Customer Metrics FAQs
Below you’ll find an exhaustive list of frequently asked questions relating to the topic of customer metrics, a rating system that Amazon uses to measure the quality of service that sellers provide within the marketplace.
What Are Customer Metrics?
Customer metrics do not, in fact, reflect anything about the buyer. Instead, they are measures of customer satisfaction that a seller achieves based upon performance. Amazon provides the seller with an individualized page, complete with a list of these buyer and performance-generated metrics. This page is for the benefit of the seller and cannot be viewed by potential buyers. It is helpful for a seller to see these stats, however, so that they may check their status and discover any weaknesses in their interactions with the customers. What Goes into the Customer Metrics? There are several factors that are considered when calculating a seller’s level of performance. These include:
- Perfect Order Percentage: POP is a metric that all sellers should strive to achieve top marks in. To obtain a “Perfect Order” label, the order must be fulfilled without any negative marks against the seller. A negative mark could refer to a refund granted, an A-to-Z claim, a cancelled order, an order that was shipped late (regardless of the reason), a negative comment, and any kind of chargeback. The percentage is calculated based on the number of flawless orders in relation to the overall orders received within a certain timeframe.
- Order Defect Rate: Similar to the POP, this is also known as ODR, and it is computed based on the number of orders that have an Amazon-defined defect in relation to the overall number of orders received during a specific period of time. A defect is defined as a guarantee claim, negative comments or chargebacks made. See Seller Performance Measurement for an in-depth definition and discussion of each of these defects.
- Rate of Cancellation Prior to Order Fulfillment Metric: This is based on the stock rate of merchandise sold and the number of orders that were received.
- Shipping Tardiness: Shipping items late for whatever reason is a generally unacceptable practice. Sellers should keep a careful accounting of inventory to ensure that an order is never delayed because an item is out of stock.
- Refund Percentages: Refunds are also calculated and considered based on a specific time period. The assumption is that a refund is being given because there was some miscommunication, error made or unsatisfactory business practice, all of which are not good signals for optimal performance measurement.
What is an Acceptable Performance Rating?
All sellers should strive for optimal performance at all times. A positive rating is 1%, but higher than this is still acceptable so long as improvements are made regularly. On the other hand, sellers who demonstrate superior performance consistently will be rewarded with a beneficial feedback rating and possibly an appearance in the Buy Box. Positive feedback ratings will be displayed with every listing from the seller and reflects optimistically upon the account in general.
How Can I Improve My Rating?
If a seller receives a low rating for overall performance, he can raise the status by reading and implementing the tips on how to improve seller ratings.
What is the Account Status?
An Amazon Seller Account constantly maintains one of three statuses. These are:
- Active: This is the ideal account status. An active account status indicates that the seller has the ability to sell merchandise and receive payments through an Amazon site.
- Under Review: This status means that Amazon is reviewing the seller account for various reasons. The seller may continue selling through an account that is under review, but funds will be frozen until the process is completed.
- Suspended: This status is given to sellers who have violated one of the Amazon terms and conditions or have displayed unacceptably poor performance ratings. An account with a suspended status will neither be allowed to conduct sales or claim any payments until the status is removed.
Why Don’t These Metrics Match the Metrics in Other Areas?
Since complaints or issues are usually not processed for at least a few weeks after an order is placed, if compared to recent orders, the performance metrics shown may not reflect a realistic picture of the seller’s rating. Amazon generally waits a minimum of 30 days before computing metrics, and often this will result in a discrepancy between order fulfillment and performance measurements. In addition, because results are measured based on a given period of time, the performance rating will not coincide with currently displayed information, which is based on more present metrics.