Let's face it one of the hardest challenges facing a seller today is having your account suspended – Suspension means having your business interrupted and your livelihood jeopardized.
Understanding Amazon Customer-Centric Philosophy helps keep your account Order Defect Rate (ODR) in check and enables you to keep your account safe.
If you have caused a customer to be unhappy or can potentially create unhappy customers, Amazon comes down hard and will suspend your account. Amazon stands up to its Customer-Centric Philosophy policy and is proud of it. This philosophy is about ensuring that a customer has a positive buying experience, before and after a sale. Amazon wants customer loyalty and returning business. Customer commitment happens when a customer has a positive encounter.
Keep in step with Amazon’s philosophy by keeping your Order Defect rate (ODR) under 1%. Adopt a Customer-Centric Policy into your business. In other words, make sure your customer is smiling.
ODR measures your ability to provide a happy customer experience. Amazon will not allow you to sell on its platform if you have an ODR that is higher than 1%. The ODR is a percentage measurement that is made by Amazon over sixty days. It is the number of orders that have received a negative ODR, divided by the total number of orders for that period. In keeping with its philosophy, Amazon assists its sellers by helping them maintain a low ODR.
The three factors that impact on your percentage ODR are Negative Feedback Rates, A-to-z Guarantee Claim Rates, and Credit Card Charge-back Rates. These factors are measured continuously and checked by Amazon.
Amazon demands that you find out the reason why you received negative feedback and expects you to deal with it by involving the buyer in the process towards reversing this. To help you, Amazon provides a Feedback Manager –look for this under the Performance tab on your dashboard and work through the required fields until the customer is smiling again. In cases where you believe that a customer has given you the wrong feedback, and you can prove this, Amazon agrees to assess the feedback. If your request complies with Amazon removal requirements, they will remove the feedback. (Refer to the Amazon Feedback Manager where you can request that Amazon delete the negative feedback).
A-to-z Guarantee Claims cover the timely delivery and the condition of the purchase. If either is not up to standard, the customer can report to Amazon and can claim a refund through Amazon. The A-to-Z Guarantee Claims Page allows you to manage and act on these claims.
Your Credit Card Charge-back Rate also affects your ODR. In credit card, charge-back, the credit card issuer decides, not Amazon. Credit card charge-backs occur when a customer says that he/she did not receive an item, or, when a customer returns an item. A claim that an article is damaged or defective is another cause of credit card charge-backs. Once the credit card company concedes to a complaint and makes a charge-back, your ODR percentage will increase.
A credit card charge-back falls under two categories, either 'fraud' or 'service'. In cases of 'fraud,' the buyer claims that s/he did not purchase in the first place. These cases are often related to stolen credit cards and fraudulent deals. In 'fraud' cases, your ODR is not affected. A 'service' charge-back is when a buyer makes a claim to the credit card issuer regarding a problem with the purchase. In helping keep ODR rates low, Amazon comes to the seller’s assistance and has provided a 'Respond to a charge-back claim' tab.
A low ODR means customer satisfaction; this is Amazon's end goal. It is up to you to maintain a low ODR by integrating a Customer-Centric-Policy when selling under the Amazon banner.