Amazon has lifted its on-time shipment requirement for Vendors to 95%, but the real change lies around compliance…
Effective early 2026, Amazon has announced an update to its Vendor supply policies, increasing the on-time shipment threshold from 90% to 95%.
But actually?
Our experts see the more meaningful shift sitting a little further behind the scenes, with Amazon also saying they’ll now judge compliance based primarily on your Advance Shipment Notifications (ASNs), not its own internal signals.
And that change is one sure to quickly expose any weaknesses in your processes, data accuracy or operational speeds.
What’s changing
From January 19th 2026 (for reporting) and February 25th 2026 (for charging):
- The on-time shipment requirement increases from 90% to 95%.
- Amazon will assess performance using ASN data.
- Two chargeback types are being merged:
- Purchase order not on time
- And PRO / BOL mismatch.
- And the non-compliance chargeback remains at 3% of the purchase cost of goods
Also, how “on time” is defined will now depend on your freight type:
- WePay (Collect): will be measured by freight-ready date (freight must be ready and picked up within the ship window).
- Prepaid: will be measured by the scheduled arrival time (appointments need to fall within the PO delivery window).
Why it matters
This change fundamentally shifts accountability onto Vendors, making your own systems the source of truth.
And if your dates are wrong, late or inconsistent, you’re risking Amazon assuming non-compliance – and charging accordingly.
This raises the bar across the board, covering everything from internal lead times, ASN accuracy and EDI reliability to the performance of your carriers and the responsiveness of your warehouse.
After all, at 95%, there’s far less margin for error, and far more need to make agile decisions fast.
Where you could be most exposed
The biggest risks we’re seeing include:
- ASNs submitted late or with inaccurate dates.
- Slow internal processing between PO receipt and warehouse action.
- Prepaid shipments using carriers that struggle with slot availability.
- Delays in routing requests for WePay Vendors.
- EDI setups that aren’t fully aligned with operational reality.
What you should do now
It’s time to tighten the basics:
- Treat ASN accuracy as non-negotiable.
- Review your lead times and internal handoffs to remove any lag.
- Audit the performance of your carriers, not just their cost.
- Submit routing requests (for WePay) immediately.
- Audit your EDI setups, making sure dates, documents and flows are accurate end to end
Most importantly?
And if you can’t ship on time?
Cancel early. As long as cancellation happens within five days of the shipping window opening, there’s no charge, while shipping late almost always costs more.
Key dates for your diary
- January 19 – February 24 2026: Defects reported for visibility only
- From February 25 2026: Defects invoiced and chargebacks applied
The Bottom Line
Vendors need to see this as more of a strategic shift than a tougher target, because adjusting will require accounts to run faster, cleaner and with strong data discipline.
Those with robust ASN processes and aligned operations? They’ll be the real winners, while those without might find they feel the pinch quite quickly.
If you need support to review your Vendor ops, EDI setup or chargeback exposure ahead of these changes, our expert team is here to help – click here to book a call today.