What is the order defect rate?
The Order Defect Rate (ODR) is a key measure of your ability to provide a good customer experience. It includes all orders with one or more defects represented as a percentage of total orders during a given 60-day time period.
Here are the recommended numbers you’ll want to see on your account:
- Late shipment rate: Below 4 percent
- Pre-fulfillment cancel rate: Below 2.5 percent
- Order defect rate: Below 1 percent
If your account hits these numbers or goes above, it will result in a suspension or closure of your Amazon store.
What makes an order defective?
- Negative Feedback Rate: Whenever your customer leaves negative feedback, it is a poor customer service reflection. Poor customer experience will lead to negative feedback and high ODR.
- A-to-z Guarantee Claim Rate: Amazon offers A-to-Z guarantee for his customers who buy products from companies that sell on the Amazon Marketplace. If the item does deliver on time or the item isn’t in good condition then the customer can make an A-to-z claim. When customers open A-to-z claim, it negatively impacts your ODR.
- Credit Card Chargeback Rate: If customer request to get their money back, then it can affect your ODR. Customer Request money back for multiple reasons, such as bad service, fraud, receiving damaged goods, or does not receive a refund for a return. If the credit card chargeback it will impact your ODR.
Amazon’s policy is that sellers maintain an ODR under 1% in order to sell on Amazon. An ODR above 1% may result in account deactivation.
How to improve your Amazon ODR?
There are a couple of ways where you can prevent your account from getting to the point of suspension due to a poor ODR.
- RESPOND TO ALL NEGATIVE FEEDBACK AND A-TO-Z CLAIMS: A-to-z claims and Negative feedback have a big impact on your ODR so respond to all A-to-z claims and negative customer feedback. Firstly you need to find out why someone filed a claim. There can be a couple of reasons including late shipments, cancellations, miscommunication, or unmet expectations.
- PREPARE FOR THE HOLIDAYS: Amazon sellers risk a high ODR due to late shipments, many sellers get suspended. To prevent this issue use Amazon’s holiday mode. In this mode, you can set custom quantities for the holiday months to prevent overselling this option allows you to handle the number of orders so you don’t get bogged down
- REVIEW YOUR LISTINGS: check your listings to ensure that you don’t have a high ODR. make sure your listings are properly filled out and provide all the information your audience needs.
- FIND SUPPRESSED BUY BOX LISTING: Find suppressed buy box listings on amazon and me-too on it and try to undercut other sellers selling price to get orders as much as you can.