Do you ever think of checking the health of an Amazon account? As an aspiring account manager, we assume you do, as it is an important part of the job. But your clients might not realize this, and that is bad news.

If an Amazon seller wants to succeed in a competitive marketplace, they must be proactive in monitoring their account's performance. Those who take the time to learn about and implement the best practices will likely see better results and fewer account penalties.

If you're concerned about the opportunities they've been losing, then this article is perfect for you. We'll discuss what an Amazon online seller training for aspiring AMs can teach you about monitoring and managing an account's health.

Where Can You Monitor the Account's Health?

First of all, where is this Amazon health page we're talking about? Go to the Performance menu and open the Account Health page. It displays an overview of the seller's performance goals and policy compliance. Specifically, Amazon Seller Central provides you with three primary metrics to focus on:

  • Customer support performance
  • Product compliance with policies
  • Shipping performance

You'll also find specific metrics under these three points to check the account's status and identify more areas for improvement.

Amazon Online Training: 9 Key Areas of Strategic Account Health Monitoring

Despite the obvious relevance, many sellers still overlook account health management for several reasons. They might not have enough time, think it's unnecessary, or do not know where to begin.

Luckily, they can rely on account managers to help them keep their accounts healthy, and you could be one of these people soon! Let's discuss the nine most important metrics to monitor an Amazon account and stay compliant with their policies.

1. Account Health Rating (AHR)

The AHR measures the seller's commitment to Amazon's selling regulations. It's based on several factors, including the status, severity, and number of policy violations. If your client's AHR drops significantly to Critical or At Risk, it may lead to deactivation.

Tip: Help your client maintain a good AHR by resolving penalties promptly. Comply with all regulations, terms, and applicable laws to avoid account suspension and focus on growing the Amazon business.

2. Account Status

Before diving into the specifics, you can check the account status and quickly find out if anything is wrong with the client's account. The status will either be Active, Under Review, or Suspended. Your client may still sell even if their account is under review, but funds are withheld temporarily.

Tip: Find out the reason(s) for the suspension (e.g., negative performance, restricted products, multiple seller accounts, or infringement). Then, communicate the issue with Amazon and file an appeal to get the account back.

3. Order Defect Rate (ODR)

The ODR displays the rate of defective orders that causes product cancellations, negative feedback, credit card chargebacks, or A to Z (refund) claims. It shows your client's ability to respond with compelling customer service within the past 60 days. To keep a satisfactory ODR, your client needs to have a less than 1% rating.

Tip: Help your client develop strategies to improve product quality and listings. It's also essential to handle consumer feedback effectively, and we believe AMs would make excellent communicators for it!

4. Cancellation Rate (CR)

The CR measures the seller-fulfilled cancellations within a 7-day timeframe. So if a customer cancels a pending order, it wouldn't impact the CR. It only covers all canceled orders initiated by the seller. Additionally, the seller needs to maintain a metric of under 2.5% to sell on the Amazon marketplace. Otherwise, any rate higher can lead to deactivation.

Tip: Help your client manage their inventory. Update it regularly, check price submissions, and keep enough stock for the Buy Box spot. If they really have to cancel, tell them to do it immediately, so customers won't have to wait until the expected ship date.

5. Late Shipment Rate

The LSR calculates orders with a late dispatch confirmation (after the expected shipment date) measured within a 10- to 30-day period. It often results in negative feedback and A to Z claims. Hence, your client must have an LSR under 2% to be able to sell. Otherwise, it may lead to account warnings or a suspension.

Tip: Urge your client to regularly update their shipping settings or use Fulfillment by Amazon (FBA) to take the burden off their shoulders. Shipping orders before the ship date and sending notifications as soon as they are handed to the carrier are also great practices.

6) Valid Tracking Rate

The VTR is a seller-fulfilled performance metric measuring orders with valid tracking numbers within 30 days. This will help customers track where their orders are and when to anticipate their arrival. Amazon's policy for sellers is to maintain a VTR higher than 95%. Otherwise, there would be some Amazon selling restrictions.

Tip: Set up a system where your client can easily track their inventory. They can use Amazon's Buy Shipping services, choose carriers connected with Amazon, or integrate management software. Also, confirm and update tracking information before the carrier delivers the orders.

