As a retailer on the Amazon platform, your ultimate goal is to get the Buy Box. Approximately 70% of all sales you will make will depend on it. Unfortunately, it is not very easy to win the Buy Box, and Amazon has not made it easy for just any retailer to acquire one.
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.
What is the Amazon ODR?
What is the Order Defect Rate on Amazon? ODR 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.
How the Order Defect is Calculated
“How do I find the order defect rate from Amazon?” is a common question. Well, the ODR is a simple ratio of a number of orders with defects to the total orders in a period. If you are thinking “what are defects?”, these are the various types:
- Cancellation Defect
- Return Defect
- Delivery Defect
- Customer Complaints
- Item Rating
Every order is counted alone, which means it does not account for multiple complaints on a single product. Moreover, this takes time between the initial order and when the item is received by the buyer. You can only figure out the order defect rate after the customer has left feedback; therefore, expect the calculation after a month or so. Your goal as a seller on Amazon is to make sure you ODR is always below 1%.
Improving your Order Defect Rate on Amazon
Having an ODR of less than 1% will definitely keep you from losing your Buy Box. This is the first thing you lose when you have a high Order Defect rate. Amazon takes this as a sign that you cannot do a great job taking care of orders all by yourself.
Apart from losing your Buy Box, you can also get your account suspended for a certain period of time. You will have to look for a good plan of action within 17 days and present it to Amazon. They will then look at your plan and decide whether you get the box back.
If Amazon sees that nothing is working out, your business will be considered a liability and possibly terminated. So, how do you prevent a poor Amazon defect rate? A good Order Defect Rate is determined by two vital components, these are:
- Negative feedback and
- The A-to-z claims.
Make sure you look at the A-to-Z claims and read all your negative feedback that your business has received and filter them afterward. Look at the major complaints you get and try to locate any patterns in the complaints to identify a common problem. Once you have identified the problem with orders, proceed to make the necessary corrections.
You can use Excel to filter you A-to-Z claims. This is a great tool to help sort them out and find a common denominator for most of your issues with the order defective rate. After using this tool, you will be able to identify all the issues that require immediate attention.
The feedback you receive from buyers on Amazon can contain some comments with bad language. Here, you have the option to ask Amazon to edit your feedback. By doing this, you prevent such comments from affecting you ODR, reducing your chances of account suspension.
What’s more interesting is that a lot of Amazon seller accounts are suspended or deleted in January. This is because a lot of negative reviews are made after the holiday season due to issues with Amazon orders, particularly, the late arrival of packages. It is very important for sellers to be particularly careful, especially during the holiday season.
Can FBA (Fulfillment by Amazon) be useful for a seller on Amazon? The eCommerce platform has made a great fulfillment network where your company can profit by selling items. With FBA, users can store goods in Amazon’s fulfillment markets, gather, collect, make shipment, and give clients services.
Moreover, Amazon FBA simply serves to help sellers meet requirements and prevent Amazon order defect rate suspension. The advantage of using FBA is that you can be able to go back to business shortly after you get suspended for having a high ODR.
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 AMZ-Expert 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!