Unleash Your Selling Potential with Amazon STEP: Elevate Your Seller Game

Discover the game-changing Amazon Seller Tier Evaluation Program (STEP) designed to elevate your online selling experience. Learn how Amazon STEP categorizes sellers into different tiers based on performance metrics and the remarkable benefits each tier offers. From stringent performance benchmarks to unparalleled perks, find out how to become a Premium Seller and access exclusive advantages. Don't miss the chance to enhance your selling potential with Amazon STEP and transform your online business journey.


Himanshu from Adsify

8/22/20236 min read

Are you a seller on Amazon looking to supercharge your performance and take your business to the next level? If so, you're in for a treat! Amazon has rolled out its revolutionary Seller Tier Evaluation Program (STEP), designed to empower sellers like never before. In this blog, we'll delve into the nitty-gritty of Amazon STEP, from what it is to the remarkable benefits it brings to the table, and even how to achieve the coveted Premium Seller status.

Understanding Amazon STEP:

Amazon STEP, or Seller Tier Evaluation Program, is a groundbreaking initiative introduced by Amazon to assist sellers in enhancing their selling efficiency and customer satisfaction. The program categorises sellers into four distinct tiers - Basic, Standard, Advanced, and Premium - based on specific performance metrics. By excelling in these metrics, sellers can unlock an array of perks that can significantly impact their bottom line.

Performance Metrics Benchmarks:

A key highlight of Amazon STEP is the stringent performance metrics that sellers are evaluated against. Meeting and exceeding these benchmarks can catapult sellers into higher tiers, where lucrative benefits await:

  • Total Cancellation Rate: Total Cancellation rate is the percentage of all orders that were cancelled by sellers during a specified time period. This metric includes all order cancellations that the seller initiates, or those orders that Amazon cancels automatically because the seller did not ship and confirm the order in the 24 hours following the Estimated Shipping Date (for MFN/ES sellers), with the exception of those that are requested by the customer using the order-cancellation options in their Amazon account. These include pending orders that the customer cancels directly through Amazon.

    • Basic: Above 1.00%

    • Standard: 0.25% to 1.00%

    • Advanced & Premium: Below 0.25%

  • Total Late Dispatch Rate: The total late dispatch rate (TLDR), expressed as a percentage, includes all orders confirmed to ship (dispatched), after the ship date. This applies to all orders delivered via any delivery channel. Customers can track the status of their orders online if you confirm shipment by the expected ship date. Late confirmation of shipments can lead to more claims, negative feedback or customer contact and/or negatively impact the customer experience.

    • Basic: Above 2.00%

    • Standard: 0.50% to 2.00%

    • Advanced & Premium: Below 0.50%

  • Seller Controllable Return Rate: Returns that are under the control of the seller include orders returned by customers or refunded by Amazon due to issues with products such as:

  • Customer receives a damaged/defective product.

  • Customers faced size and fit issues

  • The product does not meet the customer's expectations.

  • On the product detail pages, there is inaccurate and incomplete information.

    • Basic: Above 9.88%

    • Standard: 4.02% to 9.88%

    • Advanced & Premium: Below 4.02%

  • Out of Stock Rate: Out of Stock (OOS) % is the number of customer views where you were out of stock on a select set of ASINs from your catalogue as a percentage of total customer views on the same select set of ASINs.

    • Basic: Above 14.90%

    • Standard: 3.17% to 14.90%

    • Advanced & Premium: Below 3.17%

  • Prime Listings Customer Views %: Prime Listing Customer Views % refers to the number of customer views where you have a prime offering, as a percentage of total customer views on your products.

    • Advanced & Premium: Above 50%

  • Regional In-Stock %: Regional In-Stock % is the percentage of your total Customer orders where at the time of ordering, distance between your available product and Customer location was within 300 kilometres (km).

    • Premium: Above 35%

  • Net Sales: Net Sales Volume is the total value of products provided to customers on Amazon.in at the price listed on products' detail page during the specified time period. This excludes return or cancelled products.

    • Premium: Above ₹50 lakhs or 10,000 units

Benefits Galore:

Stepping up to higher tiers isn't just about prestige; it's about unlocking a treasure trove of benefits that can elevate your selling experience:

  • Payment Reserve Period: Payment reserve period (or account level reserve) is the number of days for which the funds from an order are reserved after the latest estimated delivery date (EDD) or the actual delivery date, whichever is earlier to ensure that you have enough funds to fulfil any refund requests from buyers. This is determined basis your STEP level and is automatically applied. Once funds cross the reserve period, the funds are eligible to be disbursed to the seller's bank account. Currently, all Premium sellers receive 3 days Payment Reserve Period.

