10/08/2021
๐๐ก๐๐ญ ๐ข๐ฌ ๐ญ๐ก๐ ๐๐ฆ๐๐ณ๐จ๐ง ๐๐๐๐จ๐ฎ๐ง๐ญ ๐๐๐๐ฅ๐ญ๐ก ๐๐๐ ๐?
To sell on Amazon means agreeing to abide by their rules. One of them is maintaining metrics at certain levels, which is otherwise known as account health. There are various thresholds you need to meet to continue selling on Amazon; consistently falling below them can lead to a warning, account suspension or, if not rectified, account removal.
Amazon has created a dedicated page on your Seller Central account called โAccount Healthโ that displays the six most important metrics you need to focus on. Itโs not to say you can ignore other metrics, but these ones are crucial to maintaining selling privileges on Amazon. But as a nice little bonus, Amazon says theyโve removed some metrics from the Account Health page โ and theyโre seller metrics Amazon wonโt take action on.
1. ๐๐ง๐๐๐ง ๐ฟ๐๐๐๐๐ฉ ๐๐๐ฉ๐
The Order Defect Rate (ODR) measures your overall ability within the past 60 days to leave customers as happy as the A-to-z guarantee promises they will be. It covers a few areas, all of which you need to aggregate less than 1% with to have a satisfactory ODR. An order has a defect if it:
-Has negative feedback
-A successful A-to-z claim
-Credit card chargeback
2. ๐พ๐๐ฃ๐๐๐ก๐ก๐๐ฉ๐๐ค๐ฃ ๐๐๐ฉ๐
This is only for seller-fulfilled orders and measures, in 7-day timeframes, the percentage of orders cancelled by the seller. For example, if a customer cancelled a pending order, your Cancellation Rate (CR) wouldnโt be impacted. As for Amazon account health, this metric must be under 2.5%.
3. ๐๐๐ฉ๐ ๐ฟ๐๐จ๐ฅ๐๐ฉ๐๐ ๐๐๐ฉ๐
Measured over a 10-day or 30-day timeframe, the Late Dispatch Rate (LDR) refers to how many orders (as a percentage of overall orders) had their shipping confirmation posted after the expected ship date. Your LDR needs to be under 4% or you could face a warning or suspension
4. ๐๐๐ก๐๐ ๐๐ง๐๐๐ ๐๐ฃ๐ ๐๐๐ฉ๐
Again, this metric is only applicable to seller-fulfilled orders. Displayed over a 30-day period, the Valid Tracking Rate (VTR) measures the percentage of total orders that were given a valid tracking number. Keep this metric above 95% and youโre good to go.
5. ๐๐ฃ-๐๐๐ข๐ ๐ฟ๐๐ก๐๐ซ๐๐ง๐ฎ ๐๐๐ฉ๐
The On-Time Delivery Rate (OTDR) sums up, as a percentage of total orders, how many packages made it to their respective doorsteps by the estimated delivery date. This metric also only applies to seller-fulfilled orders, so be watchful in keeping it above 97%.
6. ๐๐๐ฉ๐ช๐ง๐ฃ ๐ฟ๐๐จ๐จ๐๐ฉ๐๐จ๐๐๐๐ฉ๐๐ค๐ฃ ๐๐๐ฉ๐
Last but not least, this metric has to do with how satisfied a customer was with the return experience. The Return Dissatisfaction Rate (RDR), which needs to be under 10%, can rise if you:
-Get negative feedback (Negative Return Feedback Rate),
-Donโt respond to the return request within 48 hours (Late Response Rate), or
-Incorrectly deny the return request (Invalid Rejection Rate)
7. ๐๐ฃ๐ซ๐ค๐๐๐ ๐ฟ๐๐๐๐๐ฉ ๐๐๐ฉ๐
In June 2020, Amazon introduced a new performance metric called Invoice Defect Rate. It aims to help third-party sellers monitor the invoicing experience it provides to Amazon Business customers who require invoices or receipts for tax and accounting purposes.
