How to Improve an Amazon Order Defect Rate(ODR)?

How to Improve an Amazon Order Defect Rate(ODR)?

If there’s one thing all Amazon sellers should be worried with, it’s the Order Defect Rate (ODR). This metric is one of the most significant measurements tracked by Amazon, used to determine your health as a seller.

• It can track who will win (or lose) — the all-important Amazon Buy Box.

• It occasionally gets accounts deactivated.

• It constantly keeps tabs on which sellers are providing positive consumer experiences — and who’s failing to fulfill consumer expectations.

• It’s strict and terrifying, but not at all unfeasible to master. Once you have a strong understanding of how the Amazon Order Defect Rate works, it can become very easy to excel at this all-important metric.

Here are the basics that every seller must know:

How does the Amazon ODR work?

Your Order Defect Rate is used by Amazon to determine your performance based on the percentage of orders that receive negative feedback. It’s measured using three components:

• Your A-to-z claims, which are made by consumers when orders are unacceptable or delivery is too slow

• Any negative feedback, comprising comments and ratings.

• Your credit card chargeback, or the number of times you refund orders.

These three factors come collectively to decide your overall Order Defect Rate. Amazon takes into account your A-to-z claims, negative feedback and credit card chargeback, and then separates it by the total number of orders during a given 60-day period.

So if you obtained one A-to-z claim and two negative customer feedbacks across a total of 100 orders placed in any month, your ODR is 3%.

Which, for the record, is far too much. To carry on selling on Amazon, sellers have to maintain an ODR under 1%.

Though, there is a bit of silver lining. Any time you get one A-to-z claim and one negative feedback for the similar order, these are counted as one factor; not two. Thus if you observe a slight difference between your ODR and the total number of A-to-z claims and customer feedback, it’s probably because the same consumer made an A-to-z claim soon before posting negative feedback.

Yet, each piece of negative feedback is one more claim you can’t afford.

Violating that 1% threshold is more than a little unreliable. So before we dig into strategies for advancing your ODR, it pays to know what makes this single metric so dangerous.

What happens if your ODR reaches 1%?

Initially, you lose the Buy Box automatically for any products you’re responsible for shipping. Amazon’s goal is to secure the consumer experience and protect buyers’ trust in the Buy Box. If your orders are defective, Amazon’s reputation is at danger.

Next, Amazon can suspend or terminate your account directly, holding payments in order to refund customers. Amazon is very strict on Order Defect Rates, so your relationship with Amazon is at danger the moment your ODR reaches 1% — no matter how big or victorious you are.

Suspensions happen when your Order Defect Rate is slightly above 1%. After seller rights are removed, you have 17 days to answer with a plan of action to be reinstated.

But if your ODR is severely above 1%, Amazon sees it as a sign that serious issues are at play — things like extremely late deliveries and many cancellations, which have a straight impact on how consumers will view the marketplace itself.

This is why that 3% we mentioned earlier could be more than a little terrible. Instead of a Temporary suspension & appeal procedure, your account could be terminated overall.

How should you examine ODR?

If you’re using Channel Advisor’s Amazon Dashboard, you can analysis your performance at any time by seeing at Marketplaces> Amazon: Overview in ChannelAdvisor. The Order Defect Rate is revealed on the right, under your Amazon Seller Reputation.

You can also examine your "performance over time" trailing 12 months, in both percentage and value. Because this is how Amazon examines your performance, it’s an important way for sellers to know exactly how they’re viewed by Amazon.

What should you keep in mind to maintain ODR?

You should focus on the mentioned below three aspects to maintain ODR:

• Shipping should be fine.

• Delivery should be timely.

• Quality of Product should be good.

How can you improve your Order Defect Rate?

While there’s an extensive range of marketing, selling and fulfilling activities to consider, a couple of key elements will always be at play when it comes to your Amazon Order Defect Rate.

First, assess and address feedback. We strongly suggest cautiously reading ALL A-to-z claims and customer feedback — the primary drivers of your ODR — to find out what’s causing them. Is it late shipments, cancellations or mismatched expectations?

If you find a frequent problem, make it a top priority. The earlier you overcome any issues, the less chance they’ll have to impact your rating. If you sell overseas, make clear that you can translate and know all A-to-z claims and customer feedback.

Occasionally, you may come across customer feedback that includes rude language or personally identifiable information. Or you might find a lost review that’s intended for the product itself, or that addresses issues around an order fulfilled by Amazon. In these cases, simply inquire Amazon (via Seller Central) to edit the feedback so it won’t impact your ODR.

Next, make quick and free shipping a top priority. If there’s one thing that’s bound to result in negative feedback, it’s delivery interruptions. Whether you accomplish orders in-house or rely on third-party logistics, take pains to guarantee minimal handling times and reliable shipment tracking.

Some sellers choose to use FBA (Fulfillment by Amazon) after an ODR-induced suspension since it assures Amazon’s strict requirements will be met and can help products reappear in the Buy Box quickly. You can even use it for a minute selection of your best-selling products, for a fixed period of time.

Keep in brain, too, that many customers post A-to-z claims and negative feedback in any month due to delayed deliveries during the holiday season. Your Order Defect Rate could be well beneath 1% all year, and then unexpectedly skyrocket if you fail to plan ahead for the end-of-year holiday rush. For this cause, it’s especially vital to optimize your fulfillment during holidays.

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