Amazon Order Defect Rate: Causes, Calculation & Solutions

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It is essential to monitor your performance metrics to succeed in any business. Many eCommerce platforms help you keep track of your performance by providing key insights and analysis. Managing the Order Defect Rate (ODR) is crucial for an Amazon seller. It shows the percentage of orders with problems or defects during a particular period, hampering your growth. What are these problems, and how do they affect your reputation? This article covers everything you need to know, from how to calculate ODR to understanding its causes and consequences. Read on to learn more!

Amazon Order Defect Rate (ODR)
What Is Order Defect Rate (ODR)?
Amazon Order Defect Rate is used to determine the quality of customer service your business is offering. It is calculated to get the percentage of orders that are considered problematic due to certain factors. These factors philippines phone number list include negative feedback, late deliveries and unresolved customer issues. Calculated over a specified period, ODR helps you maintain high-performance standards and customer satisfaction. A low ODR indicates high performance. Amazon has set a target of less than 1% ODR for its sellers. By maintaining an ODR below 1% of your total orders signifies you can meet the desired standards. Conversely, if this threshold is crossed, then your account may be suspended, or Amazon may impose other restrictions.

What Qualifies an Order as Defective?
Several factors can qualify an order as defective. They are:

Negative Feedback
Customer reviews and ratings are a significant measure of an order’s quality. When customers leave poor reviews, it directly reflects their dissatisfaction at a poor experience. They may be unhappy with either the product or the service. It may be that your product did not meet their expectations, the packaging was poor, or they couldn’t get the required help at the customer service center.