Ever wondered why some Amazon sellers seem to effortlessly succeed while others struggle to keep their accounts in top shape? The key often lies in understanding Amazon Account Health metrics. Since Amazon has more than 9.7 million sellers and accounts for almost 40% of online sales in the US, a good account must be maintained to be visible in a busy marketplace. These measures are not just numbers; they indicate how well your account performance is.

Different key metrics are essential for measuring the Amazon performance rating of your account health like Order Defect Rate (ODR), Pre-Fulfillment Cancellation Rate and Late Shipment Rate. Excelling in these areas has a major impact on your visibility and reputation on Amazon.

To keep your Amazon Account Health in check, regularly review these metrics and address any issues promptly. We’ll explore everything in detail to help you prevent account health problems and pave the way for continued success in the marketplace.

What is Amazon Account Health Rating (AHR)?

The Amazon Account Health Rating (AHR) is key when assessing seller performance and reliability in the Amazon marketplace. AHR involves multiple Amazon performance rating indicators that determine the capability of any seller to run business activities in compliance with Amazon regulations. The comprehension of AHR is significant since it influences your ability to sell and prosper on the platform.

Amazon account health is illustrated through a score that can be viewed through various colors; this score starts from 0 to1000, which indicates your proper account health status;

• Green: An AHR score of 200 or above falls in the “Healthy” range, displayed in green on your screen.
• Yellow: Scores between 100 and 199 are considered “At Risk.”
• Red: If your score drops below 100, it will display in red, indicating eligibility for deactivation. Immediate attention to listing violations is essential if this occurs.

An account health rating of 200 indicates that your account is in a healthy condition. If you want to succeed on the Amazon platform, keep track of these indicators and ensure you adhere to Amazon policies and guidelines.

Importance of Maintaining Amazon Account Health Rating for Sellers

Your Amazon Account Health is basically the soul of your business on the platform. It is everything you need to know about how well you are doing as a seller, including compliance with Amazon policies and guidelines.

Here’s why maintaining a good Account Health is paramount:

• Prevent Account Suspension:
  When you manage an Amazon account, the basic rules to adhere to are the Amazon policies and guidelines. A failure to comply with them might lead to account suspension that not only tarnishes your reputation but also costs you. You can safeguard your efforts by maintaining the account health.
• Maintain Customer Trust:
  A healthy account often correlates with satisfied customers, leading to repeat business and positive reviews. Consistent performance and adherence to Amazon’s policies foster trust and loyalty among customers.
• Compliance with Amazon Policies:
  Understanding AHR helps ensure adherence to Amazon’s policies and guidelines. It helps to maintain a positive seller reputation and avoid Amazon violations.

How is Amazon Account Health Calculated?

To maintain a successful Amazon seller account, one must know how to calculate the Amazon Account Health Rating (AHR). This is an important factor as it involves making sure that sellers meet and follow Amazon’s standards.

To calculate your AHR, Amazon assigns a certain number of points to each policy violation based on the severity of the breach. There are four severity levels: critical, high, medium, and low. When determining the severity, amazon considers factors including the degree to which the violation negatively impacts the customer experience and whether the policy violation contravenes applicable laws and regulations.

AHR score is ranging between 1 and 1000. A higher score indicates better overall account health. Amazon evaluates these factors collectively to determine the health of the seller’s account, with the score reflecting performance and compliance levels. The better a seller performs in these areas, the higher their AHR will be.

Also Read: Struggling with account health issues? Get Your Account Assessment Today.

Key Factors Affecting Amazon Account Health

Amazon account health rating is essential for maintaining a good brand reputation on the platform. Here are the main factors that affect Amazon Account Health include:

1. Order Defect Rate (ODR)

Order Defect Rate indicates the percentage of defective orders, which comprise A-to-Z Guarantee claims, negative feedback, and chargebacks. Amazon considers an ODR above 1% to be problematic. A lower ODR signifies better account health. Maintaining an ODR below 1% is essential for preserving a healthy account rating and avoiding account suspensions or other penalties.

