Protecting your Amazon account is an important part of growing your FBA business. In this week’s blog we explain exactly how you can better protect your account.
Amazon expect users to operate their accounts in compliance with their rules. To monitor this Amazon look at an accounts health rating. So what is an account rating and how does it work?
What is AHR and how could it affect my FBA business?
AHR is your Account Health Rating. Your Account Health Rating is affected by the number of unresolved policy violation on your Amazon account.
Sometimes if a seller’s account has a very poor performance they can be immediately deactivated. If your AHR is critical or at risk your account could be deactivated.
How can I find out what my AHR is?
Go to your Seller Central homepage, then click Performance and Account Health.
This page shows you an overview of your performance targets and the policies you need to sell on Amazon. Amazon regularly review accounts to check if they are completing their targets.
Depending on your performance Amazon may remind you of any issues affecting your account.
To avoid Amazon looking into your account it is useful to identity potential issues and take steps to resolve them.
- Keep an eye on your performance notifications.
- Take action and respond to any potential issues on or with your account.
- Build the habit of reviewing your account.
To maintain your account health it is important to address and deal with any policy violations.
You can review any violations, issues or complaints by clicking ‘view details’ on the ‘product policy compliance’ section of the page.
If your account has been deactivated, you can apply for reinstatement. In your appeal you will need to provide a plan of action for correcting the problems which have affected your account.
What affects my account health?
Order Defect Rate (ODR). Measures the satisfaction of your customers in the last 60 days. This includes negative feedback, successful A-to-Z claims and credit card chargeback. Your order defect rate should be below 1%.
Late Dispatch Rate (LDR). This is based on how many orders had shipping confirmation posted after the expected shipping date. Your LDR rate should be below 4% or you could face a warning or suspension.
On-Time Delivery Rate (OTDR). This rate refers to how many packages made it to the buyer by the estimated delivery date. This only applies to seller-fulfilled orders. This rate is a percentage, anything above 97% is healthy for your account.
Return Dissatisfaction Rate (RDR). This rate can increase if you get negative feedback, don’t respond to a return request within 48 hours or deny a return request. This rate needs to be under 10%.
Invoice Defect Rate. This is the share of orders placed by Amazon Business customers where you have not provided a downloadable VAT invoice in one day after shipping confirmation.
Cancellations Rate. This is only for FBM sellers. It measures the percentage of orders cancelled by the seller in the last week.
How can I protect my Amazon account and my FBA business?
- Review your listings to make sure they are accurate. If an item is a variation double check you have listed them correctly.
- Do you have the necessary documentation? To cover disputes of authenticity it is useful to have the correct documentation.
- Make customer service a priority. The quicker you can reply to customers the better.
- Are the items you are sending in fragile? Make sure you have correctly packaged your items to protect items.
- Keep an eye on your feedback. Breaking down your feedback can help you to spot potential issues and remedy them. If you download your FBA Customer Returns Report to see your returns data. You can find this by going to Reports, then Fulfilment.
Protecting your Amazon account is an important part of growing your FBA business. Keeping these points in mind will help you to strengthen your account and ensure you stay organised and on top of your FBA admin!
We hope that you now feel better prepared when it comes to protecting your FBA business. If you would like to learn more about FBA we have a Youtube channel which you can find here. We also have the Profitl website where you can learn more about our software and how it can revolutionise your FBA business.