Customer satisfaction is one of the most important indicators of Amazon seller performance. The “Seller Metrics” interface can provide a deeper understanding of sellers’ performance in terms of customer satisfaction. The “Seller Metrics” interface contains the following performance indicators, which are calculated and displayed based on the delivery channel (seller-delivered and Amazon-delivered).
1. Order Defect Rate
The Order Defect Rate (ODR) refers to the percentage of orders that receive negative feedback, Amazon Marketplace Transaction Guarantee claims, or service credit card chargebacks. Through it, sellers can measure the overall performance of the store.
2. Cancellation Rate
The cancellation rate is the proportion of orders canceled by the seller before the order is confirmed to the total number of orders. The calculation formula is as follows:
Cancellation Rate = (Number of Cancelled Orders) / (Total Number of Orders)
This indicator does not include orders canceled by buyers themselves. When a buyer places an order, it is important for the seller to ensure that the goods are available and can be shipped. In response to the buyer’s request to cancel an order before delivery, the seller may need to make changes to the inventory. Sellers should try to keep pre-delivery cancellations below 2.5%.
3. Late Shipment Rate
The late shipment rate is the ratio of the number of orders confirmed after the estimated delivery date to the total number of orders.
It is very important to confirm the shipment of an order before the estimated delivery date so that buyers can see the status of the shipped order online. Delayed confirmation of shipped orders may lead to claims, negative feedback, or an increase in the number of contacts with buyers, and have a negative impact on the buyer experience. Sellers should find ways to maintain the late shipment rate below 4%.
4. Buyer-Seller Contact Metrics
Buyer-Seller Contact Metrics measure the percentage of messages initiated by sellers that respond to buyers within 24 hours.
5. Valid Tracking Rate
The valid tracking rate refers to the ratio of the number of packages with valid tracking information to the total number of packages confirmed to have been shipped. A tracking code is considered valid only if it has at least one carrier scan record.
For all packages shipped, at least 95% of the packages are required to provide valid tracking codes.
6. Return Dissatisfaction Rate
The return dissatisfaction rate is the percentage of valid return requests that were not responded to within 48 hours, were incorrectly rejected, or received negative feedback from buyers. This metric is used to measure buyer satisfaction with the way returns are handled.
7. Customer Service Dissatisfaction Rate
The customer service dissatisfaction rate is used to measure buyer satisfaction with the buyer message responses provided by sellers. When a seller responds to a buyer through the buyer-seller messaging service, Amazon will provide a survey below the buyer’s response: “Did this solve your problem?” Buyers can choose “yes” or “no”. The customer service dissatisfaction rate is the percentage of “no” responses divided by the total number of responses.
8. On-time delivery rate
The on-time delivery rate is the percentage of packages received by buyers before the estimated delivery date. This value is based on confirmed tracking information.
9. Policy Violation
Amazon policies are the most important content for sellers. Generally speaking, if you sell counterfeit goods or copycat sales on Amazon and are complained by competitors, the “complaint established” indicator will be affected. Once the number of complaints reaches a certain level, Amazon will directly remove the seller’s sales privileges, because Amazon attaches great importance to the protection of intellectual property rights.
After understanding the above indicators, sellers should always pay attention. When a yellow warning appears on the account, these indicators should be optimized and controlled in a timely manner. When a red sign appears, it means that the seller’s performance does not meet Amazon’s requirements. If the seller continues to maintain this performance level, the sales privileges may be deactivated or cancelled.