The on-time shipping criteria is being evaluate based on missing a processing time (which is not a required field) not actual shipment data.
Processing time frame is a criteria for star seller. You are required to ship items within your processing time frame. You have 1 to 3 days so you need to ship within that time frame. Items need to be in transit by the end of the 3rd day.
If you ship before the processing time frame kicks in that can be one issue. If you ship after the 3rd day, you did not meet your processing time frame and therefore it will not meet star seller criteria for shipping on time. Actually it doesn't meet the service level standards Etsy has which predates the star seller. We are required to ship within our processing time frame.
Processing time frame is a criteria for star seller. You are required to ship items within your processing time frame. You have 1 to 3 days so you need to ship within that time frame. Items need to be in transit by the end of the 3rd day.
If you ship before the processing time frame kicks in that can be one issue. If you ship after the 3rd day, you did not meet your processing time frame and therefore it will not meet star seller criteria for shipping on time. Actually it doesn't meet the service level standards Etsy has which predates the star seller. We are required to ship within our processing time frame.