What Are the Leading Indicators?

• Order Defect Rate

Amazon's policy is that every seller must keep the ODR rate of less than one percent. Order Defect Rate is composed of three metrics: negative feedback, chargeback claim, and A-Z guarantee claim.

• Cancellation Rate

The Cancellation Rate is the seller canceled orders characterized as a percentage of overall orders throughout a given seven-day period. This only applies to those seller-fulfilled orders. This metric covers every order cancellation started by the seller, with the exclusion of such requested by the client via the order cancellation options in their account.

• Late Shipment Rate

This covers all orders along with a ship confirmation done after the anticipated ship period. Late Shipment Rate is characterized as a percentage of whole orders over both ten days and thirty days period. This only applies to those seller-fulfilled orders.

• Valid Tracking Rate

On the other hand, a Valid Tracking Rate covers every shipment along with a valid tracking number. These numbers are represented as a part of the total shipments throughout a given thirty days period.

• On-Time Delivery Rate

OTDR covers every shipment transported by their anticipated delivery period categorized as a portion of total tracked shipments. On-Time Delivery Rate applies to seller-fulfilled orders exclusively.

• Return Dissatisfaction Rate

Lastly, Return Dissatisfaction Rate calculates the satisfaction of the customer with their return experience. That experience is negative if the return request has negative feedback from the buyer, is denied incorrectly, or isn’t responded to within forty-eight hours. Take note: your RDR is all negative return requests, which are categorized as a ratio of overall return requests.

 Below is a table with information on how each of these indicators should be, as required by Amazon. 

How to Keep Your Account Healthy?

If you want to protect your Amazon Account Health, it’s crucial that you track performance indicators reports. There are some indicators to look out for if you are anxious about your account being suspended.

If the notice from Amazon indicated that you’re suspended due to poor performance, check your Amazon dashboard under the “Performance” tab of your seller account. That will determine which metrics aren’t meeting the targets of Amazon.

You also need to fix problems on your orders promptly, monitor the level of product quality, and analyze for possible improvement of the product itself and service level. There are many things you can do to safeguard and keep your account healthy.

Conclusion

Ask yourself, how well do you manage your Amazon Seller Central business? The answer is quite easy. However, it needs a lot of commitment and effort from the seller end to accomplish it.