Detailed explanation of Amazon seller customer satisfaction indicators and return rate management strategies

Customer satisfaction is one of the important indicators for measuring the performance of Amazon sellers. Through the “Seller Metrics” interface, you can have a deeper understanding of the seller’s performance in terms of customer satisfaction. The Seller Metrics interface contains several performance metrics that are calculated and displayed based on fulfillment channel (fulfilled by seller and fulfilled by Amazon).

Customer satisfaction related indicators

Order defect rate

Order Defect Rate (ODR) is the percentage of orders that received negative feedback, an Amazon Marketplace Guarantee claim, or a service credit card chargeback. ODR can measure the overall performance of the store.

Cancellation rate

The cancellation rate refers to the number of orders canceled by the seller before confirming the order as a proportion of the total number of orders. The calculation formula is:
[ text{Cancellation rate} = frac{text{Number of canceled orders}}{text{Total number of orders}} ]
This metric does not include orders canceled by buyers themselves. Sellers should ensure they have the goods in stock and can ship them, and keep pre-delivery cancellations below 2.5%.

Late delivery rate

The late shipment rate is the proportion of orders confirmed after the estimated delivery date to the total number of orders. Sellers should keep their late shipment rate below 4%.

Buyer-seller contact indicators

The buyer-to-seller contact metric measures the percentage of sellers responding to buyer messages within 24 hours.

Effective tracking rate

The effective 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. At least 95% of packages must provide valid tracking numbers.

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 the buyer. This metric measures buyer satisfaction with how returns are handled.

Customer service dissatisfaction rate

Customer service dissatisfaction rate measures buyer satisfaction with responses to buyer messages provided by sellers.

On-time delivery rate

On-time delivery rate refers to the proportion of buyers receiving packages before the estimated delivery date.

Policy Violation

Policy violations refer to complaints caused by sellers that violate Amazon regulations. Amazon takes the protection of intellectual property seriously, so any violations may result in the removal of selling privileges.

Product return rate

What is product return rate?

The product return rate refers to the proportion of the number of products returned by buyers to the total sales within a certain period of time. The return rate reflects the quality of the product and the level of service.

How to check the product return rate?

Sellers can check the product return rate through the sales data page of the Amazon platform. The specific steps are:

• Log in to Amazon Seller Center and enter the sales data page;
• Select the time range you want to query from the date range drop-down menu at the top of the sales data page, and click the “Update” button;
• In the data summary column at the bottom of the sales data page, find the “Return Rate” column to view the store’s product return rate.

How to reduce product return rate?

Methods to reduce product return rates include:

• Optimize product quality and service levels;
• Optimize product description and display;
• Strengthen pre-sales and after-sales services;
• Strengthen after-sales feedback and rectification.

Through the above measures, sellers can improve customer satisfaction and store competitiveness, and reduce return rates.