Order Defect Rate, or ODR, is a common issue sellers come across with. But what is it?
As a rule, it includes orders, which have more than one defect, represented in the percentage of all orders during a period of 60 days. Due to this metric, Amazon can control your health as a seller. Also, if your ODR is in excellent condition, you can win the Amazon Buy Box. It can seem a little bit scary; however, if you master this skill and determine how it works, you will have no problems with this kind of suspension.
Now when you have the bigger picture of the whole idea, let’s dive deep and learn more about ODR. There are three main components of ODR, which include:
- Negative Feedback Rate
- A-to-Z Guarantee Claim Rate
- Credit Card Chargeback Rate T
These factors determine your account’s ODR. Let’s look at each of them individually:
We all know that customer satisfaction remains the top priority for Amazon. And of course, negative feedback can serve as one of the most common reasons for suspension. If your negative feedback doesn’t show a low percentage, it means you are walking on a tightrope.
Always try to provide the best service in order to avoid negative feedback. But if you still receive negative feedback, try to ascertain the root cause of it and solve the issue before your account deactivation. However, keep in mind that you cannot contact the buyer using the client’s private information, such as telephone number or email address. The only loophole allowed by Amazon is a buyer-seller messaging template. In order to avoid such kind of issues, always check your account health performance section, it can help you know how Amazon can view your account. Do not ignore any feedback, even the bad ones. Communicate with your customer, offer them a refund or another product. Try to solve the problem in its early stages.
A-to-Z Guarantee Claim Rate
The aim of the A-to-Z Guarantee is to preserve you during the process of fulfilling the product by a third-party seller.
In general, the following types of claims can influence your ODR:
- Claims which are granted and debited from your account
- Claims according to which the client who filed the claim was refunded
- Claims which serve as a reason for the cancellation of the order by Amazon
The client can ask for the refund under A-to-Z Guarantee when:
- They have not received the product, after passing three days
- A completely different product was delivered
- The item was returned with a traceable shipping method, but the seller refused to refund
Credit Card Chargeback Rate
A credit card chargeback shares some similarities with the A-to-z Guarantee Claim. The only exception is that the credit card issuer controls the whole process of making decisions, not Amazon. Generally, this is how the Credit Card Chargeback Rate is calculated:
Credit card chargeback per order / number of orders in a certain period = Credit Card Chargeback Rate
You can come across with this problem in the following cases:
- The client alleging that they did not receive the order
- The buyer returned the order, but still has not received a refund
- Clients received defective products
Sometimes there can be a fraud chargeback. It means that a stolen card was used in fraudulent ways.
Keep in mind that Amazon is locked on all accounts and can be very strict when it comes to Order Defect Rates. So do your best in keeping your ODR below 1%. We recommend you learn the ropes by going to Amazon Seller University and read all Amazon policies. Put fast shipping in your top priority. Do not ignore notifications from Amazon or clients’ feedback. Always remember that it is never late to start prioritizing your knowledge in Order Defect Rate because as you can see, it has a direct connection with your appearance on Amazon as a seller.