What Are The Effects of Account Health on Amazon?
The Account Health page offers information on your account’s adherence to performance targets and the regulations required to sell on Amazon.
This initiative aims to ensure that sellers provide the best customer experience for consumers.
Any account that fails to adhere to these metrics is subject to punitive action from the Amazon brand.
The company regularly reviews the performance of all seller accounts and informs them of when to make improvements.
The goal of being aware of your account’s health is to help avoid any issues that might compromise your selling ability.
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Tips for Monitoring Your Account's Health Rating
The guide below provides specific metrics to consider when monitoring the health rating of your account:
The Account Health Rating
It refers to a metric that helps identify the specific aspects of your account’s health based on the company’s selling policies.
Such a metric also considers factors such as the presence of violations at some point in time.
Additionally, this metric identifies the negative impact of these violations. The result is that you have sufficient insight into factors that positively impact your customer’s experiences.
Any account that features the “At Risk” or “Critical” metric is often subject to deactivation.
Order Defect Rate
This refers to a metric that the Amazon brand uses to determine whether you are offering practical solutions for consumers. It details all the defective orders from a specific seller’s account within a 2-month period.
Specifically, Amazon maintains that sellers must maintain an ODR rate below 1%.
Some of the particular issues that might indicate a defect rate in an account include:
- Poor reviews from customers or consumers.
- Credit and debit card chargebacks.
- Evidence of a poor-quality product or service.
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Cancellation Rate
It refers to a metric that details all the orders your customers might have returned in the past.
While this metric also primarily details cancellations by a specific seller, it can also include those initiated by consumers.
Amazon dictates that any seller on the platform has to maintain a cancellation rate of below 2.5% to continue selling on the platform.
The Late Shipment Rate
Just as the term suggests, the Late Shipment rate refers to the total number of orders that have arrived late to consumers.
Amazon calculates this metric based on a 30-day perspective, with sellers having to maintain a rate of less than 4%.
While the LSR is a metric that indicates delays in orders, Amazon looks at it from various perspectives.
Specifically, the company evaluates the following aspects of product sales:
- The customer’s experience with the product.
- The contacts of the customer.
- Any negative feedback the consumer leaves.
Valid Tracking Rate
Amazon employs a tracking system that all sellers must use to deal with their shipments.
Each product should have a valid tracking number, representing the total shipments the company sells over a specific period.
This metric also only applies to orders that originate from a particular seller.
Consumers of the Amazon brand also rely on tracking numbers to determine the location of orders and recommended arrival dates.
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How to Monitor Account Health
There are various ways through which you can monitor the health of your Amazon account.
Here are the steps involved:
- 1. Visit your Amazon Seller account.
- 2. Click on Homepage and then Account Health.
- 3. Evaluate the metrics we have identified in the guide above.
If everything looks good, you can continue, but if something is starting to get a poorer score than before, you should take remedial steps to improve that particualr metric.
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Conclusion
As you have seen, there are various factors that the Amazon brand evaluates when judging the quality of a particular seller.
The metrics above have specific rates which you have to consider when selling to the public.
Plus, monitoring the health of your account should be an ongoing process, mainly if you sell on Amazon regularly.
