Do you know that you may control the health of your Amazon account? Have you ever attempted to perform an Amazon seller account health che...
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Do you know
that you may control the health of your Amazon account? Have you ever attempted
to perform an Amazon seller account health check?
It's more
crucial than ever to protect the health of your Amazon account because of the
regular changes that Seller Central experiences.
Let's
simplify everything today and talk about how to maintain the health of your
Amazon account.
How can I
obtain the health metric for my Amazon account?
Find out the
health performance of your account:
· Go to your seller central homepage.
· Under Performance, click Account
health.
Introduction
to Amazon Account Health Rating
You can keep
an eye on the health of your Amazon account in Seller Central with the help of
the Amazon Account Health Rating (AHR) tool. It depends on how closely you
follow Amazon's guidelines for selling. It takes into account a few things,
such as unsolved policy infractions on your account within a specific time
frame.
For now,
only professional sellers can access this page.
It is clear
that Amazon desires that its merchants uphold appropriate account health in
compliance with guidelines. You can now monitor the health of your account with
a few tweaks from Amazon, and the retail behemoth promises that more
improvements will be made to the policies.
As stated
by Amazon:
· It is imperative that you uphold a
'Good' account health rating and promptly resolve any policy infractions.
· Should your AHR be classified as
"Critical" or "At Risk," your account can be terminated.
You must
follow by Amazon's policies, agreements, and other applicable guidelines to
prevent such problems. In addition, you have six crucial account indicators to
keep an eye on, three of which are critical.
The
following are the top three measures along with their benchmarks:
· Order defect rate < 1%
· (Pre-fulfillment) cancel rate <
2.5%
· Late dispatch rate < 4%
The
Status of Your Seller Account
Amazon
checks sellers' account data to make sure they're providing a great customer
experience. If merchants don't meet Amazon's goals, Amazon takes action.
One of the
following would be the current state of your Amazon account.
Active: You are able to sell things on
Amazon, and you will receive payments (money) on time.
Under
Review: You will
have the ability to sell on Amazon. Nevertheless, money will be deducted from
your account until Amazon reviews it.
Suspended: Your Amazon selling account is
suspended and cannot be used to make sales. Additionally, money is temporarily
withheld.
Metrics
for Amazon Account Health
As
previously indicated, Amazon sellers ought to concentrate on six crucial areas
for development. Now let's examine the specifics.
Order
Defects Rate
A positive
customer experience is measured by the Amazon Order Defect Rate (ODR). As a
percentage of all orders placed during the previous 60 days, this comprises one
or more faulty orders.
An order is
flawed if it causes:
· Negative feedback
· Credit card chargeback
· A successful A-to-Z claim
According to
Amazon’s policies, sellers should maintain an ODR under 1% to sell on Amazon.
If their ODR is above 1%, it may result in account deactivation.
Rate of
Cancellations
The
percentage of orders canceled by sellers for orders that are fulfilled by
sellers is known as the Cancellation Rate (CR). It is measured over a specified
seven-day period.
All order
cancellations that the seller initiates are included in this measure. Your
cancellation rate won't be impacted if a customer cancels an order that is
still pending.
Sellers are
required by Amazon rules to keep their CR below 2.5% in order to sell on the
platform. Account termination may occur if the cancellation rate exceeds 2.5
percent.
Rate of
Late Dispatch
The number
of orders whose shipping confirmations are posted after the scheduled delivery
date is indicated by the Late Dispatch Rate (LDR). Both a 10-day and 30-day
period's total orders are used to calculate the LDR as a percentage. This
measure is for orders that are completed by sellers.
For
customers to be able to view the status of their sent orders, Amazon sellers
must confirm the order shipment by the anticipated shipping date. Orders that
are confirmed after the shipping date may result in a bad customer experience,
a rise in customer contacts, negative reviews, and/or claims.
Sellers must
keep their late dispatch rate below 4% in order to sell on Amazon, per Amazon
rules. Anything over this cap could result in an Amazon warning or the deletion
of your account.
On-Time
Delivery Rate
All
shipments that are delivered by the estimated delivery date are measured by the
On-Time Delivery Rate (OTDR). It is computed as a proportion of all shipments
that have been traced.
Only orders
fulfilled by the seller are included in this measure.
Amazon
recommends that in order to deliver a positive customer experience, vendors
keep their OTDR over 97%. Currently, merchants who are unable to fulfill this
condition will not be penalized.
Valid Tracking
Rate
The
percentage of all shipments with a valid tracking number is known as the Valid
Tracking Rate, or VTR. This is calculated over a specified thirty-day window.
Only orders fulfilled by the seller are included in this measure.
Rate of
Return Dissatisfaction
Your
clients' level of happiness with their return experience is gauged by the
Return Dissatisfaction Rate (RDR). A negative return experience is deemed to
have occurred if:
You don't
reply to a return request within 48 hours (late response rate), you obtain
unfavorable feedback from customers (negative return feedback rate), or a
return request is wrongly rejected (invalid rejection rate).
All negative
return requests expressed as a proportion of total return requests determine
your RDR. Sellers are advised by Amazon to keep their RDR below 10%.
Rate of
Invoice Defects
Amazon
included the Invoice Defect Rate (IDR) in their account health metrics in June
2020. This metric's primary goal is to assist third-party sellers in monitoring
the invoicing services they offer to Amazon Business clients. For accounting
and tax purposes, these clients require tax invoices or receipts.
The
percentage of orders placed by Amazon business customers for which you haven't
sent a digital tax receipt (or invoice) within a day of the shipment
confirmation is known as the Amazon IDR. This must adhere to the billing
guidelines set forth by Amazon Business.
Final
Thoughts
As you are
aware, scaling on the market requires a thorough evaluation of your Amazon
account. Regularly performing an account health assessment helps you stay aware
of any problems or weaknesses with your listing.
Read More:
Amazon Compliance Documents: Important Information for Sellers
How To Increase Conversions in Several Marketplaces by Providing Quick Shipment
E-commerce SEO Essentials: Optimizing for Online Retail Success
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