The Amazon Order Defect Rate (ODR) is a percentage of A-to-z claims including negative feedback, service chargeback, divided by the total number of orders in stipulated time. Amazon is very strict on seller ODR. As per Amazon’s policy, ODR should be below 1%.
If your Amazon ODR is above 1% for a consecutive period of time, then you will be at risk. You lose the Buy Box automatically for all of your products, except FBA products. Because FBA products are shipped by Amazon itself so they are eligible for the Buy Box. Because of your faulty orders, Amazon’s reputation and Buy Box both will be at risk. That is the main concern for Amazon.
If the ODR is higher than 1% then the worst that can happen is that Amazon can suspend or terminate the seller account straight away and in order to pay the refund it may hold the payments also, no matter how big or successful the seller is.
The ODR suspended sellers get 17 days to appeal for reinstatement with a good plan of action. You may be terminated when your ODR is strikingly above 1%, or there are some other serious issues like late deliveries or cancellations, your account was suspended earlier and reinstated or you failed to submit a plan of action during a suspension. If you have a history of suspension, then it can be challenging to be reinstated on Amazon.
Amazon reviews the performance of each and every seller account backdating 12 months. It will lead to termination of the account whose Amazon Amazon Order Defect Rate was above 1% for a couple of months or if they also had cancellations or late deliveries.
Measures to Avoid Suspension
All Amazon sellers can use Amazon Dashboard to review their performance at any time. By clicking on Performance Over Time sellers can monitor their performance over 12 months, both in percentage and in value. This is exactly how Amazon monitors sellers’ performance. This tool is very much helpful to monitor, control and take preventive action for the seller accounts.
Your is mainly driven by A-to-z claims and negative feedback. Always read carefully all A-to-z claims and customer feedback and filter them. Evaluate what’s impulsive. Accordingly, find a solution, work directly to overcome this so that it can not impact on your rating.
It is advisable to register your products in Amazon FBA. Amazon is very strict when it comes to protecting the customer experience. Using FBA you can meet Amazon’s expectations easily. FBA can help you to decrease your ODR very quickly, even if you lose Buy Box eligibility because of your higher ODR. By decreasing your ODR below 1%, it will make all your products become eligible again. FBA can be used for a small group of your best selling products also, for a limited period of time or for the entire product range. Above all it’s your business, so you have to carry it in such a way so that it can reach the top.