Key ODR Metrics:

• Negative Feedback
  Negative feedback is a poor rating or bad comment left by a customer on a seller’s Amazon page, which can include complaints about the wrong product, late shipment or poor service. Such feedback damages the seller’s reputation in the online marketplace.
• A to Z Guarantee Claim
  Amazon provides this guarantee to ensure customers are satisfied. A buyer can file an A-to-Z Guarantee Claim if they are unsatisfied with their purchase, either because of late delivery, receiving a wrong or damaged item, other issues, etc. In response, Amazon investigates and refunds consumers while mostly holding the seller responsible.
• Chargeback Claims
  A chargeback happens when a buyer disputes a transaction, often due to incorrect charges or poor service. If the card issuer sides with the buyer, the seller loses money and may face additional bank fees. Frequent chargebacks can damage the seller’s account and may lead to Amazon suspension.

Also Read: How to Improve Amazon Account Health Rating (AHR) and Avoid Suspension?

2. Shipping Performance

Amazon considers customer satisfaction a priority and that’s why it expects sellers to meet the defined standards of the platform. These are the key metrics to follow;

Key Shipping Performance Metrics

• Late Shipment Rate:
  The late shipment rate measures the order’s percentage that did not get shipped as promised according to their shipping dates. Amazon considers a Late Shipment Rate above 4% as detrimental to account health.
• Pre-Fulfillment Cancellation Rate:
  The percentage of canceled orders by sellers before the shipping date is called the Pre-fulfillment cancellation rate. If the PRE-FC rate is higher, it badly affects the seller’s performance.
• Valid Tracking Rate:
  The percentage of orders with valid tracking information within the specific timeframe is called Valid Tracking Rate. The timely and accurate tracking updates are essential to improve customer experience and seller performance.

Consistently meeting shipping deadlines helps maintain a positive Amazon Account Health Rating and prevents potential penalties.

3. Policy Compliance

Policy Compliance involves complying with different policies of Amazon. It is essential to follow Amazon’s rules and regulations in order for your account not to get harmed by violations like account ban, suspension, or warnings, which will result in loss of money.

Key Metrics of Policy Compliance

• Suspected Intellectual Property Violations
  There can be infringements with regard to other people’s intellectual property like copyrights, trademarks or patents. This happens when there is sufficient evidence that a certain item may be copying or utilizing someone else’s creative work without permission.
• Received Intellectual Property Complaints
  This occurs when a seller receives formal complaints about their products or listings allegedly violating someone else’s intellectual property rights. These complaints could lead to actions such as listing removal or account suspension if the claims are verified.
• Product Authenticity Customer Complaints
  These complaints arise when customers question the legitimacy of a product they received. They may believe the item is counterfeit or not as described, raising concerns about its authenticity.
• Product Condition Customer Complaints
  Issues reported by customers related to the physical state of a product upon arrival. Complaints often include reports of items being damaged, defective, or not meeting quality expectations.
• Food and Product Safety Issues
  In relation to the safety of food or consumer products, there are concerns or complaints. That is, it can involve issues such as food contamination, hazardous substances, or inadequacy with regard to safety standards.
• Listing Policy Violations
  When a product listing fails to comply with the policies set by Amazon, it becomes an instance of violation. It includes misinformation, inappropriate content and even false product claims.
• Restricted Product Policy Violations
  Violations related to the sale of items that are not allowed according to Amazon’s restricted products policy. This typically includes regulated or prohibited goods that cannot be sold on the platform.
• Customer Product Reviews Policy Violations
  Cases where customer reviews do not adhere to Amazon’s review policies. This includes issues like fake reviews, biased feedback, or attempts to manipulate review ratings.
• Other Policy Violations
  Infractions that fall outside the specific categories but still breach Amazon’s broader platform policies. These violations can encompass a range of activities that do not fit neatly into other predefined categories.

