What are Amazon Performance Metrics?
It is well known that customer satisfaction is one of the most important key figures for sellers; therefore, it is also important for the Amazon Performance Metrics. These metrics are used to assess the quality of the seller on Amazon. On the customer statistics page, you can find more information about how you score overall in customer satisfaction.
The following statistics are calculated and displayed in the Amazon Performance Metrics:
Rate of Order Defects (ODR)
The rate of purchase order defects shows a percentage of negative purchase order reviews. For these unfavorable reviews, an A-to-Z warranty claim was made, or a service refund was made. The number of these reviews enables an overall assessment of the performance.
In Which Period Is the ODR Calculated?
The order defect rate can be calculated for any order period in the past. Many defects are usually not reported until several weeks after the order has been placed. Therefore, the period will often not end earlier than 30 days from the current date.
Cancellation Rate
The cancellation rate is all seller-canceled orders displayed as a percentage of total orders during a given 7-day time period. CR only applies to seller-fulfilled orders.
This metric includes all cancellations initiated by the seller, excluding those that are solicited by the customer using the order-cancellation options in their Amazon account. Pending orders that are canceled by the customer directly on Amazon are not included.
Something important to take into consideration is that Amazon’s policy is that sellers should keep a CR under 2.5% to sell on the platform. A CR above 2.5% may result in account deactivation.
Late Deliveries Rate
Delivery on time is a promise to the customer and therefore, a vital process. All orders for which the shipping confirmation is sent after the announced shipping date are considered a delayed delivery.
Valid Tracking Numbers Rate
The exact calculation of this Amazon Performance Metric is as follows: The total number of packages sent with a valid tracking number is divided by the total number of packages sent and confirmed.
By the way, the tracking numbers are only valid if they can be proven to have been scanned at least once by the transport service provider. The seller must provide a tracking number for 95% of the parcels sent.
Punctual Delivery
The value of punctual delivery indicates the packages shipped that the seller has received by the estimated delivery date. This result is determined by the confirmed tracking information.
The calculation of punctual deliveries is based on the track, which also shows the rate of valid tracking numbers for all packages shipped.
Dissatisfaction with Returns in Percent (RDR)
RDR shows customers’ satisfaction with the handling of returns and measures as a percentage. All return requests that have not been answered within 48 hours or have been incorrectly rejected are included in the calculation. A negative customer rating, as a result, is also taken into account.
Percent Dissatisfaction with Customer Service (CSDR)
The CSDR measures customer satisfaction with your responses to buyer messages. If you reply to a buyer via the buyer-seller mailbox, we will add the question “Did this solve your problem? Buyers can answer “Yes” or “No” to this question and the statistic ” dissatisfaction with customer service in percent” is the percentage of “No” answers divided by the total number of answers.
Are unfavorable reviews withdrawn by the seller taken into account?
No, unfortunately not. If a buyer withdraws his negative rating, this changed rating will not be included in the order defect rate calculation.
What are the sales performance requirements?
Sellers at Amazon should make sure that an excellent service level is achieved and maintained.
The following sales performance requirements should be met for each product sale:
- Rate of order defects should be below 1%.
- Cancellation rate before fulfillment should be below 2.5%.
- Rate of late delivery should be below 4%.
What happens if my seller account does not meet the sales performance requirements?
Failure to meet the performance targets listed above may result in the suspension or restriction of the seller’s eligibility to sell. Of course, this should be prevented at all costs, so full attention should be paid to meeting these Amazon performance metrics.