If you are selling on Amazon, there is one thing sellers should be concerned with; it’s the Order Defect Rate (ODR). Amazon uses the Order Defect Rate to assess your performance, measuring the percentage of orders that receive negative feedback. This metric stands as one of Amazon’s most crucial measurements for evaluating your status as a seller.
- It will decide who wins or defeats the all-important Amazon Buy Box
- It sometimes gets the account deactivated
- It always keeps tabs on which sellers are providing positive consumer experiences and who failing to meet consumer expectations
How does the Amazon ODR work?
There are three components to calculate ODR:
- Your A-to-z claims, Which consumers make if the orders are unsatisfactory or the delivery is too late
- Any negative feedback, Including comments and ratings
- Your credit card charge-backs, The number of times you refund orders.
All three variables converge to assess the average risk of Order defect rates. Amazon takes into account your A-to-z claims, negative feedback, and credit card charge-backs, and then divides it over a specified 60-day period by the total number of orders.
If a seller received an A-to-z claim and two negative feedbacks across a total of 100 orders placed in a month, Your ODR is 3%. Which is way too high for the record sellers who will maintain an ODR under 1% to continue selling on Amazon.
What happens if your ODR reaches 1%?
First, you immediately lose the Buy Box on any products that you are responsible for shipping. The goal of Amazon is to preserve the user experience and sustain the confidence of consumers in the Buy Box.
Secondly, Amazon will automatically cancel or terminate the account, retaining refunds for customers to be reimbursed. Amazon is very strict about Order Defect Rate, so your relationship with Amazon is at risk as your ODR reaches 1%. It doesn’t matter how successful you are.
When the order defect rate is slightly above 1%, suspensions occur. Once you have lost seller rights, you must submit a plan of action within 17 days to request restoration.
That is why the 3% that we listed earlier could be more than a little catastrophic. Your account could face immediate termination instead of going through a temporary suspension and appeals process.
How can you improve your Order Defect Rate?
Although there is a wide variety of marketing, sales, and completing activities to consider when it comes to your Amazon Order Defect Rate, a few key factors will still be at play.
First, assess and address feedback:
We highly recommend reading Both A-TO-Z claims and customer reviews carefully, the main drivers of your ODR, and learning what triggers them. Make this a top priority anytime you see a recurrent problem. The faster you solve any challenges, the less likely they’ll affect your ranking. When you market internationally, make sure that you can decode both A-to-z claims and consumer reviews and understand them.
Second, make fast and free shipping a top priority:
If there’s one thing that is likely to cause negative reviews, it’s delays in production. If you are placing orders in-house or depending on logistics from third parties, take care to ensure minimum processing times and accurate monitoring of shipments.
After an ODR-induced suspension, some sellers choose to use FBA (Fulfillment by Amazon) because it ensures they meet Amazon’s strict specifications and can help their products reappear quickly in the Buy Box. You can also use it, for a limited time, for a small range of your best-selling items.
The ODR could be well below 1% year-round, and then unexpectedly explode if you don’t prepare for the end-of-year holiday rush forward. For this reason, maximizing your fulfillment during the holidays is especially imperative.
Conclusion: There is never a time for Amazon to avoid prioritizing the Order Defect Rate. If you are working on restoring a high ODR or are diligent in holding it below 1%, the tips above may aid.
