Are you aware that you may control the status of your Amazon account? Have you ever attempted performing a seller account health check on ...
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Are you
aware that you may control the status of your Amazon account? Have you ever
attempted performing a seller account health check on Amazon?
Protecting
the health of your Amazon account is more crucial than ever, especially with
all the changes that Seller Central is always through.
Let's
dissect what it takes to maintain the health of your Amazon account today.
How can I
obtain the health metric for my Amazon account?
For account
health and performance information:
· Visit the homepage of your seller
central.
· Click Account health under
Performance.
Introduction
to the Amazon Account Health Rating
You may
check the status of your Amazon account in Seller Central using the Amazon
Account Health Rating (AHR) tool. It depends on how well you follow Amazon's
selling guidelines. It takes into account specific things like unsolved policy
infractions on your account over a set period of time.
Currently,
only seasoned sellers have access to this page.
It is clear
that Amazon wants its sellers to have their accounts in good standing and in
compliance with guidelines. Amazon made a few adjustments to how you may check
the status of your account, and the retail behemoth promises that the policies
will continue to be improved.
Apparently
from Amazon:
· You must keep your account's health
rating at "Good" and quickly resolve any policy breaches.
· Your account may be deleted if your
AHR is "Critical" or "At Risk."
You must
follow by Amazon's policies, agreements, and any other applicable rules in
order to prevent such problems. In addition, you must keep track of six crucial
account indicators, of which three are of the utmost significance.
Following
are the top three measures and their respective benchmarks:
· 1.0% order defect rate
· Cancellation rate (pre-fulfillment)
of 2.5%
· 4% lateness dispatch rate
Status of
your seller account
Amazon
examines sellers' account metrics to ensure exceptional customer service and
responds if they do not meet Amazon's standards.
You would be
in one of the following account statuses on Amazon.
Active: You
may sell on Amazon, and you will receive payments (funds) according to the
regular timetable.
You will
have the option to sell on Amazon. But money will be temporarily held back as
Amazon examines your account.
Your Amazon
selling account has been suspended, therefore you cannot make any sales. In
addition, money is being temporarily withheld.
Account
health metrics on Amazon
Amazon
sellers should concentrate on six crucial areas of development, as was
previously noted. Now let's discuss the specifics.
Rate of
order defects
The Amazon Order
Defect Rate (ODR) gauges how well you are able to satisfy customers. Within the
last 60 days, this includes one or more defect orders as a percentage of all
orders.
· A Mistake in an order is one that:
· Negative comments
· Chargeback on a credit card
· An effective A-to-Z claim
To sell on
Amazon, a seller must keep their ODR below 1%, per Amazon's regulations. If
their ODR is higher than 1%, their account can be deactivated.
Rate of
Cancellations
The
Cancellation Rate (CR) is the proportion of orders that are canceled by sellers
for orders that are fulfilled by sellers. It is measured over a specific 7-day
span.
This metric
includes all cancellations of orders that the vendor has started. Your
cancellation rate won't be harmed if a consumer cancels an order that is still
being processed.
To sell on
Amazon, a seller must keep their CR below 2.5%, in accordance with Amazon's
regulation. Account termination may occur if the cancellation rate exceeds 2.5
percent.
Rate of
Late Dispatch
The number
of orders with shipment confirmations submitted after the anticipated ship date
is indicated by the Late Dispatch Rate (LDR). The LDR is shown as a percentage
of all orders over the previous 10 and 30 days. For orders that the seller
filled, this measure is used.
By the
anticipated shipping date, Amazon sellers must confirm the order shipment in
order for buyers to view the status of their sent orders. Late confirmation of
orders (beyond the shipping date) may result in more claims, customer contacts,
unfavorable reviews, or a bad customer experience.
According to
Amazon's rules, in order to sell on Amazon, a seller must keep their late
shipment rate under 4%. Anything beyond this limit can lead to an Amazon
warning or account deactivation.
Rate of
On-Time Delivery
The On-Time
Delivery Rate (OTDR) gauges the proportion of shipments that arrive on time. As
a percentage of all tracked shipments, it is calculated.
This metric
only pertains to orders that the merchant fills.
Amazon
advises vendors to keep their OTDR above 97% in order to deliver a positive
customer experience. If sellers are unable to comply with this rule right now,
there is no penalty.
Adequate
Tracking Rate
The
percentage of all shipments with valid tracking numbers is measured by the
Valid Tracking Rate (VTR). Over a predetermined 30-day period, this is
monitored. This metric only pertains to orders that the merchant fills.
Rate of
Return Dissatisfaction
Your
clients' pleasure with their return experience is gauged by the Return
Dissatisfaction Rate (RDR). The return experience is deemed unfavorable if:
You
experience a negative return feedback rate (negative buyer feedback),
If your late
response rate is greater than 48 hours to a return request,
The
rejection of a return request was made in error (invalid rejection rate).
Your RDR is
calculated as the percentage of all negative return requests to all return
requests. Amazon advises vendors to keep their RDR under 10%.
Billing
Error Rate
Amazon
debuted the Invoice Defect Rate (IDR) as a component of account health
indicators in June 2020. This metric's main objective is to assist third-party
sellers in monitoring the invoicing service they offer to Amazon Business
clients. For accounting and tax purposes, these clients require tax invoices or
receipts.
The Amazon
IDR is the percentage of orders from Amazon business customers for which you
did not provide a digital tax receipt (or invoice) one business day following
shipment confirmation. This must comply with Amazon Business's billing
guidelines.
Final
Reflections
As you are
aware, scaling on the market requires a thorough examination of your Amazon
account. You may stay updated about the problems and vulnerabilities with your
listings by performing regular account health checks.
Read More:
A Comprehensive Guide to Enhancing Your Amazon Order Defect Rate (ODR)
How to Maintain Amazon Seller Feedback in 2023:
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