As a retailer on the Amazon platform, your ultimate goal is to get the Buy Box. It’s strict and scary, but not at all impossible to master.In order to be eligible for a Buy box, you have to follow particular requirements. One of the most important determinants to winning a Buy box is the Amazon Order Defect Rate (ODR). At the same time, as a seller on Amazon, you always need to make sure you pay more attention to the ODR. So, let’s look at this in further detail.
Understanding Order Defect Rate on Amazon
Order Defect Rate is one of the most important performance assessment metrics. Represented as a percentage, ODR is the measure of how well your business responds to customers. It is made up of the following components:
1. A-to-Z guarantee claim rate
A-to-Z claims are made by customers when they did not receive a package they were expecting from you. This was created for customers to give them confidence in the platform in the event that a business transaction does not go as the seller promised. It also covers the conditions in which the item arrives in and the total time of delivery.
2. Negative feedback rate
Your business is in jeopardy every time your customers express dissatisfaction. This can range from receiving a defective item after 30 days to your capability to provide good customer experience in terms of communication.
As a seller on Amazon, you should always value your customer experience. Take all measures necessary to avoid negative feedback; however, if you find yourself in a situation where customers are not happy with your business, try even harder to make changes.
3. Service chargeback rate
A chargeback simply refers to a saturation in which a card user informs their bank of a dishonest transaction made with their card. The bank will then look into the complaint from the customer.
If the story checks out, the buyer will be given a full refund and, sometimes, an extra fee. A lot of scam artists know of this and use these chargebacks to make a quick buck. As a retailer, you have to decide whether you will issue the refund and fight the claim.
What happens if your ODR reaches 1%?
First, you lose the Buy Box automatically for any products you’re responsible for shipping.
Second, Amazon can suspend or terminate your account straight away, holding payments in order to refund customers.
Suspensions occur when your Order Defect Rate is slightly above 1%. After seller privileges are removed, you have 17 days to come back with a plan of action to be reinstated.
But if your ODR is dramatically above 1%, Amazon views it as an indication that serious issues are at play — things like excessively late deliveries and numerous cancellations, which have a direct impact on how consumers will view the marketplace itself.
This is why instead of a temporary suspension and appeals process, your account could be terminated altogether if you get 3% of ODR.
How can you improve your Order Defect Rate?
First, assess and address feedback. 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. Is it late shipments, cancellations or mismatched expectations?
If you find a recurring problem, make it a top priority. The sooner you overcome any issues, the less chance they’ll have to impact your rating. If you sell overseas, make sure you can translate and understand all A-to-z claims and customer feedback.
From time to time, you may come across customer feedback that includes obscene language or personally identifiable information. Or you might find a misplaced review that’s intended for the product itself, or that addresses issues around an order fulfilled by Amazon. In these instances, simply ask Amazon (via Seller Central) to edit the feedback so it won’t impact your ODR.
Second, 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.
Keep in mind, too, that many customers post A-to-z claims and negative feedback in January due to late deliveries during Christmas. Your Order Defect Rate could be well below 1% all year, and then suddenly skyrocket if you fail to plan ahead for the end-of-year holiday rush. For this reason, it’s especially imperative to optimize your fulfillment during the holidays.
Amazon order defect rate appeal
Running a successful online business can be difficult sometimes, especially when you face an Amazon order defect rate appeal. Moreover, Amazon has created a lot of requirements for its sellers. Therefore, you should always look for ways to make sure your ODR appeal is just right. This can be tricky, and you may need help.
This is where the Amazoker team of professionals comes into the picture. Our agency will provide the experts to help you address any problem you encounter based on your order defect rate with our Amazon Appeal Service!