Order Defect Rate (ODR) is one of the most significant performance assessment metrics used by Amazon to calculate the performance of the seller. Amazon measures ODR by dividing the number of orders with the negative defects (described below) by the total orders during a provided 60-day time period. Order Defect Rate is represented in % (percentage).

According to Amazon policy, sellers have to maintain an ODR below 1%. If the ODR is more than 1% then it will result in account deactivation.

Following are the three components that are used to calculate ODR:

1. Negative Feedback Rate
2. A-to-z Guarantee claim rate
3. Credit Card Chargeback Rate

1. Negative Feedback Rate

It is significant to dispatch orders on time and to converse and resolve the issues faced by buyer instantly as per the above discussion. If you did not handle that proactively then it will consequence in buyer giving negative feedback. If your negative feedback rate is more than 5% it will influence on your account health performance.

The Negative Feedback Rate is measured by the number of orders which have received negative feedback divided by the number of orders in the relevant period.

2. A-to-z Guarantee Claim Rate

When a client does not obtain the package in the expected time and after contacting seller regarding the package and the customer did not get any solution then they will open A-to-Z claim so that the issue been forwarded to Amazon. It also covers the conditions in which the item or package arrives in and the total time of delivery.

A-to-z Guarantee Claim Rate is measured by this formula:

Following are the types of claims that impacts ODR:

• Claims which were granted, regardless of who funded the claim
• Claims for which you offered an order refund after the claim was filed.
• Claims for which you or Amazon cancelled the order
• Claims which are under review.

3. Credit Card Chargeback Rate

Credit Card Chargeback is similar as A-to-z claim except that the credit card issuer processes the claim and makes the decision and not Amazon. These claims are carried out generally by fraudulent buyers.

How to Improve ODR (Amazon Order Defect Rate )?

If your ODR is more than 1% then you will lose the Buy Box. Not only that but it will also lead to account suspension. To reinstate the account, a good plan of action have to be submitted to Amazon within 17 days.

To prevent account suspension, it is suggested to also maintain the ODR. It is mostly effected by A-to-z claims and negative feedback, that is why it is significant to carefully check every A-to-z claim and customer feedback and filter them. Find out the common causes why you are getting claims and negative feedback and improve that issue. The motto is to try to track down reoccurring problems and rectify them instantly before it results in long-term damage to the account.

Following are few key segments that can help to keep Order defect rate low:

• To describe item correctly
• To sell high-quality items
• To pack the product excellently
• To ship the item using an authentic shipping company that have a tracking number available
• To respond buyer’s messages quickly

It is always best to check the performance metrics timely so that the order defect rate is maintained. Visit our site at amiwap for further information.