On Amazon, the global e-commerce giant, sellers need to focus on and maintain several metrics to ensure the smooth running of their business. One of these metrics, Amazon ODR (Order Defect Rate), is a crucial one that directly affects a seller’s performance and reputation on the platform.
What is Amazon ODR?
Amazon ODR is a key performance indicator used by Amazon to measure a seller’s business performance. It reflects the quality of a seller’s service and customer satisfaction by counting the defects that occur in their orders over a certain period of time.
What metrics are included in Amazon ODR:
1.Credit card refunds
If someone requests a refund, it can affect your amazon odr. people request refunds for a variety of reasons, such as fraud, poor service, receiving damaged merchandise, or never receiving a refund for a returned item. If a credit card refund is due to your customer service, it can affect your Amazon ODR.
2. Buyers making A to Z claims
Amazon offers an A to Z guarantee for people who buy products from companies that sell on the marketplace. If delivery is not timely or the item is in poor condition, the user can file an Amazon Mall transaction claim. When users make these claims, it can have a negative impact on your Amazon ODR.
3. Bad Reviews
Whenever your audience leaves negative feedback, it is an indication of a poor customer experience, and a poor customer experience leads to more negative feedback and higher Amazon ODR.
This article goes into more detail on how to deal with bad reviews:
If you don’t want to just read these text interpretations, you can click on the video below to help you understand more quickly about Amazon ODR：
Calculation of Amazon ODR
The ODR calculation covers three types of order defects:
- Negative Reviews: Includes 1- or 2-star reviews received by sellers.
- Disputes: Disputes or A-to-z guarantee claims filed by customers against an order.
- Refunds: Includes full refunds due to the seller.
The formula for Amazon ODR
The number of negative reviews + number of disputes + number of refunds total number of orders x 100ODR = total number of orders number of negative reviews + number of disputes + number of refunds x 100
If you want to know more about it, click on Amazon Seller Center.
Importance of Amazon ODR
Amazon takes ODR very seriously as it directly reflects the quality of the seller’s service and customer satisfaction. A high ODR can lead to sellers being subjected to punitive measures such as warnings, restrictions or account closures. On the contrary, maintaining a low ODR can help boost a seller’s reputation on the platform and gain more exposure and sales opportunities.
How can I lower my ODR?
To reduce ODR, sellers can take the following steps:
- Handle customer issues in a timely manner: Respond to customer issues and complaints in a timely manner and provide solutions that satisfy customers.
- Improve product descriptions and pictures: Ensure that product descriptions are accurate and detailed, with clear pictures, to avoid customer complaints due to inconsistencies between products and descriptions.
- Reasonable delivery and processing time: Ensure delivery according to the promised time to avoid dissatisfaction due to delayed delivery and processing time.
- Optimize after-sales service: Provide high-quality after-sales service to help customers solve problems and reduce returns and disputes.
Overall, understanding and effectively managing ODR is one of the keys to successful business for Amazon sellers. By providing excellent products and services, sellers can reduce ODR, improve user experience and thus stand out in the competitive e-commerce market.
Find a reliable Amazon FBA forwarder can help you take the first step towards selling successfully on Amazon.
