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By Vanessa Hung · September 8, 2025 · Curated by George's Blog

Amazon tightens the FBM leash: 90% OTDR is now the baseline

Amazon is introducing a new On-Time Delivery Rate (OTDR) policy that fundamentally changes what it takes to sell FBM successfully in the UK marketplace. Starting September 16, 2025, sellers will need to maintain a minimum 90% OTDR on all Fulfilled by Merchant (FBM) orders.

At first glance, this sounds like a basic operational KPI. In reality, it signals Amazon’s growing preference for speed and reliability over sheer selection.

Amazon’s rollout plan leaves little room for error:

➡️ Sept 16, 2025 → OTDR metric goes live in your Account Health Dashboard

➡️ Oct 16, 2025 → Warning notices begin for sellers below target (no penalties yet)

➡️ Jan 19, 2026 → Standard UK shipping templates tighten: max transit time drops from 5 days to 4 days

➡️ Feb 2, 2026 → Enforcement begins: repeated underperformance could pause listings or restrict FBM privileges

In this case, Amazon isn’t just measuring late deliveries, it’s changing the definition of operational excellence.

The OTDR metric tracks whether orders arrive by the promised “Deliver by” date, and missed promises no longer just frustrate customers, they now directly impact your visibility and eligibility to sell FBM.

To stay compliant, Amazon is also pushing sellers toward automation tools like Shipping Settings Automation (SSA), Buy Shipping, and Automated Handling Times, designed to reduce human error and tighten delivery promises.

So this isn’t only about penalties. It’s about reshaping FBM economics:

• Sellers relying on slower carriers or outdated transit estimates will face higher risks of deactivation.

• With fewer days allowed for delivery, inventory positioning becomes critical. The closer your stock is to the customer, the more competitive your listing will be.

• Amazon is reinforcing buyer trust, but that comes at a cost: FBM is starting to look less flexible and more like FBA-lite.

How to prepare

If you sell FBM, now is the time to rethink your logistics playbook:

✅ Audit your carrier performance and adjust promised delivery dates accordingly.

✅ Implement SSA and Buy Shipping to align your handling times with Amazon’s data.

✅ Consider whether moving key SKUs into FBA or regional 3PLs can help meet delivery speed requirements.

Amazon’s message is clear: the bar for FBM sellers is rising, and fast. Meeting the 90% OTDR threshold isn’t just about avoiding penalties. It’s about staying competitive in a marketplace where delivery speed increasingly drives visibility and conversion.

#AmazonUK #FBM #EcommerceStrategy #AccountHealth

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