Order Defect Rate (ODR)
Order Defect Rate measures the number of orders with a defect against your total number of orders for that time period. A defect can be Negative Customer Feedback, A-to-Z Guarantee Claim, or Service Chargeback Rate.
This is calculated by taking your total number of orders by the number of orders with defects. Let’s say you have 500 orders within a given time period and 1 of them has a defect, your ODR is 0.2% (1/500 = 0.2%).
The target rate for your ODR is less than 1%.
The ODR can be calculated over any historical time period. Since many defects are reported several weeks after orders are placed or received, Amazon typically only calculates them for periods not earlier than 30 days from the current date. Even if there are multiple defects on one order, that order is only counted once in ODR calculations.
To keep your ODR rate in the green, provide great customer service and work proactively with your customers to resolve order problems quickly. This will help you avoid most A-to-Z Guarantee claims and negative customer feedback.
Cancellation Rate
Your order cancellation rate is measured by the number of orders you cancel against your total number of orders for that time period. Order cancellations initiated by customers do not affect this rate. Remember, the only way for a customer to initiate a cancellation is to message you. There is not cancellation button on the customer’s side!
Late Shipment Rate (LSR)
The Late Shipment Rate (LSR) metric measures the number of orders you ship late compared to your total number of orders. An order is considered late if you confirm shipment after the expected ship date.
Remember you can always change your production time in each listing if you find you need more time to complete orders due to being overwhelmed by the number of orders you are receiving!
Now let’s delve a little more into each category!
Remember, the only way for a customer to initiate a cancellation is to message you. There is not cancellation button on the customer’s side!