If you’re paying attention to your account in Amazon Seller Central, you’ll see a page called “Account Health.” Account health is a topic few newcomers to Amazon FBA know about. All marketers should be aware of recommended metrics for account health. In the continuation of this article, we will have a detailed discussion on “account health” and how to improve it. So stay with us.
What is Amazon Account Health?
Having a great shopping experience for customers is important for Amazon, so it uses certain measures to ensure that the seller’s account follows this service.
Therefore, all professional Amazon FBA sellers must follow certain guidelines and rules.
Amazon has assigned a page in your Seller Central account called “Account Health”. The Account page checks whether your seller account meets Amazon’s performance policies and goals.
For professional traders, the Account Health Rating (AHR) is shown on this page. This new feature measures your account health based on Amazon’s sales forecast.
AHR takes into account various factors, such as the number of outstanding violations on your account at any given time. We will talk about these steps later.
Whenever a seller doesn’t have a target, Amazon will send them a notification. These regular reviews help sellers improve their account performance and avoid account suspension.
Amazon Seller Account Levels
Amazon has three different levels to view seller account metrics:
Be active: You have the right to sell on Amazon, and on schedule, you will get paid (money).
Under Review: You can sell on Amazon. But, until Amazon checks your account, the money will be temporarily held.
Termination: You no longer have the right to sell on Amazo. In addition, money is held temporarily.
How to Check Account Health on Amazon?
You can check your account status in the following ways:
Merchant Central >Performance Summary >Account Health
On the Account Health page, you can get an overview of your compliance status and Amazon’s performance goals and policies. The Health Account page consists of three columns:
- Customer Performance: The Customer Performance column is measured by the Order Spot Rate or ODR. We will explain more details below.
- Product Policy Agreement: This section contains a long policy list, as you can see in the picture. Also, you can see AHR in this column if you have a business account. It can have three levels: good, critical, or dangerous. If your AHR is “critical” or “at risk”, this indicates that your account does not comply with Amazon’s selling policies and is at risk of termination.
- Shipping Performance: This column displays the final shipping price, cancellation before completion rate, and Valid Track rate. You are only responsible for the orders you make.
As a general rule, you should be quick to respond to performance ratings from Amazon, especially when using the online review method.
In general, on your account health page, you should pay attention to the following metrics:
1) The order is not good
This metric tracks your performance over the past 60 days. There are things ODR covers, such as successful A-Z claims, negative feedback, and credit card chargebacks. To achieve a satisfactory ODR, sellers must have less than 1%.
2) Return unsatisfied
Getting negative feedback (negative feedback response rate) can affect this metric. If you don’t respond to a return request within 48 hours (late response rate) or reject a return request (incorrect rejection rate), your RDR may increase. This metric should be less than 10%.
3) Delivery time
To avoid receiving a warning or suspension, sellers must keep their Late Dispatch Rate (LDR) below 4%. This metric refers to the percentage of orders with shipping confirmation posted after the expected ship date. The period is defined as 10 days or 30 days.
4) Incorrect invoice rates
This metric is Amazon Business’s invoicing policy and within one business day of shipping confirmation, sellers must issue a VAT invoice (or receipt). Amazon states that the invoice error will be less than 5%.
There are three other factors that only apply to an FBM or a licensed broker:
1) Cancellation fees
The number of cancellations in the last seven days was measured. If the seller starts canceling, it will be counted. In terms of canceling customers, he will not understand. Amazon expects sellers to keep CR below 2.5%.
2) Timely delivery costs
Amazon advises keeping this metric above 97%. Basically, OTDR collects a percentage of total customer orders according to the expected delivery date.
3) Accurate price tracking
The percentage of total orders with a valid tracking number is measured by the Valid Tracking Rate (VTR). You need to keep this metric above 95% to be good to go.
How to Update Amazon Account Health?
You will not violate any of Amazon’s laws when you receive your product listing. Your violation is listed on your account status page. At the right time, you should do them. You should always perform a full health check for your Amazon account.
