Wednesday, July 09, 2008

Amazon Adds Customer Metrics Console to Seller Central

This announcement comes from the Seller Central Dashboard

"We are pleased to announce the launch of the new Customer Metrics in Seller Central. This tool provides reports that give you greater insight into how you are doing with respect to your customers’ satisfaction. For detailed information about the metrics available to you with this new tool, please visit our Customer Metrics Help page."

The following performance metrics are included in the report:
  • Order defect rate (ODR): The percentage of orders that have received a negative feedback, an A-to-Z Guarantee claim or a service credit card chargeback. It allows us to measure overall performance with a single metric. [This really has nothing to do with actual product defects, just problems with orders.]
  • Pre-fulfillment cancellation rate: This measures your in-stock rate for items sold with Amazon.com. [sellers may need to tighten up their inventory management]
  • Late ship rate: On-time shipment is a promise we make to our mutual customers. Orders ship-confirmed three or more days beyond the expected ship date are considered to be late.
  • Percentage of orders refunded: High refund rates may be an indicator of item stock-outs.

Amazon has always measured these results, but with the new Customer Metrics console they've gathered them into one place.

The ODR (Order Defect Rate) should be under 1% and they measure it both short-term (30-days) and long-term (120 days).

Here is what Amazon says about Performance Targets:

"All Amazon.com merchants should be working toward achieving and maintaining a level of customer service that will result in an order defect rate of no more 1%. Failure to meet this target does not necessarily put your account in negative standing, but failure to improve may negatively affect your account.

This is a baseline goal. Merchants with exemplary performance have the opportunity to distinguish themselves to buyers through the feedback rating that appears next to each of their listings. Most merchants are exceeding this target, so the stronger your performance, the better your chance of building a stronger, more competitive business."

UPDATE: For clarification; the ODR percentage is the number of defective (problem) orders divided by total number of orders during a selected period.

The Feedback rating is calculated on total feedback left not total orders.

For example my 30 day ODR is 0.44% and the Feedback portion of that rating is 0.41% (yes, you can still get negative FB using FBA) My actual Feedback rating is 97%

Just my 12%

7 comments:

David said...

1%? You've gotta be kidding me.

I don't shop much on amazon but when I do, I see sellers all the time in the 95-97% range. I don't think I've ever seen a seller on amazon with 99%

Randy Smythe said...

David, it is 1% of your total orders for the period not feedback left.

Feedback % is just based on those who have left feedback the ODR is based on total orders.

Jim said...

So, does this new ODoR eminating from Amazon mean they want to be like eBay?

Randy Smythe said...

Jim,

Nah, they just named something they've been measuring all along.

They sure don't want to be like eBay

David said...

The seller dashboard is complete bullshit.

At least amazon takes into account the *TOTAL* # of transactions and not the total # of people that leave feedback.

I've always wondered how accurate eBay's bots are.

What if somebody files a claim through Paypal and then leaves you a negative feedback.

Does that count as 2 complaints or just 1?

Anonymous said...

The problem I have with this is:
A seller decides to cancel an order because 1) they either didn't read the description -or 2) decided for whatever reason to cancel (changed mind, etc)
So as an Amazon seller you do the right thing and cancel the order prior to shipment.

DING - Amazon counts this against the seller same as if the seller didn't have the item in stock. So for doing the right thing - your metric is dinged by Amazon. THey really need to correct the problem with punishing good seller and lumping them in with sellers who intentionally sell things they do not have.

Anonymous said...

Correction to my previous post - the BUYER decides to cancel the order due to....
Whatever - their own error, misread description, ordered the wrong color. etc.

The seller gets dinged in the pre-fulfillment cancel metric.

Amazon really needs to correct this issue and recognize that a seller honoring a customer request for cancellation is NOT the same as a seller who HAS TO cancel an order because they don't have the item in stock.