Order Defect Rate
The Order Defect Rate (ODR) is a performance metric that Amazon uses to rate the seller’s customer service standards. The ODR is calculated based on the number of times the negative metrics (below) were incurred divided by the number of overall orders received within a given period of time. This, in conjunction with other Seller Performance Measurements, will determine the Seller’s Rating, and it can also result in the revoking of seller privileges on Amazon.
How an Order Defect Rate Is Determined
An order is considered to have a defect if one or more of the following negative signals is received:
- Negative feedback left by buyers: This will be calculated in relation to the overall number of orders received during a given period of time to get the seller’s negative feedback rate.
- An A-to-Z guarantee claim that was registered by the buyer: All claims regardless of status and resolution are calculated within this metric.
- Service credit card chargebacks issued: Chargebacks are credit card charges that are disputed by the buyer. This can either be because of fraudulent claims or because of unsatisfactory service claims. The former refers to a buyer who claims to have not placed the order at all. This can happen in the event of a stolen credit card. The seller is protected by Amazon against fraudulent chargebacks. Alternatively, service chargebacks are issued due to unacceptable service complaints such as receiving damaged goods, not receiving a refund for returned goods, or never receiving an order in the first place. These charges are settled by the credit card company. The chargeback rate will be determined by dividing the amount of chargebacks divided by total the number of orders that were placed over a specified amount of time.
How are Metrics Measured
- Multiple negative signals on one order will only count as one defect. For example, if a buyer leaves negative feedback and also issues an A-to-Z guarantee claim on the same order, both will be registered in the seller’s metrics as one defective order and not two.
- All claims are calculated within the Order Defect Rate, even claims that are withdrawn or not granted. This is because the ODR is an attempt to help the seller clarify and correct problem areas within his or her overall customer service. If an issue arises that warrants a complaint, it should be viewed as a signal from the buyer to the seller that there is something that needs to be reviewed and fixed for future transactions.
- Because registering complaints, chargebacks and feedback will take a few weeks from the order, rating reports are withheld until at least 30 days after an order is placed, often closer to 90 days. This is done to give an accurate representation of the seller’s performance level.
Receiving a negative rating will not adversely affect a seller’s account per se. However, consistently scoring or maintaining a poor performance rating may result in the revocation of seller privileges. Even if privileges are not suspended, the seller’s rating is listed on each product listing, and a low status will reflect poorly on the seller. Sellers are encouraged to keep their ratings high so that they can always give over a positive experience for interested buyers.