Order Performance program policy
- Oliver Piroska
- Sep 23, 2023
- 2 min read
This passage provides an overview of Amazon's Order Performance policies, which are designed to ensure that sellers meet minimum performance standards related to fulfillment, delivery, and customer service. These policies aim to maintain a positive shopping experience for Amazon customers. Here are the key points regarding these policies:
**Order Defect Rate (ODR):**
- ODR is a measure of a seller's ability to provide a good customer experience.
- It includes various types of order defects, such as negative feedback, A-to-z Guarantee claims that are not denied, and credit card chargebacks.
- Sellers are required to maintain an ODR under 1% to sell on Amazon. An ODR above 1% can lead to loss or restriction of selling privileges.
**Cancellation Rate (CR):**
- CR applies to seller-fulfilled orders and includes all seller-canceled orders as a percentage of total orders within a 7-day period.
- It does not include customer-initiated cancellations using the order-cancellation options in their Amazon account.
- Sellers must maintain a CR under 2.5% to sell on Amazon. A CR above 2.5% may result in loss or restriction of selling privileges.
**Late Shipment Rate (LSR):**
- LSR pertains to seller-fulfilled orders and includes orders with shipping confirmations completed after the expected ship date.
- It is represented as a percentage of total orders over both a 10-day and 30-day period.
- Sellers are required to maintain an LSR under 4% to sell on Amazon. An LSR above 4% can lead to loss or restriction of selling privileges.
**Valid Tracking Rate (VTR):**
- VTR applies to seller-fulfilled orders and measures shipments with valid tracking numbers as a percentage of total shipments within a 30-day period.
- Amazon customers rely on tracking numbers to track their orders, and VTR reflects these expectations.
- Sellers must maintain a VTR greater than 95% for their shipments. Falling below this threshold may result in restrictions on selling non-FBA items in a specific category and affect eligibility for Premium shipping.
**On-Time Delivery Rate (OTDR):**
- OTDR evaluates the percentage of shipments delivered by their estimated delivery date (EDD) for seller-fulfilled orders.
- It influences the transit times sellers can offer and may improve conversion rates.
- While it is recommended to maintain an OTDR greater than 97% for a good customer experience, there are no consequences for not meeting this target.
**Addressing Customer Feedback:**
- Certain negative performance metrics result from customer feedback.
- Sellers are encouraged to use the Feedback Manager or Buyer-Seller Messaging Service templates to address customer feedback and resolve issues.
These policies and performance metrics are important for sellers to monitor and maintain to ensure a positive selling experience on Amazon. Failure to meet these standards may lead to consequences, including loss or restriction of selling privileges.
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