Being a seller on Amazon means that you have to provide top notch customer service to your buyers. However, understanding how all this works is sometimes overwhelming. Here are the key terms and what you need to know about them.
Customer experience history is measured against four key criteria:
1. Order defect rate (ODR) represents the orders for which you have received a negative feedback, an A-to-Z Guarantee claim, or a credit card chargeback.
2. Pre-fulfilment cancellations will show you how many times a customer attempted to buy an item that you did not have in stock. You had to cancel the order, because you couldn’t fulfil it.
3. Missed promises show you how effectively you are meeting your customers ‘shipping expectations. Amazon expects you to promise to ship the item within two business days. Any orders confirmed to have been shipped three or more days late are counted as having missed the promise.
4. Percentage of orders refunded shows, if the number is high, that you are refunding too high a percentage of your products.
How Does Valid Tracking Rate Work?
To calculate your Valid Tracking Rate, Amazon takes the number of packages you’ve shipped with a valid tracking divide it by the total number of packages you’ve shipped and confirmed. Tracking numbers are considered valid only if you have at least one carrier scan recorded. Amazon requires that 95% of all packages you ship include a valid tracking number.
What is Return Dissatisfaction Rate (RDR)?
RDR measures the customers’ satisfaction with how their returns are processed. It’s calculated as a percentage of valid return requests that were not answered within 48 hours, were incorrectly rejected, or received negative customer feedback.
What is Customer Service Dissatisfaction Rate (CSDR)?
CSDR measures customer satisfaction with your responses to buyer messages. When you respond to a buyer through the Buyer-Seller Messaging Service, Amazon includes a survey immediately below your response asking: Did this solve your problem? Buyers can select Yes or No, and the CSDR is the percentage of No votes divided by the total number of responses.
Amazon holds specific acceptable standards against these performance measures. Your order defect rate (ODR) is expected to be below 1 percent. Your pre-fulfilment cancellation rate should stay below 2.5 percent, and your missed promise rate must be below 5 percent. Keep in mind that these are just baseline numbers. Many merchants achieve far better performance statistics than these. Use your Customer Experience newsletter to hone your operation.
These metrics are very important as they are a report card showing very clearly just how your customers are perceiving your performance on Amazon. In fact, you could very well consider it to be the notes you must follow in order to master Amazon performance guidelines.
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