How Crucial is Order Defect Rate(ODR) for Online Sellers ?
Order defect rate (ODR) is one of the most important metric Amazon uses to assess Seller Performance. One of the key parameters considered by Amazon to determine Buy Box Eligibility
How is ODR Calculated:
Is a ratio of number of orders with defects from total orders in a period.
If you are thinking what are defects, these are the various types.
Cancellation Defect: could be due to inventory shortage, unable to fulfill the order on time.
Return Defect : Number of Returns because of customer unsatisfaction.
Delivery Defect : No able to send on time, improper packing.
Customer Complaints: Not meeting customer expectation.
Item Rating : Incorrect ratings gathered.
What happens When ODR Reaches to <1%
You lose the Buy-Box feauture which is sales contributer automatically
Amazon suspends or terminates your account
What can I do when my ODR reaches > 1%
Your ODR is mainly driven by the A to Z Guarantee Claims and Negative Feedbacks. We strongly recommend sellers to carefully read all the A to Z Guarantee Claims and Customer Feedback they have received and work towards resolving them.
Assess what is leading them. Is it late shipments, cancellations, communication delays or not meeting expectations?
If you notice recurring problems work straight away to fix so that it will not impact your rating.
If you are using Amazon Health Dashboard you can review your performance at any time. ODR shown under Customer Service Performance.
How to maintain Low ODR ?
Keep Track of Your ODR : Keep checking the metric on Dashboard. Better metrics always motivates to do well.
Sell high quality products: Maintain the quality and build the trust of your brand. Quality has been the key to success.
Pack your products well while shipping: Be carefull in packing while shipping if you are using your own trasporation service, its your responsibility. Being more resposiblie makes eveyone happy.
Best way is to opt for FBA(Fullfilled by Amazon): As shipment method, if you are thinking why here you go.. Amazon comes and picks up your produts from you and maintains them in Fullfillment Center and takes the responsibility of shipping on time. Leading to customer satisfaction.
Responding promptly to buyer questions :If Seller is not responding Buyer questions on time, Buyer will defintely escalate this issue to Amazon which will lead to customer complaints. Impacting your ODR. You see how its interconnected ,be carefull.
Make sure you get Positive feedback as much as possible: Good Rating is Good Sale. Work towards customer satisfaction so that you get good rating.
