How to Manage Account Health on Amazon

In this comprehensive guide, Discover the strategies you need to maintain a healthy account by managing your Amazon seller account. Discover how to improve key performance metrics such as the order defect rate or late shipment rate. Learn how to improve product quality, Optimize listings and offer excellent customer service. Learn how to manage your inventory, handle negative feedback and stay compliant with Amazon policies. This knowledge will help you navigate the Amazon platform confidently, increase your sales and create a successful e-commerce company.


Himanshu from Adsify

7/17/20234 min read

black Samsung Galaxy smartphone displaying Amazon logo
black Samsung Galaxy smartphone displaying Amazon logo

As an Amazon seller, it is vital to maintain a healthy and compliant account. Account health is the collection of metrics and policies that impact your ability to sell and maintain a positive reputation. This blog will provide you with a step by step guide on how to manage your account health at Amazon.

Step 1: Understand Performance Metrics.

It is important to understand which metrics Amazon uses for account health evaluation. The Order Defect Rate (ODR), Late Shipment Rate (LSR), Pre-Fulfillment Cancel Rate Rate (PFCR) and Valid Tracking rate are the key metrics. All of these metrics are important for determining your account's health. Understanding the benchmarks set by Amazon and aiming to surpass or meet them is important.

Step 2: Review Account Health Overview

Review your Seller Central Account Health overview frequently. This dashboard will give you an overview of your account's health and highlight areas that require attention. Pay attention to metrics that are below Amazon's thresholds. Early detection can prevent account suspensions and other penalties.

Step 3: Address Performance Issues

If you notice any performance issues, such as an elevated ODR and LSR, then immediately take action. Find the root cause of the problem: It Can be delayed shipments, cancellations, complaints from customers, etc. To resolve these issues, you can implement corrective measures, such as optimizing your inventory management, improving order fulfillment, and providing excellent customer service.

Order Defect Ratio (ODR): This rate measures the number of orders which have been returned due to negative feedback or A-to Z Guarantee claims. It is a measure of the general dissatisfaction your customers have with your products and services. Amazon has a threshold for ODR (usually less than 1%) which sellers are required to reach. High ODRs can result in account suspension or the loss of selling privileges.

Late Shipment Ratio (LSR): The Late Shipping Rate is the percentage of the orders that did not ship by the scheduled date. Amazon expects its sellers to maintain low LSR in order to provide timely deliveries and an excellent customer experience. Account penalties can be imposed if the LSR target is not met. The Buy Box may also be lost if the LSR target is not met.

Step 4: React Promptly to Customer Questions and Feedback.

Communication and prompt responses can help reduce negative feedback and the likelihood of disputes escalating to Amazon. Address customer concerns professionally and offer solutions to ensure customer satisfaction. To maintain a good account and build a reputation, customer service is essential.

Step 5: Follow Amazon Policies

Amazon policies are crucial to maintaining a healthy Amazon Account. Be familiar with the Amazon Seller Code and its policies. Be aware of any policy changes and ensure that your business practices align with Amazon's guidelines. If you violate policies, your account may be suspended and you could face other penalties.

Step 6: Monitor and Manage Inventory

It is important to keep your inventory current and accurate. Monitor your inventory levels regularly to avoid overselling and stock outs. Use inventory management tools and set up alerts to automatically replenish your stock. This will prevent interruptions in the fulfillment of orders. Inventory management helps to reduce cancellations and improves account scores.

Step 7: Optimise Product Listings.

Make sure your listings are accurate and optimized for search visibility. Amazon's guidelines for creating high-quality product titles, bullets, descriptions, and images are a good place to begin. Keywords are a great way to attract potential customers and increase your search ranking. A well-optimized listing will lead to a higher conversion rate and healthier accounts.

Step 8: Seek Out Opportunities to Improve Performance.

Constantly strive to improve your account's health and overall performance. You can improve the performance of your business by streamlining procedures or implementing new strategies. Amazon's performance metrics and analytics can help you identify trends and areas for improvement. Regularly assess your account health and make any necessary adjustments.

Conclusion: Amazon Seller Central Account Management is crucial for sellers that want to be successful on the platform. By understanding metrics, responding quickly to issues, adhering policies, optimizing listings, and prioritizing customer service, you can improve and maintain your account. Improve your account by making data-driven choices and improving its potential to sell.

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Step 9: Monitor Feedback.

Monitor feedback from sellers and customer reviews regularly. Address any negative feedback or reviews promptly and pro-actively. Engage your customers, listen to their concerns, and ask them for revisions of feedback if needed. Positive reviews will increase your credibility and the health of your account.