Amazon is a massive online marketplace where sellers can showcase their products and reach millions of customers worldwide. However, with such a large platform, Amazon has established a set of standards that sellers must meet to ensure the best customer experience. These standards are known as Seller Performance Metrics, and they are essential for maintaining a healthy Amazon account. In this blog post, we will explore tips and strategies to help sellers pass these metrics and maintain a healthy Amazon account.
WHAT ARE SELLER PERFORMANCE METRICS?
Seller Performance Metrics are a set of standards that Amazon uses to evaluate sellers’ performance on its platform. These metrics are calculated based on several factors, including customer feedback, order defect rate, late shipment rate, and more. The goal of these metrics is to ensure that sellers are providing the best possible customer experience on Amazon.
Seller Performance Metrics are divided into four categories:
- Order Defect Rate (ODR)
- Late Shipment Rate (LSR)
- Pre-Fulfilment Cancellation Rate (PFCR)
- Buyer-Seller Contact Response Time (CRT)
Let’s take a closer look at each of these metrics and how they are calculated.
Order Defect Rate (ODR)
Order Defect Rate is a metric that measures the percentage of orders that have received negative feedback or have had an issue that requires Amazon’s intervention. This metric includes the following types of defects:
- A-to-Z guarantee claims
- Negative feedback
- Service chargebacks
- Chargebacks
- Returns that are not processed on time
Late Shipment Rate (LSR)
Late Shipment Rate is a metric that measures the percentage of orders that are shipped after the expected ship date. This metric is based on the number of orders that are not shipped within two days of the expected ship date.
Cancellation Rate (CR)
The PFCR refers to the percentage of orders which are cancelled by the seller before shipment. This metric is based on the number of orders that are cancelled by the seller before the order is shipped. Your cancellation rate needs to be less than 2.5% to meet Amazon’s PFCR target.
Buyer-Seller Contact Response Time (CRT)
The CRT metric measures the number of customer messages you have responded to within the 24-hour time frame recommended by Amazon. Amazon demands that every seller replies to a customer within a 24hr period, failure to do so will negatively affect the CRT metric.
WHY ARE SELLER PERFORMANCE METRICS IMPORTANT?
Seller Performance Metrics are important because they affect the visibility and ranking of your products on Amazon. If your metrics fall below the required thresholds, your products may be suppressed or even removed from search results. This can lead to a significant loss of sales and revenue.
In addition, if your metrics consistently fall below the benchmark, your Amazon account may be suspended or even terminated. This can have a devastating impact on your business, especially if Amazon is your primary source of revenue.
TIPS TO IMPROVE SELLER PERFORMANCE METRICS
Maintaining a healthy Amazon account is essential for your success as a seller on the platform. Here are some tips to help you improve your seller performance metrics and maintain a high level of performance:
Tip #1: Keep a close eye on your Order Defect Rate (ODR)
Monitor your ODR closely and take action to address any issues that may arise. Amazon requires that sellers maintain an ODR of less than 1%. Keeping a close eye will not only help you maintain customer satisfaction ratings, but it will also ensure that you remain compliant with Amazon’s performance metrics and avoid account suspensions or penalties.
Tip #2: Ship Your Orders on Time
To avoid late shipments, you should ensure that you have enough inventory to fulfill orders promptly. Use a reliable shipping carrier and keep track of the shipment’s status. You can use Amazon’s Seller Central to monitor your shipments and identify any potential issues before they become problems.
Tip #3: Avoid Cancellations Before Shipping
Canceling orders before shipping them can result in customer dissatisfaction and a high PFCR. To avoid cancellations, you should ensure that you have enough inventory to fulfill orders promptly. You should also double-check your inventory levels before confirming an order. If you cannot fulfill an order, you should cancel it immediately and issue a full refund to the customer.
Tip #4: Maintain a high level of customer satisfaction
Amazon places a strong emphasis on customer satisfaction and rewards sellers who provide an exceptional customer experience. To ensure a quick response time, you should monitor your inbox regularly and respond to inquiries promptly. You can also use automated tools to respond to frequently asked questions. If you cannot respond to an inquiry immediately, you should acknowledge the message and let the customer know when they can expect a response.
Tip #5: Monitor Your Account Health Regularly
It is crucial to monitor your account health regularly to ensure that you are meeting the Seller Performance Metrics. You can use Amazon’s Seller Central to monitor your account health and identify any potential issues before they become problems. You should also review your customer feedback and respond to any negative feedback immediately.
If you notice any issues with your account health, take immediate action to address them. You can contact Amazon’s Seller Support for assistance with any issues you encounter.
ACE SELLER PERFORMANCE METRICS WITH AMAZON EXPERTS
To maintain a healthy Amazon account, one must commit to exceptional customer service, effective inventory management, and meeting Amazon’s performance standards. However, this can be overwhelming for new sellers. It’s crucial to have experts manage these tasks, including closely monitoring performance metrics and addressing any issues that arise.
Generation eCom is a digital marketing agency that helps businesses increase their revenue on Amazon by providing personalized services. We handle all aspects of Amazon marketing, from optimizing product listings to managing retail tools and providing reporting dashboards. By partnering with us, you can focus on growing your business while we handle the rest.
Contact us at ericpaul@generationecom.com or visit our website to start scaling your Amazon business today!