If your account is “at risk” or “critical”, you can ask them carefully or edit your ad to improve your rating.
If you delete or close a listing in your inventory, the listing will not be removed from the Account Health page. You must resolve any violations independently. Reasons for suspending your Amazon account may be:
- Have multiple seller accounts to sell similar products
- Sale of goods is prohibited
- Create a new account after the suspension of the old account
- Performance metrics not met
As you resolve these violations, your AHR will be updated within 24-48 hours.
One of the most hassle-free ways of finding products for your Amazon FBA is to buy the Arbitrage Share List online, as they are often checked for any complaints.
What happens if you fail your account health metrics?
You must create a Health Account goal metric. Amazon will ask you for a plan of action (POA) to improve the target metrics within 48 hours if you fail.
POA is critical and your business depends on it. Amazon will not suspend your account if you provide an approved POA. This means that Amazon agrees that the problem is clear to you and that you want to fix it.
If you fail the account health metric, the agent will invite you to go over the details, and you can get an idea of how to create your action plan, but don’t rely on the agent’s opinion alone. Take your time and research what you want to include in your POA.
In the early termination process, asking Amazon reps to seek answers and help from others is futile; they won’t. If your complaint is denied, they cannot explain the exact reason. Their only job is to help you get started.
So, before calling to avoid wasting your time, ask your attorney for permission.
What is a Health Support Account?
In fact, the main interface between our business partners and Amazon is the Account Health Support Specialist. Duties of a Medical Support Accountant include:
- Fix chronic system problems
- Contribute to the team environment
- Provide process improvement
- Create an internal document
Important Amazon Account Health Tips
The tips below can help you avoid account suspension and keep your Amazon account healthy:
- Acceptance rules
This section is designed to inform sellers about intellectual property, copyright issues, product issues and other violations. Sellers are responsible for knowing and understanding the intellectual property laws governing the products they intend to sell. A product complaint is a situation where a customer has concerns about an order they have received. It is important to follow the complaint procedure if an item is removed from the sales catalog. Hold invoices from valid supply sources and all necessary security documentation to maximize recovery opportunities. Our advice to marketers is to review the policy compliance section to address any specific compliance areas of the Account Health Dashboard. Failure to address these issues may result in a warning or removal of your selling privileges from Amazon.
- Look Into Customer Service
As we said before, the performance in this section is based on the negative rate, which is determined by three key factors: Negative feedback, A-to-Z warranty claims, Chargebacks. With negative feedback, the seller leaves you with a 2-star or less review of your product. An “A-to-Z Warranty Claim” means that a dispute between the buyer and the seller is not resolved and the buyer contacts Amazon for a resolution. By focusing on the things that often cause customers to react negatively, you can avoid these problems. The reasons may be:
1) Messages are not answered within 24 hours
It would be better to use a “Seller” messaging app like the “Amazon Seller App” to quickly respond to customers when you are away from your main workstation.
2) Return control
How returns are handled can make all the difference in the type of feedback that buyers post or if the buyer feels the need to change a dispute into a statement from scratch. We give you this advice: always put yourself in your customers’ shoes and treat them the way you want to be treated.
3) Compensation Management
Amazon also supports sellers by handling returns. Amazon handles customer transactions. To avoid refunds, always deliver products to the address specified in the order. Using a carrier that gives Amazon added tracking also helps.
- Delivery service
Shipping performance is critical to account health. Make sure to keep the dimensions mentioned for shipping. However, if you decide to use a 100% FBA service, these terms will not apply to your account.
- Check your social media
Continually reviewing and updating your inventory and ensuring that the selling price is updated is the key to keeping cancellation rates low.
It is very important to check the health of your Amazon account regularly. An overview of each account’s performance is provided on the Amazon Account Health page.
You can analyze critical metrics by performing comprehensive health checks to ensure compliance with Amazon policies. So, if there is a problem with your ad, you will be notified, which will prevent your account from being suspended.
To avoid account suspension, you can get products using hassle-free online arbitration from companies like OABeans.