Good Day, Amazon Sellers! Have you ever noticed the term "Order Defect Rate" on your Seller Account's Inventory Page? If not, then notice it hereafter. Because they are very important factors that affect your Seller Account's Health. Let's see in detail what it is.
What is Order Defect Rate?
Your ability to provide a good customer experience can be measured by your order defect rate (ODR). ODR is the percentage of orders with one or more indicators of poor customer service within a period of 60 days.
It is Amazon's policy to require sellers to maintain an ODR of under 1% so as to meet customer expectations. You may lose your selling privileges if your order defect rate exceeds 1%, including suspension of seller-fulfilled offers.
The three components of ODR are:
-
Negative Feedback Rate
-
A to z Guarantee Claim Rate
-
Credit Card Chargeback Rate
Negative Feedback Rate:
Negative Feedback Rate is a measure of the number of negative feedback orders compared to the number of orders during the relevant period. When computing the rate, we look at the date of the order. Buyers may not see the Negative Feedback Rate as it is calculated based on when the feedback was received instead of when the order was placed.
A to Z Guarantee Claim Rate:
Based on the number of orders filled in a 60-day period, Amazon computes the A to Z Guarantee Claim Rate (as a percentage). Go to Manage A-Z Claims to manage and take action on claims.
As per Amazon's measures, your ODR is affected by the following types of claims:
-
All claims granted by Amazon are deemed your fault by Amazon.
-
Claims for which you refunded the buyer after the claim was filed.
-
Claims for which you or Amazon canceled the order.
-
Claims that are pending a decision on appeal.
Credit Card Chargeback rate:
The Credit Card Chargeback Rate (reflected as a percentage) is defined as the number of orders that have been charged back by credit cards divided by the number of orders in the given period. When computing the rate, we consider the date of the order (not the date on which the service chargeback was received).
As with the A-to-Z Guarantee claim, a credit card chargeback is processed and decided by the credit card issuer, not Amazon.
What will happen if your ODR reaches 1%?
Hey Guys! Just be very cautious. Because, if your ODR reaches 1% or more, you'll have to face serious consequences, which can be a great catastrophe!! I'll list some of them.
-
You may lose your BUY BOX for any product you're responsible for shipping as Amazon suspects their reputation will be at risk.
-
Amazon will hold your payments for refunding your customers and then suspend your account. In some cases, it may terminate your account.
-
No matter how successful you are on Amazon selling when your ODR reaches 1%, Amazon will suspend you.
-
After your account's privileges have been suspended, you can come back with an action plan within 17 days.
-
If your ODR exceeds 1%, and it reaches up to 3%, Amazon will permanently suspend your account without giving any grounds for the appeal process.
7 Quick Tips To Maintain ODR:
-
Make sure you reply to all the negative feedback and A to Z Claims. This will leave a positive impression on the customers.
-
The most crucial time for Amazon sellers is the "Holiday Season". January is the month, most Seller Accounts have been suspended because of high ODR. This is due to the late shipments.
-
Keep an eye on your Amazon listing to maintain your ODR under 1%.
-
Review your Amazon listing periodically and make sure they are accurate.
-
Sell high-quality products to maintain your reputation and avoid negative feedback.
-
Pack the items accordingly, so that your product is not damaged while shipping.
-
Just provide a proper tracking number and URL to your customers for each order.
So, Don't ignore ODR! Try to follow the above-mentioned steps and maintain your ODR below 1%. You can also prefer using Amazon FBA.
If you're struggling to find great products to sell on Amazon, reach out to Amz Online Arbitrage, the No.1 platform for the best OA Leads. You can find the most profitable online arbitrage deals here in all categories.
For more helpful tips and resources on Amazon selling and online arbitrage, check out amz blog!