Detailed explanation of key indicators and optimization strategies for Amazon seller accounts

As one of the world’s largest e-commerce platforms, Amazon has strict requirements for various indicators of seller accounts. These requirements are not only to maintain the good reputation of the platform, but also to ensure that buyers have a high-quality shopping experience. Below we will discuss in detail several core indicators and their calculation rules that Amazon sellers need to focus on.

Order Defect Rate (ODR)

The order defect rate refers to the negative reviews (Negative Feedback), Amazon A-to-Z Guarantee claim, and Service Credit Card Chargeback generated by the seller within the relevant time period. The ratio of disputed orders to the total number of orders. Amazon regulations require sellers to keep their order defect rate below 1%. This indicator directly affects the status of the seller’s account. High ODR may lead to the suspension of sales permissions.

• Calculation method: Order defect rate = total number of order defects generated during the relevant time period ÷ total number of orders × 100%

• Influencing factors: Mainly affected by negative reviews and disputes. Customers can evaluate the product within 90 days after receiving the package. If they are not satisfied, they may be given a one or two star rating. Sellers should request customers to remove negative reviews within 60 days to avoid being included in ODR.

  In the early stages of a product being put on the shelves, because there are few reviews, a single negative review can cause the indicator to go red, thus affecting sales. Sellers need to make more efforts to improve the indicator. As the order volume increases and positive reviews accumulate, the pressure on the indicators will be reduced accordingly.

Cancellation Rate before delivery (Cancellation Rate)

The pre-delivery cancellation rate refers to the proportion of orders that sellers proactively cancel due to insufficient inventory or other reasons before confirming delivery to the total number of orders. Amazon recommends this ratio be less than 2.5%.

• Calculation formula: Cancellation rate before delivery = canceled orders ÷ total number of orders × 100%

  Improper inventory management can lead to high cancellation rates, which can be detrimental to seller account health and profits. Therefore, it is crucial to regularly check inventory levels and promptly replenish or remove out-of-stock items.

  In addition, cases where a customer placed an order by mistake and was manually canceled by the seller are also included in this indicator. It is recommended that customers be allowed to cancel orders on their own to avoid unnecessary impacts; if the cancellation rate exceeds the standard due to special circumstances, you can explain the specific situation to Amazon and seek a solution.

Late Shipment Rate

The delivery delay rate refers to the proportion of sellers who arrange delivery of goods after the promised time due to their own reasons. Amazon requires this figure to remain below 4%.

• Calculation formula: Shipping delay rate = late orders ÷ total number of orders × 100%

  The handling time (Handling Time) entered by the seller when creating the product listing determines whether the shipment is considered delayed. If not specified, the default is two days. Delayed shipments not only affect customer satisfaction, but may also lead to complaints or even order cancellations, thereby damaging the seller’s reputation. Therefore, it is very important to ensure on-time delivery; in case of special circumstances, you should communicate with customers in advance to strive for understanding.

To sum up, whether it is pre-sales, sales or after-sales services, sellers should be customer-centric and improve customer experience by continuously optimizing the above indicators, thereby promoting long-term and healthy business development.