Improve your Order Metric Performance
Amazon is well known for having more satisfied customers among the other ecommerce platforms. To serve its customers with the ultimate satisfaction, it urges its sellers to leverage them with the best in class online services. Being strict, Amazon constantly checks the performance of your seller central account on the basis of your efficiency to serve customers. Amazon calls it as Order Metric performance. Higher your order metric performance, higher will be your ranking on the Amazon search page.
Parameters for Measuring the seller performance
Amazon measures the seller performance on the basis of following parameters:
1. Order defect rate (ODR)
A customer’s feedbacks and more stars of review give your store a strong effect and strengthen a trust factor among other buyers. To get the positive feedback and 5-star rating, you need to be extraordinary in serving your customers so that they would be satisfied completely. But when your customers don’t get what they want and expect from you they leave a negative feedback showing their dissatisfaction. This negative feedback measures the ODR of your seller central account. Amazon counts the low star ratings, A-to-z Guarantee claim, seller-buyer disputes and negative comment and feedback for your service and products. Higher the ODR more will be the chances Amazon will take a severe action against you. Remember, Amazon has set its ODR limit should be less than 1% for every seller.
In any case, if you are having any dispute or getting negative feedback from the customers, you should be quick and prompt in resolving them. This will help in decreasing the Order defect Rate and improve your seller performance.
2. Pre-fulfilment cancellation rate
Amazon calculates the pre-fulfilment cancellation rate of the seller. The number of orders cancelled before fulfilling at the seller end contributes to the pre-fulfilment cancellation rate. The order cancellation at your end can be due to lower inventory or products being out of stock. But, if your store has more cancellation rate than the fulfilled orders, you might run with the risk of Amazon strict action. Amazon does not consider higher pre-fulfilment cancellation rate more than 2.5%.
3. Late shipment rate
The orders which are not delivered timely are counted in the late shipment at your store. Amazon calculates the percentage of late shipment rate in the specific interval by analysing the number of orders fulfilled and late fulfilled orders. It has a 4% limit for late fulfilment rate. Amazon constantly monitors and tracks your orders and spectaculates your process to fulfil customer orders and therefore you should be active and prompt in delivering the orders to customers timely.
Amazon Review Process-
Amazon checks the seller performance and sends them the notification about their limit and improvements required (if any). The review process is done in order to enhance the seller performance metric.
To know how efficient you are serving, Amazon checks the health of your seller central account and monitors the various parameters that are related to the customer’s satisfaction.
- how prompt are you in order fulfilment?
- how precisely do you deliver the items to customers?
- how do you deal returns and refunds?
- what is your ODR?
- what is the cancellation rate of your Amazon store and more?
To the poor performing sellers, Amazon sends a first warning alert giving 60 days to improve and reach the target of minimal set limit.
If the order metric performance does not get improved, Amazon may block or suspend the seller central account.
If your account is suspended then you can apply for reinstatement (Read: Save Yourself From Getting Suspended on Amazon Seller Central-Reasons & Reinstatement) but with the strong plan of action and better strategy this time.
What are the conditions Amazon has decided for you-
- Late shipment rate: < 4%
- Pre-fulfillment cancel rate: < 2.5%
- Order defect rate: < 1%
Amazon strictly checks your performance and scale your services and any failure to these might harm your amazon account health severely.
Tips to improve your Performance Metric
1. Activeness and preciseness are the keys to unlock metric Performance. You need to be active when you get your order and sit not at rest until you successfully delivered it to your customers.
2. Pick the right item, pack the right item and ship it at the scheduled time. The negative comments and order returns are major because of the wrong item or late delivery.
3. Most of the customers are seen complaining about the defective items they receive. Therefore you should be alert and be caring while you are dispatching the items from your warehouse.
4. Better if you use FBA for order fulfilment.
5. Customers expect their orders as soon as possible. Millions of customers have taken the prime membership on the Amazon and receive 1-day, 2-day delivery. Make your products eligible for prime delivery so that you can fulfil the orders timely. This would reduce the late shipment rate.
To scale the seller’s performance, Amazon has set the limit for seller performance factors. To be in the market of Amazon, you being a seller central account holder should meet these limit while selling products on Amazon. It would be better to take an assistance of the professionals in serving your online buyers with indeed satisfaction. Evantage is one of the Amazon service providers who has been helping the Amazon sellers in running their online Amazon store successfully.