Overview

Amazon enforces a performance metric called the Invoice Defect Rate (IDR) that applies specifically to sellers fulfilling Amazon Business orders. The metric tracks whether sellers deliver compliant invoices within one business day of shipment confirmation, and breaching the 5% defect ceiling can trigger account health consequences. As Amazon's B2B marketplace continues to grow, sellers who serve business buyers need to understand how IDR works and how to stay compliant.

How the Invoice Defect Rate Works

IDR measures the percentage of Amazon Business orders where a seller fails to provide a downloadable tax invoice or receipt within one business day of confirming shipment. Amazon introduced the metric in 2020 to ensure business buyers receive the documentation they need for expense tracking, tax reporting, and procurement compliance.

Unlike standard consumer transactions that require only a basic receipt, Amazon Business customers — corporations, schools, hospitals, government agencies, and small businesses — rely on properly formatted invoices for their internal accounting. When sellers miss the invoicing window, it creates friction for buyers and undermines confidence in the platform.

The 5% Compliance Threshold

Sellers must keep their IDR below 5%, which means at least 95% of Amazon Business orders need to receive compliant invoices on time. This metric feeds into Amazon's broader account health monitoring system.

While Amazon has not published a detailed penalty schedule, the potential consequences of sustained IDR violations include account health reviews, restrictions on B2B features, and reduced visibility to business buyers. Sellers who consistently exceed the threshold risk losing access to a customer segment known for larger average order values and higher purchase frequency than consumer shoppers.

Why IDR Matters for Revenue

Strong IDR performance is not just a compliance exercise — it directly supports revenue retention. Business buyers place bigger and more frequent orders, and they gravitate toward sellers who deliver smooth purchasing experiences. Reliable invoicing reduces customer service inquiries about missing documentation and builds the kind of operational trust that drives repeat business.

Access to certain Amazon B2B programs and features may also depend on demonstrated IDR compliance, making this metric a gateway to expanded selling opportunities rather than a mere administrative requirement.