Amazon Seller News: Updated Policy For Handling Time Requirements
Announced recently, Amazon is making changes to the requirements that sellers have to follow for how they estimate handling times. Starting on June 29th, 2026, these new changes will be implemented that could lead to a rise in enforcement actions against sellers. In this blog, we walk you first through changes that were made to the On Time Delivery Rate system earlier this year, then discuss the new policy coming at the end of June and how it may continue to increase enforcement actions against sellers.
OTDR Amazon Policy
Earlier this year, Amazon made updates to their On Time Delivery Rate (OTDR) policy that increased the scrutiny placed on sellers. Specifically, they set the target of a 90% on time rate based on estimated shipping and handling times before sellers would automatically have listings pulled. For products with far below a 90% rate, sellers could see larger account-wide actions.
These OTDR policy changes were aimed at giving customers a more accurate expectation of when a product would arrive by. Sellers were offered to reduce the impact of the problem by enabling automated handling time calculations, utilizing shipping settings automation, or purchasing Amazon’s OTDR protected shipping labels.
Overall, this change was received relatively poorly, with sellers complaining that it may be forcing more independent sellers off the platform, or increasing the reliance on Amazon’s first party services to compete on the platform.
Amazon Handling Time Changes
Starting at the end of June, Amazon is now making further changes to their handling requirements, meaning that sellers are now forced to accurately depict the expected delivery date. Now, instead of just punishing sellers who fall out of line, Amazon is working to actively enforce that all sellers are living up to the expectations that they set on their storefronts. While Amazon’s reason for this change is based on the idea that faster shipping estimations increase customer purchase rates, this change could even encourage delayed shipping.
The exact change is that sellers will now be required to use either Amazon’s automated handling time calculations or be monitored when entering in their own expected delivery times. For those that use automated handling time, Amazon seems to be more lenient about having delays in your expected times, whereas sellers that do not use automated handling times will be continuously monitored and potentially punished for failing to deliver products at the expected time. One of the biggest problems here is that sellers may actually be punished for delivering products early, which could mean the need to intentionally delay shipments.
It is important to note that this change does not apply to handmade, custom, or heavy/bulk items for sellers with those products.
Amazon What is the Reason For Potential Account Suspensions
While this new change may seem to reduce the ways that sellers can be non-compliant with the previously mentioned OTDR changes, sellers that fail to deliver on time even with their estimated handling times being more accurate are likely to face enforcement actions. Like with the OTDR changes, this will likely start at the product level and move to account-wide suspensions if it is a widespread issue on your account.
As with other enforcement actions on Amazon, resolving issues like this requires the completion of an Amazon Plan of Action (POA) appeal. These documents include both evidence and written sections that detail why you were suspended, what you are doing to correct that suspension, and how you plan on avoiding future actions being taken against your account.
Contact Amazon Sellers Lawyer Today!
If you are currently facing suspension as a result of poor account health issues, contact the team at Amazon Sellers Lawyer today. We are constantly monitoring changes to Amazon’s policies, and our experienced team is always adapting to the shifting landscape of e-commerce. Give us a call today at 212-256-1109 or fill out our online contact form here.
About the Author
CJ Rosenbaum, Esq.
CJ Rosenbaum is the founding partner of Amazon Sellers Lawyer. He’s been practicing law since 1995, and since 2016 his firm has focused exclusively on helping Amazon sellers deal with issues like suspensions, intellectual property disputes, and withheld funds.
CJ has written six books on Amazon seller legal issues including the Amazon Sellers’ Guide to Copyright Law. He has spoken at major industry events like the Prosper Show, Global Sources Summit, Retail Global. CJ also works with the Amazon Sellers Lawyer team to provide free content for Amazon sellers. This is available through their online blog and YouTube channel, frequently covering major Amazon updates and important topics relevant to the seller space.
Through BrandProtectionAmazon.com, the firm also supports brands in protecting their products. This gives the team the unique opportunity to learn from case wins on both sides of the fence, strengthening protection for both the sellers and brands that Rosenbaum & Segall P.C. represents.
Amazon repeatedly rejecting your Plan of Action? Amazon Sellers Lawyer handles suspension appeals and account reinstatement cases – including arbitration against Amazon when they’re withholding seller money. Contact us to discuss your situation and figure out the best path forward.