Now that you have your own Amazon store and you are ready to conquer the world, it’s time to understand how to do so. Yes, marketing, digital, Amazon product launch and other services will help you, but before that you need to be able to maintain your account on Amazon! As you have probably guessed, not everyone keeps their accounts, and that’s why you need to learn the ropes before your colossal plans and strategies.
If you don’t want to be brought to heel by Amazon, you need to understand its logic and the way it estimates its sellers. In general, this is handled with the help of certain metrics that exist in your store. If you go to your Account Health section, you will see your recent performance and how you’re estimated based on different factors set up by the platform. In other words, these metrics illustrate the real adherence of your seller account to the targets and standards of Amazon!
Check Your Account Health Regularly
Dancing to the tune of Amazon is not the best thing to do. That’s why you need to check your metrics regularly to stay away from problems and conflicts with Amazon, they are superfluous…
What’s more, if you inspect your account at least once a day, you will pinpoint problems that are easy to solve, and therefore, circumvent all those possible situations when you can fall out with Amazon!
Let’s Start With Metrics!
ODR is the metric of the metrics, because it identifies how you perform and how you provide customer service at the same time! This metric includes:
- Negative feedback
- An A-to-z Guarantee claim that is not denied
- Credit card chargeback
The target for this metric is 1%. Amazon expects you to maintain an ODR that’s under 1% in order to preserve your selling privileges on the platform. If the metrics go beyond the mentioned limit, you risk losing your Amazon account.
The Cancellation Rate (CR) is all about YOU cancelling your orders! It includes all the order cancellations initiated by the seller, which means that cancelations that happen because of the customer do not affect this metric. The metrics themselves are represented as a percentage of total orders during a 7-day time period.
And again, you should maintain this policy as good as you can. The frontier starts at 2.5%, which means that a CR above 2.5% will show you the way to Amazon account suspensions. The secret to success on Amazon is not really a secret, you just have to painstakingly study Amazon’s policies, and of course, follow them!
Late Shipment Rate
According to the platform, late shipment rate comprises “orders with a ship confirmation that is completed after the expected ship date.” In the Account Health of your Amazon store, this metric stands for the percentage of total orders over both a 10-day or 30-day period.
The target for this 4%, having your LSR higher than that will cause the all-famous consequences. This is what this metric includes:
- Increased A-to-z Guarantee claims
- Negative feedback
- Customer contacts
- Negative customer experience
Valid Tracking Rate
First of all, let’s understand why Amazon customers need tracking numbers. You see, in the world where everything is online and products are not really tangible, customers need at least a pinch of certainty. That’s why, Amazon requires you to ship the products together with valid tracking numbers.
This metric consists of shipments with a valid tracking number and corresponds to the percentage of total shipments during a 30-day time period. Just for the record, companies and agencies like USPS, FedEx, UPS and DHL offer free tracking for sellers like you, so you don’t have to worry about that!
For sellers in North America, the minimum limit for this metric is 95% for their U.S. Shipments. If your VTR is below 95% in a product category, Amazon says that it may “result in restrictions on your ability to sell non-FBA items within that category.” What’s more, it will also have a negative effect on your eligibility to participate in Premium Shipping and guaranteed delivery.
Now that you know how to safeguard your account and maintain healthy seller metrics, it’s time to work on your seller account. Are you sure that it’s marketed enough, that your listings are well-optimized and that the pricing is at its finest? Contact us to figure that out! Meanwhile, enjoy your operations on Amazon and make sure you check your metrics every single day!