What is Amazon order defect rate (ODR)? The meaning of Amazon’s ODR is like a big puzzle to many sellers, especially newbies. As an Amazon seller, it is crucial to know what it means and, in this article, we will be sharing vital details of ODR. Order defect rate is an important metric on Amazon. This metric is calculated a month after a defect. To learn more about the Amazon Order Defect Rate and the factors that contribute to it.
Amazon Order Defect Rate is the ratio of orders returned or reviewed as defective to a seller’s total number of orders. In order words, it is a performance metric used to rate a seller’s customer service standards. It points out the number of defective orders complained about by your buyers.
To avoid Amazon ODR warnings and improve your defect rate, you must be paying attention to your customer’s needs. It takes about a month for Amazon to calculate the Order defect rate to provide time for defects to process and show in the seller’s account.
What Makes An Order Defective On Amazon?
Your ODR is used by the marketplace giant to measure customers’ experience with you as a seller. Negative feedback received from customers can increase your order defect rate. Now, what makes an order defective? Three major factors contribute to this and they are;
Credit Card Chargebacks
One major factor is credit card chargeback. This affects your ODR and it is a never-ending headache for sellers. Not only do they affect your seller’s reputation, but also include additional expenses. These chargebacks occur when customers dispute a charge on their card and the card issuer processes a refund.
Having feedback will not only tarnish your image as a seller but also lose customers. The negative feedback shared by your customers will affect your order defect rate. It is not possible to satisfy every buyer, however, you can ensure to quickly resolve negative issues by offering possible solutions.
A – Z Guarantee Claims
This is yet another huge factor that affects your ODR on Amazon. Guarantee claims are provided by Amazon and according to its condition, buyers can receive a refund directly from Amazon if the issue can’t be sorted out with a seller.
What Happens If My ODR Is Higher Than 1%?
The perfect appeal allowed by Amazon for an ODR is 1%, so, if it’s more than that, then it’s an issue. If your rate goes beyond 1%, below are three scenarios that could happen;
- Receiving An ODR Warning: If your rate is higher than 1%, Amazon will send a warning. The warning is to alert you about what will happen if you don’t improve the order defect rate as fast as possible.
- Losing Buy Box: If you’re not using Amazon FBA, you could lose the Buy Box. Due to plenty of negative reviews, you can lose the buy box and it will affect the ODR.
- ODR Suspension: This scenario is an extreme measure taken by Amazon and applies to sellers with an ODR higher than 1%.
How To Calculate The Amazon Order Defect Rate
Calculating your order defect rate on Amazon can be done by dividing the number of orders returned by the total number of orders placed for a given period. The result will be expressed as a percentage.
There is all you need to know relating to what Amazon’s order defect rate means. We went further to explain what happens when the defect rate is higher than 1%. To manage and send requests to your customers to leave a review, you can use SageMailer. If you got questions or suggestions, the comment section is open for your thoughts, so, do well to leave them.
Frequently Asked Questions
What is ODR rate?
ODR is the number of customers who purchase defective products within a certain period. Once your defect rate is higher than 1%, then you have to do your possible best to improve it.
What are considered defects at Amazon?
Amazon defects consist of three main factors; negative customer feedback, chargeback, and when order delivery is delayed.
How do I fix my defect rate on Amazon?
To fix or improve your defect rate on Amazon, do the following;
- Reply to every negative feedback on a product intelligently.
- Review your product listings page.
- Monitor your listings.
- Make sure a product description matches what the product can actually do.
- Make fast and free shipping a major priority.
How do you reduce ODR?
To reduce your Order defect rate, give outstanding customer service, dispatch on time, and respond to customers’ queries.
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