Also Read: 8 Most Common Reasons for Amazon Account Suspension in 2024

Monitoring Your Amazon Account Health

For a successful selling operation on Amazon, you must manage and monitor your Amazon Account Health. Regularly log into your Amazon Seller Central account Dashboard to assess the Account Health and performance metrics. Checking daily or weekly ensures you stay informed about any changes or potential issues affecting your account health.Here are the proper ways to regularly monitor your account health;

1. Log into Seller Central:

   First, log into the Seller Central dashboard, navigate to the “Performance” tab, and select “Account Health” from the dropdown menu.

   

   On the Account Health page, you’ll see a summary of your performance metrics, including Order Defect Rate, Policy Compliance, Late Shipment Rate, Pre-Fulfillment Cancel Rate, and Valid Tracking Rate. Meeting these targets and adhering to Amazon’s policies is essential for maintaining your selling privileges and ensuring a successful selling experience.

   

2. Review & Manage Your Performance Metrics:

   The next step is to click on “Customer Service Performance” to view a detailed report on your Order Defect Rate (ODR). This rate is calculated by dividing the number of defective orders—such as those with negative feedback, A-to-Z Guarantee claims, or chargebacks—by the total number of orders. To keep your account in good standing, ensure your ODR stays below 1%, as exceeding this can risk account deactivation. You can download your ODR report by clicking the “Download Report” button.
   

3. Check Product Policy Violations

   Now, select “Product Policy Compliance” to check for any listings that may be violating Amazon’s policies, such as restrictions on pesticides. If you believe a listing has been mistakenly removed, you can file an appeal by clicking the “Appeal” button. Addressing these issues promptly is crucial to maintain compliance and avoid disruptions to your sales.
   

4. Monitor Your Shipping Performance Metrics

   Navigate to the “Shipping Performance” tab to review key metrics such as Late Shipment Rate, Pre-Fulfillment Cancel Rate, Valid Tracking Rate, and On-Time Delivery Rate. If any of these rates are lower than desired, you’ll need to improve them to maintain smooth business operations and continue succeeding on Amazon. Regularly assessing and addressing these metrics helps ensure a positive customer experience and robust account health.
   

5. Review Orders with Defects Report

   Click on the “Report” tab and select “Orders with Defects” from the dropdown menu. Here, you’ll find a bar chart displaying defective orders, including those with cancellations, late shipments, negative feedback, A-to-Z Guarantee claims, or chargebacks from the past year. This report is used to calculate your Pre-Fulfillment Cancel Rate, Late Shipment Rate, and Order Defect Rate, helping you identify and address issues affecting your account health.
   

6. Analyze Performance Over Time

   Next, click on “Performance Over Time” to access a detailed report. This summary shows a breakdown of orders with cancellations, late shipments, negative feedback, A-to-Z Guarantee claims, and chargebacks over the past year. Reviewing this report will help you track trends and identify areas for improvement in your overall performance.
   

7. Check Your Eligibility for Premium Shipping

   Click on “Eligibilities” to see if you qualify for Premium Shipping. To become eligible, you must maintain a 97% On-Time Delivery Rate, a Pre-Fulfillment Cancel Rate below 0.5%, and a 99% Valid Tracking Usage Rate. Meeting these criteria ensures you can offer expedited shipping options and enhance customer satisfaction.
   

8. Address Issues Using the Voice of the Customer

   Click on the “Voice of the Customer” tab to review the status of your listings. If you identify any listings with poor performance, you can address the issues by clicking the “Fix Issue” button. Taking prompt action on these problems helps improve your overall account health and customer satisfaction.
   

Successful selling on Amazon requires proactive management of your Amazon Account Health. Regularly logging into Seller Central to review and address performance metrics is essential for maintaining account standing. By continuous monitoring, you can promptly address issues and ensure a positive customer experience. Staying engaged with Amazon’s tools and reports will help you meet standards, avoid disruptions, and enhance your overall selling success.

Also Read: Amazon Negative Feedback Removal Secrets That Most Sellers Don’t Know

How to Prepare for Future Amazon Account Health Requirements

During Amazon’s evolutionary stage, the metrics and requirements that constitute account health have been changing accordingly. For this reason, it is important to keep abreast of what is coming in line with these metrics if someone wants to remain competitive.