    • Basic: 10 days

    • Standard: Advanced: 7 days

    • Premium: 3 days

  • Payment Disbursement Cycle: Payment Disbursement Cycle is frequency at which Amazon auto initiates transfer of funds that have crossed the reserve period. Sellers in Basic, Standard and Advanced Level get a weekly payment disbursement cycle where in the system automatically initiates transfer of funds once every week. Sellers in Premium level get a daily payment disbursements.

    • Basic, Standard, Advanced: Weekly

    • Premium: Daily

  • Weight Handling Fees Waiver: Weight Handling Fees is the fulfillment fees charged by Amazon when it provides you delivery services. It depends on the weight and dimension of your product (two size bands – Standard and Heavy & Bulky) and shipping distance (Local, Regional, National). Sellers will receive different waivers based on their level. The waivers are automatically applied when the fees are charged.

    • Basic: No waiver

    • Standard: Up to Rs. 6

    • Advanced & Premium: Up to Rs. 12

  • Refund Fees Waiver: When reimbursing you for an order returned by a customer, Amazon determines the amount of the fees for the order that is credited back to you and the amount of the fees that Amazon retains.

    • Basic: No waiver

    • Standard: Up to Rs. 10

    • Advanced & Premium: Up to Rs. 30

  • Lightning Deal Fees Waiver: Lightning Deal Fee is charged on Amazon recommended and seller selected ASINs which are added on Lightning Deal. All the eligible sellers will be charged a flat fee based on their STEP Level at the end of the month.

    • Basic: No waiver

    • Standard: 10% off

    • Advanced & Premium: 20% off

  • Long Term Storage Fees Waiver: Long Term Storage Fee is charged every month for all the sellable inventory units that have been stored in Amazon Fulfillment Centers (FC) for more than 180 days.

    • Premium: 20% off

  • Account Management: Account Management services are delivered by experienced Account Managers who help identify gaps and areas of opportunity to help sellers grow their business on the marketplace.

    • Basic & Standard: No service

    • Advanced: Based on criteria

    • Premium: Guaranteed

  • Free Service Provider Network Credits: Service Provider Network (SPN) connects sellers with Amazon-empanelled third-party service providers who help sellers with various services like cataloguing, imaging, and so on.

    • Advanced & Premium: Worth ₹3000

  • Free A+ Cataloguing for Your ASINs: Amazon A+ Content is one way to boost sales. It's a powerful tool which allows sellers to enhance product descriptions in their listings.

    • Advanced & Premium: For 10 ASINs

  • Confirmed Invitation to Amazon Seller Connect Events: Amazon Seller Connects are invite only events for the top performing sellers across different cities.

    • Advanced & Premium: Exclusive access

  • Priority Seller Support: 24x7 expedited support for your urgent issues by email.

    • Premium: Expert assistance

Becoming a Premium Seller: The Path to Success

Now that you're familiar with the Amazon STEP tiers and benefits, you're likely wondering how to attain the illustrious Premium Seller status. The key lies in consistently exceeding the performance metrics benchmarks for advanced and premium tiers. By striving for excellence in cancellation rates, dispatch timeliness, return rates, stock availability, and other metrics, you can demonstrate your commitment to providing top-notch service.

Remember, becoming a Premium Seller isn't just about numbers; it's about creating an exceptional customer experience. Prioritize efficient order processing, prompt shipping, accurate product listings, and exceptional customer service. Going the extra mile can propel you towards becoming a Premium Seller, where unparalleled benefits await.

Conclusion: Soar to New Heights with Amazon STEP

As an Amazon seller, your success is now more within your control than ever. Amazon STEP equips you with the tools to not only meet but exceed customer expectations, leading to enhanced sales and growth. By mastering the performance metrics and ascending through the tiers, you can enjoy benefits that streamline your operations and boost your profitability.

Don't let this opportunity slip away. Embrace Amazon STEP today and embark on a journey towards seller excellence that will reshape the way you do business on the world's largest online marketplace. Elevate your seller game, make your mark, and reap the rewards of a thriving online business!

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