Key performance indicators (KPIs) are used to set goals, determine strategies to reach those goals, and evaluate performance. Having clear and quantifiable measurements for success helps keep individuals and companies focused.
Have you ever considered using KPIs to measure your Amazon seller reputation? Fortunately, it’s easy to do! Amazon provides data about how sellers view your business and your products that can be used to measure your performance.
Let’s explore the top metrics to consider when evaluating your Amazon seller reputation.
The Amazon seller rating system allows buyers to leave feedback regarding your performance as a third-party seller on Amazon by selecting a star rating between one and five stars, with five indicating the best experience. They can also choose to provide written feedback comments along with the star rating.
Amazon seller feedback is specific to the buyer’s experience with you as a seller. It should not be about the products you sell, although sometimes buyers leave comments about both the seller and the product they purchased in the same rating. Seller feedback is based on the buyer’s experience with your:
Amazon also asks if the buyer would purchase from you again and what could have been done to improve their experience.
Your average seller feedback rating is displayed next to your store name on your seller profile page. It’s also shown when a buyer clicks on other offers for a shared listing from the product detail page. Your store name will be displayed along with your average seller feedback rating.
Seller feedback is factored into your Account Health Rating. If buyers are unhappy with you as a seller, Amazon will take notice. A continually low seller feedback rating can impact your ability to participate in Amazon programs and could even prevent you from selling on the platform.
If buyers express dissatisfaction with your item packaging, customer service, or other issues related to your performance as a seller, it’s time to make changes. Work to resolve any outstanding problems and implement new processes to avoid having the same issues arise in the future. For example, negative seller feedback related to your packaging could signal that you need to rethink your packaging material.
Like seller feedback, Amazon product reviews are provided on a one-to-five-star scale, with five being the best. Amazon reviews affect how and where your products appear in Amazon searches. They also influence shoppers. Since your products can’t be evaluated in person, Amazon reviews provide additional details for consumers.
When evaluating your seller reputation, one of the most important things to look for is how your products are performing on Amazon. View your average product review rating for each product you sell. Then look at the best reviews and the worst reviews to see what’s working and what needs improvement.
You should regularly monitor your Amazon reviews to ensure that buyers are happy with your product quality. Checking out your reviews and the reviews for your top competitors can also spark ideas for new features, product enhancements, or even new products to add to your lineup.
Amazon measures the customer experience you provide as a seller with the Order Defect Rate (ODR) metric. This is the percentage of your total orders within the past 60 days that have one or more defects. Defects include negative seller feedback, credit card chargebacks, and/or a successful A-to-z Guarantee Claim. You are required to keep your ODR under 1%.
Related reading: How to Handle Amazon A-to-z Guarantee Claims
Your Amazon Best Sellers Rank (BSR) is also referred to as sales rank. This is a score assigned to products on Amazon based on previous sales data. Amazon automatically calculates BSR based on recent sales as well as historical sales for a product in comparison to other products in the same category. You can see a product’s BSR on the Amazon listing page for that item.
The higher your product’s BSR, the better. Getting more reviews can help improve a product’s sales rank.
If you rely on Amazon FBA to fulfill some or all your orders, your Inventory Performance Index (IPI) score is an important piece of your seller reputation. This number is calculated based on your excess inventory rate, sell-through rate, stranded inventory rate, and in-stock inventory.
Having an IPI score at or above Amazon’s current threshold keeps your account in good standing and prevents you from experiencing FBA storage restrictions. It is a major factor in the new FBA capacity management system, which determines how much FBA storage space you can use.
Returns can really hurt your bottom line. Between restocking fees and returnless refunds, the price of doing business can really add up. Too many returns can damage your account health. A high return rate is a red flag that buyers aren't satisfied with your products.
You can see your FBA return rate in the FBA customer returns report in Seller Central. You can see your overall refund rate under Seller Performance. Amazon also has a Returns Performance dashboard to help if you manually manage Amazon returns.
Related reading: How to Lower Your Amazon Return Rate
Regularly monitoring these KPIs can help you pivot and make changes as needed to keep your customers happy. FeedbackFive by eComEngine is designed to make managing and improving your Amazon seller reputation easy. You can request feedback and reviews for your Amazon orders, get alerts for new ratings, and even analyze the ratings you've received to identify trends.
The best way to get feedback and reviews is to ask for them. FeedbackFive automates the process based on your desired settings, making it easy to customize a message for a specific product or send the Amazon Request a Review message for each of your orders. Exclusion settings allow you to automatically avoid sending requests based on your criteria.
You can test drive FeedbackFive with a free trial today! Check out this short demo to see how it works.
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