If you’ve logged into your Amazon Seller Central account to find something called the Account Health page and don’t know what it is, RepricerExpress is here to break it all down.
This section of your Amazon seller account gives you an overview of the seller metrics in your account that affect your overall health. We will show you the important parts and how to learn them.
What is an Amazon Account Health Page?
Selling on Amazon means agreeing to abide by their rules. One of them is to keep metrics at a certain level, which is called account health. There are different ways to meet to continue selling on Amazon; Violating them regularly may result in a warning, account suspension, or if not corrected, account deletion.
Amazon has created a dedicated page in your Seller Central account called “Account Management” that displays the six most important metrics you should focus on. That is not to say that you can ignore the other steps, but these are very important to maintain the privilege of selling on Amazon. But as a bonus, Amazon says they’ve removed some metrics from the Health Accounts page — and those are selling metrics that Amazon won’t do.
What metrics should I focus on on the account health page?
As mentioned above, there are six main points to focus on, which means the difference between interactive sales and a call or action plan.
- Order Defect Rate
Order Defect Rate (ODR) measures your overall ability over the past 60 days to keep customers satisfied according to your A-to-Z commitment. It covers a few areas, all you need to collect less than 1% to get a satisfactory ODR. The law is invalid if:
- Has a negative response
- Complaints are successful from A to Z
- Credit card fraud
- Cancellation fees
This applies only to orders fulfilled by the seller and equals, within 7 days, the percentage of canceled orders. For example, if a customer cancels a pending order, it will not affect your execution rate (CR). Regarding the health of the Amazon account, this metric must be below 2.5%.
- Late fees
Measured over 10 days or 30 days, Delivery Delivery (LDR) refers to the number of orders (as a percentage of total orders) and shipping confirmations posted after the expected ship date. Your LDR must be below 4% or you may face a warning or suspension.
- Good value for money
Again, this metric only applies to orders that have been fulfilled by the seller. Expressed over a 30-day period, the Valid Tracking Rate (VTR) measures the percentage of total orders assigned a valid tracking number. Keep this metric above 95% and you’re good to go.
- Timely delivery rate
The on-time delivery rate (OTDR) summarizes, as a percentage of the total number of orders, the number of packages that arrive at their door by the expected delivery date. This metric only applies to seller orders that are fulfilled, so make sure to keep it above 97%.
- Return unsatisfied
Last but not least, this metric has to do with the customer’s satisfaction with the return experience. The rate of return dissatisfaction (RDR), which should be less than 10%, may increase if:
- get a negative response (negative response rate),
- do not respond to return requests within 48 hours (late response rate), or
- Reject incorrect return requests (incorrect rejection rate)
- Incorrect invoice amount
In June 2020, Amazon introduced a new performance metric called Invoice Defect Rate. It aims to help third-party sellers review the billing experience it provides to Amazon Business customers who need invoices or receipts for taxes and accounts.
What is Amazon’s Unpaid Rate? This is part of the Amazon Business customer policy for which you have not provided a downloadable VAT invoice (or receipt) within one business day of dispatch confirmation in accordance with Amazon’s business billing policy.
Amazon recommends that sellers keep the rate of defective invoices below 5%. As of this writing, nothing can be done if your Amazon invoice number exceeds this goal.
With eDesk, you can instantly generate invoices for your customers using Amazon’s VAT Calculation Service.
What Happens if Your Amazon Account Health Metrics Aren’t on Target?
If this is the first time you’ve been a metric or two below the recommended range, don’t panic just yet. Amazon will contact you and ask you to submit a Plan of Action (POA) within a certain period of time (usually 48 hours). The representative will invite you to go over the details so that you can get an idea of how to create your power of attorney.
If you submit a valid power of attorney, Amazon will not suspend your account because you have shown them that you understand where the problems are and how to fix them.
We can’t stress enough that you need to keep everything organized and write your POA like your business depends on it, because it does.
When you’re on the phone with Amazon, it helps to know what they can and can’t do. They can offer their opinion, but don’t put all your eggs in one basket on that first phone call. Take your time and really do your research on what to include in your POA.
Don’t ask an Amazon representative (while on suspension) to pester the other team for answers. They can’t – and they won’t. Their only job is to help you in the first step, which means they probably won’t be able to tell you why your request was rejected, if at all. Don’t be surprised if you talk to a different agent next time. Amazon representatives take every call as they come, they are not “assigned” to a customer case.
Finally, work with each team to their potential at each level. This means consulting your own lawyer before starting a complaint, for example. don’t make an empty promise just to end it. It won’t happen if you have to go home most of your time.
Maintaining the health of your Amazon account should always be a top priority, but not at the expense of maintaining other areas of your business. Fortunately, using RepricerExpress is convenient and can save you a lot of time. Once you’ve done things, you can let them go in the background and make small changes in the future if needed. But if you don’t use it, you’re missing out, so sign up right away and start using the 14-day free trial.