Detailed explanation of Amazon’s operational assessment standards and return policy
As the world’s leading e-commerce platform, Amazon’s operating strategies and return policies have attracted much attention. This article will comprehensively discuss the KPI performance evaluation standards of Amazon operating personnel and Amazon’s return policy to help sellers better understand and respond.
1. Amazon Operation KPI Performance Appraisal
1. Sales
The sales targets of operating personnel need to be reasonably allocated according to the company’s annual plan. Taking into account seasonal fluctuations, the targets in peak seasons should be appropriately increased. For example, if the annual target is 100 million yuan, the average monthly target is 8.3333 million yuan; the recommended assessment weight is 30%.
2. Store performance
Store performance indicators directly affect the store’s ability to continue operating, including order late delivery rate (<4%), order cancellation rate (<2.5%), effective order tracking rate (>95%), and on-time delivery of orders. fulfillment rate (>97%), order defect rate (<1%), and order return dissatisfaction rate (<10%). It is recommended that the evaluation weight of store performance is 20%.
3. Advertising conversion rate
The advertising conversion rate reflects the enterprise’s input-output ratio and needs to be set according to the nature of the product and industry standards. The assessment weight is recommended to be 10%. Over-reliance on advertising and neglect of conversion rates can lead to increased costs and impact overall profits.
4. Channel profit
Channel profit refers to the income after sales revenue minus variable costs. Variable costs include but are not limited to product costs, logistics fees, platform fees, etc. The assessment weight of this part is recommended to be 30%, and operators are encouraged to pay attention to cost control.
5. Inventory turnover rate
The inventory turnover rate reflects the capital utilization rate. It is recommended to set goals based on product characteristics and industry levels. The assessment weight is recommended to be 10%.
2. Overview of Amazon’s return policy
Return qualifications and procedures
Amazon has clear regulations on return eligibility, and some items such as groceries and hazardous materials cannot be returned. Generally, new orders or unused items can be returned free of charge within 30 days of purchase. Return requests must be submitted through the order page, and the reason and method of return must be selected.
Third-party seller return processing
For third-party sellers, the return policy is basically the same, but options such as a return address in the United States and a prepaid label are required. Depending on the value of the item, returns require insured shipping or trackable express delivery.
Return rate standards
Amazon stipulates that merchant return rates must not exceed 4%, otherwise the account ranking may be affected or even banned. Common reasons for returns include inconsistent product descriptions, wrong sizes, unclear operating instructions, etc.
Set return address
Sellers can set multiple return addresses based on specific criteria through the backend to improve return efficiency. Specific steps include entering the account information page, selecting return address management, adding new rules, etc.
To sum up, Amazon not only has a strict KPI assessment system at the operational level, but also strives to improve the return mechanism, aiming to provide users with a better shopping experience while protecting the interests of merchants.