7) On-Time Delivery Rate (OTDR)

What's the rate of packages delivered to their destinations by the stated delivery date? That's what the OTDR can answer. This seller-fulfilled performance metric needs to be higher than 97% to consider it a healthy rate. The good news is that there are no consequences if your client doesn't meet the target.

Tip: That said, on-time delivery is still important to avoid negative feedback. So help your client set realistic expectations when it comes to the delivery dates. Consider the carrier's shipping schedule and the time to process and package the items.

8) Return Dissatisfaction Rate (RDR)

Lastly, the RDR reflects customer satisfaction with returns. If your client gets a negative return feedback, an increased late response rate, or a high invalid rejection rate, it means they aren't satisfied with the handling of the return requests. Amazon's policy suggests that sellers should keep the RDR under 10%.

Tip: You can help your client maintain a low return rate in several ways. Examples include:

  • Developing a return policy
  • Writing detailed product descriptions
  • Optimizing listing images
  • Analyzing customer data from previous returns
  • Real-time customer support

9) Invoice Defect Rate (IDR)

Finally, the IDR metric helps third-party Amazon sellers track the invoicing experience from Amazon Business customers for accounting and tax purposes. It's the percentage of orders without a downloadable invoice or receipt (within a day of dispatch.) Amazon's policy states that a healthy IDR must be below 5%.

Tip: Teach your client how to create and send invoices on Amazon. They can also enroll in VAT calculations services or choose between Amazon or their solution provider if they want others to generate them.

5 Best Practices to Improve Your Client's Account Health

Now that you know the nine essential account metrics to track, here are five tips from our Amazon training online for improving and maintaining your client's Amazon seller account health.

Tip 1: Respond to Negative Feedback Promptly and Professionally

When handling negative feedback, timing and professionalism are crucial. It shows that your client is attentive and cares about their customers' satisfaction. Assist them in developing a proper response that begins with an apology, reaffirms the commitment, and proceeds to a more private conversation.

Tip 2: Optimize the Product Listings

Another helpful tip is to help your client enhance their product listing. This helps avoid miscommunication and product returns, which directly impact the RDR. Teach your client how to write detailed product descriptions, optimize product images, and incorporate Amazon SEO keywords to improve their ranking.

Tip 3: Learn the Ropes of the Shipping System

As you can see, shipping significantly influences Amazon's account health metrics. Costly problems may occur when there are discrepancies in the shipment schedule, transition, and communication. Ensure your client understands Amazon's shipping system and the methods they chose to avoid such issues.

Tip 4: Emphasize the Importance of Regular Monitoring

It goes without saying that a healthy account is monitored regularly. Consistently tracking the health status and performance metrics helps you catch red flags early on and avoid problems later. But sellers find it difficult because they have other work to do; as an AM, take charge and schedule check-ins with your client to assist them in tracking essential information.

Tip 5: Don't Skip the Basics

Your client may have been selling on Amazon for a while, but it's still necessary to relearn the basics. Ensure that both of you understand how Amazon's policies work, especially since they can change over time. In strategic planning, being on the same page will make communication easier, better, and more effective.

Account Health is Wealth in Ecommerce

A seller's Amazon account serves as the headquarters of their online business. That is enough reason not to overlook it, especially when monitoring performance metrics. This way, you can help your client maintain a healthy account, avoid any issues that may lead to suspension, and find more opportunities for success.

Ready to become a reliable Amazon expert? Join Digital Academy's online Amazon training for aspiring AMs. Our online course might be just as good as other popular works. These include the Blue Sky Amazon, Wholesale Formula seminar, Seller University, Amazon Boot Camp, Amazing Selling machine, and other digital marketing or Amazon FBA courses.

Digital Academy's best Amazon FBA course can teach you everything from Amazon basics to account management and strategic planning. Here's a run-through of what you'll learn from our Amazon course.

  • Client communication
  • Amazon advertising techniques like Amazon PPC
  • Understanding how the Amazon FBA business works
  • Tips to help an Amazon FBA seller create a shipping plan
  • Amazon store account protection (e.g., Amazon brand Registry and suspension appeals)
  • Leveraging Amazon's strategic programs (e.g., retail arbitrage or online arbitrage and profitable product research)

We also have a 50% grand launching sale, so don't miss it!

Recommended

Follow our social media accounts to get exclusive updates and offers!