Amazon, an e-commerce platform is known to be a customer-oriented store. Making customer satisfied with your products and services is the most important factor in becoming a successful seller.
- Remember; Don’t make customers unhappy!
Amazon has 11 quantitative customer satisfaction indicators that you must know. These indicators are also issuing that sellers on other platforms need to pay attention to, because these indicators are from the perspective of customers and will affect the conversion rate and transaction amount of actual consumption and are also sellers’ success the key or not.
1. Amazon Order Defect Rate (ODR)
Indicators for missing orders include the ratio of negative reviews received from 1 to 2 stars, A-to-Z guarantee claims, and credit card declines to the total orders.
Amazon Negative reviews will not be counted if the customer is requested to remove them, but the A-to-Z guarantee will be recorded as missing regardless of whether the application is successful or not, because Amazon attaches great importance to the customer’s consumption experience and hopes to let the customer purchase the status and delivery of the goods Both can be guaranteed, and sellers have to take the responsibility to find the problem. Although it sounds like a one-sided approach to customers the number of A-to-Z guarantee claims is still small. There may be many reasons for the customer’s credit card refusal, including product defects, not receiving the goods, returning the product without receiving a refund, and the credit card being stolen.
Sellers should pay attention to ODR not exceeding 1%, which will have an adverse effect on your account. In severe cases, the account may be cancelled by Amazon.
2. Amazon Pre-fulfillment Cancellation Rate
Orders/total orders cancelled by the seller before shipment
All reasons for the seller to cancel the order before shipment will be credited, excluding the order cancelled by the buyer on Amazon. This indicator can be seen from the seller’s inventory management. When a customer places an order, the manufacturer must have enough inventory to ship immediately. The customer places an order but the manufacturer has no inventory and cancels the order, which will certainly make consumers unhappy. However, if the customer places a wrong order and requires the seller to cancel, the seller can report to Amazon that it will not be counted.
Sellers must at least lower the cancellation rate before shipment to 2.5%
3. Amazon Late Shipment Rate
The shipment delay rate refers to the delayed shipment order/total order. (The definition of delay depends on the number of days you fill in Handling Time when you upload the product. The system defaults to 2 days.)
- The number of days here refers to working days, not including Saturdays and Sundays
- Delivery delay rate must be kept below 4% at least
4. Amazon Perfect Order Percentage (POP)
The proportion of orders that were perfectly received, processed, and delivered in the past 90 days. There are no orders/total orders resulting from A-to-Z guarantee applications, order cancellations, delayed shipments, buyer-initiated messages, negative reviews, refunds, and credit card declines.
These indexes include Order Defect Rate (<1%), Pre-fulfillment Cancel Rate (<2.5%), Late Shipment Rate (<4%)
Common reasons for imperfect orders include;
- Incorrect or unclear product detail page
- Delayed shipment
- Invalid or missing tracking number
- And order cancellation
Amazon recommends POP to be more than 95%
5. Amazon Return Dissatisfaction Rate
This is a new indicator added by Amazon in November, including 1. The seller did not respond to the buyer’s request for a valid return within 48 hours. 2. The seller’s refusal to return is invalid. 3. The percentage of negative reviews returned by the buyer to the total number of returns.
6. Amazon Policy Violations
Violation of Amazon’s policies is where sellers need to be most careful. Amazon attaches great importance to intellectual property rights. If a buyer or competitor complains about selling counterfeit goods or fake goods, the sales authority of the account will be revoked if a certain amount is accumulated.
7. Amazon On-Time Delivery Rate
The on-time delivery rate shows the proportion of the buyer who received the goods within the estimated time.
8. Amazon Valid Tracking Rate
The effective tracking rate requires 1. Have a tracking number 2. If the tracking number is valid, it can be tracked 3. The tracking number is matched with the logistics service provider.
Amazon requires sellers to have a valid tracking number for 95% of packages in the two categories of shoes and office supplies.
Research shows that the effective tracking rate is higher than 98% and the on-time delivery rate is higher than 97% will effectively reduce the processing and delivery time of goods, increase the conversion rate of customer purchases and the turnover of goods (Gross Merchandise Sales, GMS)
9. Amazon Contact/Seller’s response time
The seller should reply to the message sent to us by the buyer within 24 hours. This time includes weekends and holidays.
Amazon’s research shows that sellers’ response time within 24 hours will reduce negative reviews by 50%.
10. Amazon Order refund rate
The order refund rate refers to the rate at which the buyer is refunded. It may indicate that the seller needs to cancel the buyer’s order when the product is insufficient in inventory.
11. Amazon Customer Service Dissatisfaction Rate
The customer dissatisfaction rate refers to the rate at which the buyer’s message is not satisfied by the seller.
When the seller responds to the buyer’s question, Amazon will immediately ask the buyer whether the seller’s answer solves your problem. If the buyer answers No, it will be listed as dissatisfied with the customer service.
Customer dissatisfaction rate should be kept below 25%
The above 11 customer satisfaction indicators are a good checklist for sellers to check where they have not done well or can be more diligent. Merchants engaged in e-commerce should uphold the spirit of respecting customers and continuing to improve themselves to sell better and sell more.