSR, its impact, and proven strategies to keep your shipping performance in check.
1. What Is Amazon Late Shipment Rate (LSR)?
LSR measures the percentage of orders confirmed as shipped after the expected ship date. Amazon calculates it using the following formula:LSR=(Late ShipmentsTotal Orders)×100LSR = \left( \frac{\text{Late Shipments}}{\text{Total Orders}} \right) \times 100LSR=(Total OrdersLate Shipments)×100
📌 Example: If you had 200 orders in a 30-day period and 10 of them were shipped late, your LSR would be 5%, which is above Amazon’s acceptable 4% threshold.
A high LSR can lead to:
- 🚫 Loss of Buy Box eligibility, reducing your visibility and sales.
- 🚫 Account warnings or suspension for repeated violations.
- 🚫 Customer dissatisfaction, leading to negative feedback and poor seller ratings.
Keeping your LSR low is essential to maintaining a healthy seller account and strong reputation on Amazon.
2. Common Causes of High LSR
To reduce late shipments, sellers must first identify the root causes. The most common reasons include:
2.1 Poor Inventory Management
Running out of stock or failing to track inventory properly can cause fulfillment delays. Without a real-time inventory management system, sellers may oversell products that are out of stock, leading to missed shipping deadlines.
2.2 Slow Order Processing
Inefficient warehouse operations, lack of staff, or delays in packing and labeling orders can increase shipping times. During peak seasons like Prime Day and Black Friday, unprepared sellers often struggle to meet Amazon’s shipping deadlines.
2.3 Carrier Delays
Even if you ship on time, unreliable carriers can cause unexpected delays. Weather conditions, logistical disruptions, or holiday backlogs may prevent timely deliveries, increasing your LSR percentage.
2.4 Failure to Confirm Shipments in Seller Central
Some sellers physically ship orders but forget to confirm them in Seller Central, leading to late shipment penalties. Even if the package arrives on time, failing to update the system results in a high LSR.
3. How to Reduce Your Late Shipment Rate
Lowering your LSR requires a combination of better inventory management, streamlined processing, and reliable shipping solutions. Here are practical steps to improve your shipping performance:
3.1 Optimize Inventory Management
Keeping your stock levels in check is crucial for on-time fulfillment.
✔️ Use inventory management software like InventoryLab or Sellbrite to track stock in real time.
✔️ Set up low-stock alerts to reorder products before they run out.
✔️ Avoid selling products that are not readily available to prevent stockouts.
3.2 Speed Up Order Processing
A faster fulfillment process reduces delays and ensures timely shipments.
✔️ Automate order processing with tools like ShipStation or Orderhive.
✔️ Organize a structured pick-and-pack system to streamline fulfillment.
✔️ Hire additional staff during high-demand sales periods to keep up with order volume.
3.3 Choose Reliable Shipping Carriers
Your shipping carrier plays a huge role in your LSR performance.
✔️ Partner with carriers that offer fast and reliable delivery services.
✔️ Use Amazon’s Buy Shipping Services to comply with Amazon’s shipping requirements.
✔️ Offer multiple shipping options to prevent delays caused by carrier issues.
3.4 Confirm Shipments on Time
Failure to confirm shipments in Seller Central can lead to unnecessary late shipments.
✔️ Set automated reminders to confirm orders in Amazon’s system.
✔️ Train your team to double-check and confirm shipments before cutoff times.
✔️ Ensure tracking numbers are uploaded correctly to avoid compliance issues.
3.5 Consider Using Amazon FBA
If you struggle with on-time deliveries, Fulfillment by Amazon (FBA) might be a better option.
✔️ Amazon handles storage, packing, and shipping, ensuring orders go out on time.
✔️ FBA helps sellers maintain a perfect LSR score, improving account health.
✔️ Customers get faster shipping with Amazon Prime, leading to better satisfaction.
4. Monitoring and Preventing LSR Violations
Keeping track of your LSR and responding quickly to any performance issues is essential to avoid account suspension.
4.1 Regularly Monitor Your LSR in Seller Central
📌 Go to Seller Central > Performance > Account Health to check your LSR.
📌 Use performance reports to identify patterns of late shipments.
4.2 Take Immediate Action If LSR Rises
If you notice a spike in late shipments, take action immediately:
✔️ Identify which orders were late and why.
✔️ Adjust workflows to prevent future delays.
✔️ Address any logistics issues before they escalate.
4.3 Keep Customers Informed
If a delay occurs, clear communication can help prevent negative feedback:
✔️ Notify customers immediately if a shipment is delayed.
✔️ Offer a discount or refund to maintain customer satisfaction.
✔️ Provide accurate tracking updates so customers know when to expect their orders.
5. What to Do If Amazon Suspends Your Account Due to High LSR?
If Amazon suspends your account due to a high LSR, act quickly:
✔️ Identify the root cause – Review order reports to determine why shipments were late.
✔️ Submit a Plan of Action (POA) – Explain the issue, your corrective steps, and how you’ll prevent future violations.
✔️ Improve fulfillment processes – Implement long-term solutions to keep LSR low.
✔️ Seek professional help – If your appeal is denied, contact SuspendFix for expert reinstatement assistance.
Conclusion: Take Control of Your LSR Today
Maintaining a low Late Shipment Rate is crucial for long-term success on Amazon. By optimizing inventory, streamlining fulfillment, and choosing reliable carriers, you can prevent LSR violations and ensure a healthy seller account.
🚀 Need expert help with Amazon compliance and LSR reduction? Contact SuspendFix for a free consultation today!