Changes to Order Defect Rate Calculation
by Becky Trowbridge, on November 14, 2017
As reported by eCommerceBytes, Amazon.com, Inc. (“Amazon”) recently changed the way the Order Defect Rate (ODR) is calculated.
A-to-z claims that were decided in the merchant’s favor or withdrawn by the customer are being counted due to the change. This has negatively impacted some sellers, who have found that their ODR has doubled or tripled since it was implemented. It remains to to be seen whether this change becomes permanent and becomes part of the official policy regarding how the ORD is calculated.
What is Order Defect Rate?
Amazon tracks seller performance metrics to ensure a high-quality experience for buyers. There are three metrics included in this calculation: ODR, pre-fulfillment cancellation rate and late shipment rate. The ODR shows the percentage of a seller’s orders that have received an A-to-z claim, negative feedback or a service chargeback, divided by the number of orders in a set period. Amazon uses this number to measure overall seller performance. The philosophy behind the ODR is that sellers who work to resolve these issues are taking care to resolve buyer issues and inquiries.
ODR and the Buy Box
It’s in every Amazon merchant’s best interest to keep the ODR as low as possible. Amazon takes these metrics very seriously. Providing an exceptional customer experience is the standard. Not only that, the ODR is factored in to help determine Buy Box eligibility, along with other seller performance metrics. If a merchant’s ODR reaches 1%, the ability to win the Buy Box is lost until the ODR is below 1% again.
Proactive Customer Service
Resolving buyer issues before they become official complaints is just one of the many benefits of using a reputation management tool like FeedbackFive. An effective seller feedback solicitation message can help merchants ensure that each buyer experience is a positive one.
“Providing proactive customer service helps Amazon merchants succeed in a competitive space. FeedbackFive emails are designed to capture buyer complaints before they result in a negative feedback or A-to-z claim,” said Jay Lagarde, eComEngine founder and president.
Identifying trends such as packaging issues that lead to product breakage or a misleading product listing can help sellers resolve problems that lead to complaints right away. Text or email alerts for negative feedback enable sellers to take immediate steps to turn a sub-par experience around. This can make all the difference when it comes to keeping your ODR low.
Manage Your Reputation with FeedbackFive
Managing your Amazon seller reputation can take hours each day. FeedbackFive’s time-saving features and at-a-glance metrics make it easy to monitor feedback and more. Try it out with a 14-day free trial today!