So here are some predicted changes in the Amazon Account Health metrics, how one can get themselves ready for future demands, as well as where the Amazon Account Health is in overall seller performance.

Upcoming Changes to Amazon Account Health Metrics

Amazon frequently updates its performance metrics to enhance customer experience and ensure seller compliance. What is AHR? Amazon Account Health Rating (AHR) reflects your performance based on these metrics. Future changes might include:

1. Enhanced Performance Metrics: Amazon is likely to introduce more granular performance metrics to capture seller activity and customer satisfaction better. This could involve more detailed tracking of metrics like fulfillment accuracy and customer response times.
2. Strict Compliance Standards: Amazon enforces strict compliance standards for better customer experience and tries to make sure that sellers follow its rules properly.
3. Integration of Advanced Technologies: Amazon is expected to leverage AI and machine learning to refine performance metrics and detect anomalies more accurately. This could lead to more dynamic and real-time assessments of seller performance.

Key Measures to Consider for Future Requirements

To prepare for future account health requirements, one must follow the below key measure;

• Stay Updated Regularly review Amazon’s policy updates and participate in seller forums to stay informed. This helps avoid accidental breaches and maintains a good Amazon account health rating.
• Improving Order Defect Rates Reduce your order defect rate by ensuring accurate listings, timely shipping, and effective problem resolution. Keeping your ODR below 1% helps maintain a healthy account.
• Policy Deep Dives Thoroughly understand Amazon’s policies by diving into their documentation and training resources. This knowledge helps in avoiding violations and maintaining a positive Amazon account health rating.
• Ensuring Policy Compliance To ensure compliance with Amazon’s regulations, regularly inspect your listings. Confirming that the product information is legitimate using Amazon’s compliance instruments suit all product information is accurate.
• Frequent Audits Conduct regular audits of your listings and account activity to catch and correct issues before they become violations. Monthly audits reduce risk and maintain account health.
• Amazon Seller Tools Utilize tools like Amazon’s Account Health Dashboard to monitor performance and address potential issues early. These tools help in maintaining a high account health rating.
• Enhancing Customer Service Provide excellent customer service by promptly addressing complaints and handling returns efficiently. Positive customer feedback supports better account health metrics.

Consequences of Poor Amazon Account Health

Maintaining a robust Amazon Account Health is crucial for a successful seller experience. A poor Amazon Account Health Rating (AHR) can lead to several serious consequences:

• Account Suspension: A low AHR can result in account suspension or deactivation, which means losing access to your seller account. Amazon’s guidelines indicate that accounts with performance issues face a higher risk of suspension.
• Restricted Selling Privileges: Poor account health can lead to restrictions on what and how you can sell, affecting your business operations.
• Reduced Buy Box Eligibility: Saleable items with bad account health can earn less on the Buy Box, reducing sales by up to 80% as it highly influences consumer choices.
• Decreased Visibility: An inadequately healthy account could cause Amazon’s search algorithm to place your products lower in rank, so they become less visible and cause low sales.
• Negative Customer Perception: High complaint rates and negative feedback linked to poor account health can deter buyers and reduce sales conversion rates by up to 30%.

Final Thoughts:

Account health at Amazon is a necessary part of sustaining an effective presence on the platform. Adequate Amazon Account Health ratings guarantee not just adherence to Amazon guidelines but also shape sales as well as affect your entire business growth. To avert possible suspensions or penalties which may affect operations and reduce income, monitoring and managing account health is essential.

An Amazon seller needs to concentrate more on their Amazon Account Health Rating (AHR). In order to protect your business from any disruption, you should always check out your account health and fix problems that come up. This will go a long way in making you reputable on Amazon. An excellent account health rating fosters trust with Amazon and customers alike, enhancing your chances of higher visibility and sales.

At SPCTEK, we’re here to help Amazon sellers boost their account health and performance. If you’re worried about your Amazon Account Health or need a hand, just reach out. Our expert team is ready to assist you in resolving issues and improving your account. Visit our website or contact us directly to get started!