If there’s one thing all Amazon sellers should be concerned with, it’s the Order Defect Rate (ODR). To work up for Amazon Order Defect Rate Improvement can be really challenging. We need to have a very strong knowledge of what is the Amazon Order Defect Rate, factors that affect the ODR and more importantly, what you can do to improve Amazon ODR to avoid account suspension.
Let’s find out together in this article!
What is Amazon Order Defect Rate?
The Order Defect Rate on Amazon for a seller is the rate of occurrence of negative metrics to the total number of received orders within a period of 60 days. Or in other words, the Order Defect Rate is the measure of an Amazon Seller’s ability to provide a Perfect Seller Experience. Naturally, Amazon sellers will want to provide an excellent level of customer care and avoid receiving a high ODR.
Factors Affect the Amazon ODR
Your Order Defect Rate is used by Amazon to measure your performance based on the percentage of orders that receive negative feedback. It’s calculated using three components:
- Negative Feedback Rate
An Amazon seller must try their best to eliminate all negative feedback (if any). If some customer posts a negative review then get it either changed or removed as soon as possible.
- A-to-Z Guarantee Claim Rate
Amazon monitors all the claims made by the buyers on their products. As soon as someone claims that they didn’t receive what was promised or the timely delivery, Amazon under A to Z guarantee claim is liable to pay a refund to the buyer.
This creates an adverse effect on the reputation of the seller and Amazon considers these products defected, thus increasing the defect rate.
- Credit Card Chargeback Rate
Amazon keeps a record on the number of times a seller provides refund orders. Some people initiate a chargeback by informing their banks that they were wrongly charged for a transaction. The bank after primary verifications refunds the money back along with the additional merchant fee.
Those three factors come together to determine your overall Order Defect Rate. Amazon takes into account your A-to-z claims, negative feedback and credit card chargebacks, and then divides it by the total number of orders during a given 60-day period.
Breaching that 1% threshold is more than a little treacherous. So before we dig into strategies for improving your ODR, it pays to understand what makes this single metric so critical.
3 Easy Ways to Improve your ODR
While there’s a wide range of marketing, selling and fulfilling activities to consider, a couple of key elements will always be at play when it comes to your Amazon Order Defect Rate. It’s critical that you keep an eye on your ODR so that you can address any performance issues. Here are 3 ways that you can take to improve your order defect rate.
#1: Sell high-quality products
Well, this need not be mentioned that selling the best quality items will ultimately decrease the probability of items ending up as defected.
To end up as a successful Amazon seller your focus should focus on selling quality, not quantity.
#2: Respond all feedback at the earliest
Negative feedback and A-to-z claims have a huge impact on your order defect rating. If you want to improve your Amazon order defect rate. We strongly recommend carefully reading all A-to-z claims and customer feedback – the primary drivers of your ODR – to discover what’s causing them, then respond to all negative customer feedback and A-to-z claims. Is it late shipments, cancellations or mismatched expectations? The sooner you overcome any issues, the less chance they’ll have to impact your rating. By addressing issues ahead of time, you’ll improve your order defect rate and keep it below one percent.
#3: Make fast and free shipping a top priority
If there’s one thing that’s bound to result in negative feedback, it’s delivery delays. Whether you fulfill orders in-house or rely on third-party logistics, take pains to ensure minimal handling times and reliable shipment tracking.
Some sellers opt to use FBA (Fulfilment by Amazon) after an ODR-induced suspension, since it guarantees Amazon’s strict requirements will be met and can help products reappear in the Buy Box quickly. You can even use it for a small selection of your best-selling products, for a limited period of time.
In conclusion, running a successful online business can be difficult sometimes, especially when you face issues relating Amazon order defect rate. A high order defect rate can have damaging consequences to your business and cause account suspension. If you, unfortunately, encounter any problem regarding Order Defect Rate, just simply contact AMZ.today, we are here to help you resolve your issues.