Detailed explanation of Amazon store performance indicators and product selection strategies

The performance indicators of Amazon stores are directly related to the normal operation and development of the store. Sellers need to keep an eye on these metrics and make sure they comply with Amazon platform regulations. Here are a few key performance indicators:

• Order Defect Rate: This metric is composed of negative feedback, unresolved A-to-z claims, and credit card chargebacks. Negative feedback usually refers to negative reviews given by buyers; unresolved A-to-z claims refer to when the seller fails to solve the buyer’s problem through communication, and the buyer can file a claim request with Amazon; and credit card chargebacks This is a situation where the buyer applies to the bank for a chargeback due to reasons such as not receiving the goods, the goods not matching the description, or repeated deductions. Amazon requires sellers to maintain an order defect rate of less than 1%, otherwise their accounts may be suspended.

• Order Cancellation Rate: This metric mainly affects sellers who ship their own orders. Order cancellations are often caused by sellers failing to replenish inventory in time, resulting in inability to ship goods on time. A high order cancellation rate can negatively impact a seller’s reputation.

• Delayed shipment rate: This is also an important indicator for self-shipping sellers. Delayed shipment refers to the behavior of completing shipment confirmation after the estimated shipment date. This situation can result in buyer credit card chargebacks and increase order defect rates. Amazon hopes that sellers can control the delayed shipment rate below 4%.

• Effective tracking rate: For sellers who arrange their own logistics and distribution, they need to upload effective tracking information to buyers within 48 hours after shipment. The purpose of this is to allow buyers to check the status of the package at any time.

• Return Dissatisfaction Rate: When a buyer initiates a return request, the seller should handle it within 48 hours. If the seller does not handle it in a timely manner, it may lead to dissatisfied buyers and leave negative reviews.

• Customer service dissatisfaction: This involves how the seller responded to buyer inquiries and the quality of the service. Timely and accurate answers will help increase buyer satisfaction.

In addition to the above performance indicators, there are also a series of considerations in the early product selection stage:

• Price per customer: It is recommended to choose products with a unit price between US$25 and US$50. Products in this price range are more likely to be accepted by consumers, and excessively high prices may inhibit the desire to purchase.

• Seasonal considerations: Avoid selecting items that are highly seasonal, as they may make inventory management difficult. Unless you have strong inventory control capabilities, seasonal items should be treated with caution.

• Number of product variations: Try to keep the number of variations on your product to a minimum, especially for fast fashion categories like women’s clothing. Too many variations not only make management more difficult, they may also increase return rates.

• Size: Prefer smaller items to reduce shipping costs. With the adjustment of Amazon logistics fees, the cost of large and heavy goods will increase, which may affect the final selling price and sales volume.

To sum up, if Amazon stores want to develop stably in the long term, they must pay close attention to various performance indicators and reasonably select products based on their own characteristics and market demand. Only in this way can we remain invincible in the fierce market competition.