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Understanding your Order Defect Rate

December 24, 2021 By Amazowl Team

Seller Performance; Optimize account health Optimizing Account Health through Customer Service Performance Understanding your Order Defect Rate

Seller Performance; Optimize account health

Transcription

ODR or order defect rate is one of the key measures that Amazon has put in place to provide a good customer experience. It’s one of the measures within the customer service performance metrics. As we see here, The ODR is measured independently depending on the type of fulfillment. The dropdown allows you to select either fulfilled by seller if you are fulfilling the orders directly from your warehouse or the FBM model, or you can select fulfilled by Amazon if Amazon is handling the fulfillment through the FBA program.

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As you can also see, the target percentage does not change from program to program and remains under 1%. The order defect rate is a 60 day measurement represented as a percentage. You can see here directly under the measurement the number of orders with a defect and the total orders over the period window.

The ODR includes all orders with one or more defect and is represented as a percentage of total orders during a given 60 day time period. The ODR is a simple calculation by dividing the number of defect orders by the total number of orders over a certain period of time. In this instance, it’s 60 days, so what constitutes a defect?

A order is considered a defect if it results in negative feedback. An A to Z claim that is not denied or a credit card chargeback. Here we can see on this dashboard that at a snapshot you can view the individual defect percentage as well as the number of defects within each defect type. And remember, it is Amazon’s policy that all sellers must maintain an ODR of under 1% in order to sell on Amazon.

And ODR above 1% may result in account deactivation. Next, we’ll review the different types of defects in more detail.

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