Over the past few years, Amazon has made a few improvements in monitoring your seller account’s health. To view your account health, log in to the Amazon Seller Central homepage, and under the “Performance” tab, click on “Account Health.”
Currently, there are six primary metrics on which your Amazon Seller Account health will be measured on. Amazon does not take it lightly if your Seller Account health falls below their standards. It can involve an account review and submission of statements about how you will avoid the issues in the future.
The three most important metrics to maintain are:
- Order defect rate: < 1%
- Pre-fulfillment cancel rate: < 2.5%
- Late dispatch rate: < 4%
Some of the possible resolutions are:
- Active: Your Amazon Seller Account can sell on Amazon, and payments may be paid out according to schedule.
- Under Review: Your Amazon Seller Account can still sell on Amazon but is currently under review of Amazon, and payments are temporarily on hold until the review is completed.
- Suspended: Your Amazon Seller Account cannot sell on Amazon, and payments are temporarily on hold.
Amazon Seller Account Health Metrics
Order Defect Rate
The Order Defect Rate (ODR) is a crucial measure of your ability to render a good customer experience. This includes all orders with one or more defects represented as a percentage of your total orders during a given 60-day period.
A specific order is tagged with defects if it results in negative feedback, a credit card chargeback, or an A-to-Z Guarantee claim that is not denied.
In Amazon’s policy, sellers should maintain an ODR under 1% to continue selling on Amazon. An ODR higher than 1% may result in account deactivation.
The Cancellation Rate (CR) is all seller-canceled orders represented as a percentage of total orders during a 7-day time period. This only applies to seller-fulfilled orders.
In Amazon’s policy, sellers should maintain a CR under 2.5% to continue selling on Amazon. A CR higher than 2.5% may result in account deactivation.
Late Dispatch Rate
The Late Dispatch Rate is represented as a percentage of total orders over both a 10-day or 30-day period. This only applies to seller-fulfilled orders.
It is vital to confirm the shipments of orders within the expected ship date. This helps customers see the status of their shipped orders online. Late shipments can lead to increased claims, negative feedback, and a negative impact on customer satisfaction.
In Amazon’s policy, sellers should maintain a Late Dispatch Rate under 4% to sell on Amazon. A Late Dispatch Rate higher than 4% may result in account deactivation.
Valid Tracking Rate
The Valid Tracking Rate (VTR) includes all shipments with a valid tracking number represented as a percentage of total shipments during a 30-day time period. This only applies to self-fulfilled orders.
Amazon customers always depend on tracking numbers to find out where their orders are and when they can expect them to arrive.
On-Time Delivery Rate
The On-Time Delivery Rate (OTDR) includes all shipments delivered by their estimated delivery date represented as a percentage of total tracked shipments. This only applies to self-fulfilled orders.
Amazon highly recommended that sellers maintain an OTDR greater than 97% to provide a good customer experience.
Return Dissatisfaction Rate
The Return Dissatisfaction Rate (RDR) measures the seller’s customer satisfaction with their return experience.
It is in Amazon’s policy that sellers should maintain an RDR rate under 10%. Compared to OTDR, there is no penalty for not meeting this metric.