Maintaining your Account Health
You’re maybe curious or have heard about Amazon Seller Account getting a warning, suspension, or worse removed. It all goes down with keeping your Account Health in a good rating. The question is how are you going to do it? Let’s find out about that on this blog. This applies to Fulfillment by Merchant as most of these metrics do NOT apply to FBA sellers.
Where to find the Account Health Page?
From your Seller Central homepage, hover your mouse over the “Performance” tab, then click on the “Account Health” option. Then, there you have it, the Account Health page.
What is Account Health?
It is a summary of your metric performances in Amazon. Basically, it monitors how well you are doing based on your customer’s experiences. The thing is that there are metrics percentage that you should meet that are set by Amazon, otherwise Amazon will take actions against your account which can lead to suspension or removal.Account Health has 3 main sections, these are Customer Service Performance, Policy Compliance, and Delivery Performance. Let’s get more into the details by discussing it one by one.
Customer Service Performance
The first section of Account Health is based on ODR which stands for Order Defect Rate. There are 3 key factors that determine this rate, these are Negative Feedbacks, A to Z Guarantee claims, and Policy Compliance.
- Negative Feedbacks are reviews with 2 or less star ratings of a buyer about your product.
- A to Z Guarantee Claims are unresolved conflicts on a product between the buyer and seller which escalated when the buyer reports it to Amazon to get a solution.
There are few ways to avoid Negative Feedbacks and A to Z Guarantee Claims. To do this, you might want to:
- Make sure to respond to messages within 24 hours. Use the “Buyer Seller Messaging” tool to answer customers queries and concerns as soon as possible. You can download the “Amazon Seller” application to receive and respond to messages quickly anytime and anywhere.
- Handle returns as how you want to handle it if you were in your customers shoes. Know that this will greatly affect your buyers review and rating. As well as, the escalation of disputes.
Note: It is important to know “Return Policies” as this will be a great edge to keep your account healthy. You can learn more about these by searching it on the Seller Central search bar.
- Chargeback Claims are handled by Amazon to support sellers. They are the one’s responsible for the merchant’s transaction. It can be avoided if you follow these tips below:
- Ship products only to verified address on the order.
- Use a shipping carrier that provides integrated tracking with Amazon.
These tips will help you defend the chargebacks.
The second section of Account Health is about the responsibility of the sellers to be mindful about Intellectual Property laws and related issues such as the authenticity and conditions of the product they are selling, and other policy violations.
Always see to it that you have all the valid safety compliance documents such as receipts and invoices from credible and legitimate suppliers so that you could increase reinstatements against product related concerns. If you removed items from the sales catalog, follow the appeals process.
Note: You need to look closely on the “Policy Compliance” section from time to time so you can easily spot and deal with any concerns on the account health dashboard. If you fail to do so, it can result in a warning or removal of selling privileges from Amazon.
In the third section of Account health, you can either choose to Merchant Fulfilment for orders or FBA service.
For Merchant Fulfilment you have to maintain the following rates of Late Dispatch by 4%, Pre-Fulfilment Cancel by 2.5%, Valid Tracking over 95%, and On-Time Delivery greater than 97%.
- Late Dispatch Rate this happens when a seller confirmed an order past the expected date of the shipment.
For example, July 9 is when an order was made and supposed to be shipped on or before July 12. July 9 to 12 are the specified date range of the order. If you confirmed the order on July 13 and so on, that’s considered as late dispatch.
- Pre-Fulfilment cancelation rate are orders cancelled by sellers during a week. You can avoid this by monitoring and updating the availability of your inventory, as well as, setting the selling price correctly updated.
Note: Orders canceled by buyers don’t count against the sellers.
- VTR which stands for Valid Tracking Rate are the performance metrics of expected arrival and delivery dates of the orders.
It is best to pick a carrier that reports tracking information to Amazon. Avail Amazon Shipping services by clicking “Buy Shipping” on your orders or might as well see the list of carriers by typing “Valid Tracking Rate FAQ” Seller Central’s search bar.
- OTDR which stands for On-Time Delivery Rate are the performance metrics determined by transit times that you’re allowed to set. These are shipments delivered within the estimated delivery date.
For FBA services, these metrics will not affect your account since Amazon will do the work for you.
Review further notifications by clicking on “Performance” tab, then “Performance Notifications” option. Stay updated!
Now, go ahead and check on your Account Health. Keep it healthy! Thank you! See you on our next blog!