Understanding Amazon Account Health: Key Metrics Every Seller Must Know

Amazon’s Account Health page in Seller Central plays a critical role in helping third-party sellers monitor their performance and ensure compliance with Amazon’s policies.

Maintaining a healthy account is crucial to keeping your selling privileges on Amazon, and failure to meet certain metrics can lead to account warnings, suspension, or even removal.

But what exactly is Amazon Account Health, and why does it matter so much for sellers?

What Is Amazon Account Health?

Amazon Account Health is a system designed to ensure that sellers maintain high levels of product quality and customer service. Amazon imposes specific metrics and guidelines that sellers must follow to avoid penalties like warnings or account suspension.

The Account Health page in Seller Central highlights the most important performance metrics that directly impact your ability to sell on Amazon. Sellers are expected to comply with these targets, or risk losing their selling privileges.

How to Check Your Amazon Account Health

To view your Account Health metrics, log in to Seller Central, navigate to the Performance Menu, and select Account Health.

Path: Seller Central > Performance Menu > Account Health

On this page, you’ll find an overview of how well your account complies with Amazon’s performance targets, which are broken down into three main areas:

1. Customer Service Performance
2. Product Policy Compliance
3. Shipping Performance

These metrics are primarily measured by your Order Defect Rate (ODR), which is a critical factor for maintaining a healthy seller account.

The 7 Key Metrics for Amazon Account Health

Amazon Account Health includes several important metrics that every seller must monitor to avoid penalties. Here are the seven key metrics you need to focus on:

1. Order Defect Rate (ODR)
   The ODR measures the percentage of orders that result in negative feedback, an A-to-Z Guarantee claim, or a chargeback. Your ODR must stay below 1% to avoid account suspension.

2. Cancellation Rate
   This metric applies to seller-fulfilled orders (FBM). It measures the percentage of orders canceled by the seller within a 7-day timeframe. Keep your cancellation rate below 2.5%.

3. Late Dispatch Rate (LDR)
   The Late Dispatch Rate measures the percentage of orders where the shipping confirmation is posted after the expected ship date. Your LDR should be under 4%.

4. Valid Tracking Rate (VTR)
   Applicable to FBM orders, the Valid Tracking Rate measures the percentage of orders with a valid tracking number. Sellers must maintain a VTR above 95%.

5. On-Time Delivery Rate (OTDR)
   The On-Time Delivery Rate shows the percentage of orders that arrive at their destination by the estimated delivery date. This metric should stay above 97% for FBM sellers.

6. Return Dissatisfaction Rate (RDR)
   This metric measures customer dissatisfaction with the return process. To meet Amazon’s standards, your Return Dissatisfaction Rate must be under 10%.

7. Invoice Defect Rate
   This metric applies to Amazon Business customers. Sellers must provide a downloadable VAT invoice within one business day after shipping confirmation. The target for the Invoice Defect Rate is below 5%.

What Happens if You Fail the Amazon Account Health Metrics?

If you fail to meet Amazon’s Account Health targets, Amazon may request a Plan of Action (POA) from you. A POA is your detailed response to address the issue, including how you will fix the problem and prevent it from happening again.

If Amazon accepts your POA, your account will remain active. However, if you do not provide a satisfactory plan or fail to take action within 48 hours, your account could be suspended.

Best Practices to Maintain Amazon Account Health

To ensure your Amazon Account Health remains in good standing, follow these best practices:

1. Monitor Your Metrics Regularly:
   Check your Account Health page frequently to stay on top of any potential issues before they escalate.

2. Respond Quickly to Policy Violations:
   If you receive a performance notification, address the issue immediately. Ignoring a violation could lead to suspension.

3. Keep Your Shipping Performance High:
   Ensure you meet shipping targets, especially for FBM orders, by maintaining a high on-time delivery and tracking rate.

4. Aim for Zero Product Complaints:
   Amazon sets a zero tolerance policy for product complaints. Ensure your product listings are accurate, and comply with all product safety and intellectual property policies.

How Sellers Launch Can Help

Understanding and maintaining your Amazon Account Health is critical to your long-term success on the platform. Sellers Launch can help you stay on top of these metrics and develop strategies to meet Amazon’s performance targets.

If you need assistance improving your Account Health, reach out to Sellers Launch today. We can guide you through best practices and help ensure your account stays in good standing.

Final Thoughts

Your Amazon Account Health is a vital aspect of your ability to sell on the platform. By focusing on key metrics like ODR, shipping performance, and policy compliance, you can maintain a healthy account and avoid penalties.

If you need help managing your account metrics, contact Sellers Launch to get expert advice and support.