Order Defect Rate (ODR)

Order Defect Rate (ODR) is a way to measure the standard of customer service provided by the seller at Amazon. There are three different parts of the Order Defect Rate by which the performance of the seller in the context of customer service is checked. It is a very important policy of Amazon for keeping the standard of customer service high. It is necessary to keep ODR below 1 percent otherwise account deactivation can be the consequence. However, the three things involved in ODR are as follow;

  1. Negative Feedback
  2. A-to-Z Guarantee Claim
  3. Credit Card Chargeback

Negative feedback:

The negative feedback is a feedback of customer in which he/she mentions about bad customer service of the seller. For instance, if the customer has not received the order then he/she can mention about that on which negative feedback rate will be based. Negative feedback rate is actually the amount of orders which have got negative feedback that is then divided by the quantity of orders in that period. It is very important for the sellers at Amazon to maintain low negative feedback rate. One or two star ratings are not good and effect ODR badly. However, in case of receiving negative feedback from the customer, it is recommended to find out the reason behind that negative feedback and work on the issue by connecting with the buyer.

A-to-Z Guarantee Claim:

A-to-Z Guarantee Claim is registered by the customer and all the claims are calculated in this metric. For instance, in case of dispute between the buyer and seller or if seller doesn’t assist the buyer then in such cases, the customer can use A-to-Z Guarantee Claim and money is given to the buyer by the Amazon. A-to-Z Guarantee Claim is not a good thing for the health of seller’s account. All types of claims are measured in Order Defect Rate.

Credit card chargeback:

Credit card chargeback is also a part of ODR. The disputed credit card charges by the customers are called chargebacks that can be because of claims related to fraud or due to claims regarding poor service. The fraudulent claims are those when buyer claims that he/she has not played any order however, shopping is done from his/her credit card; this mostly happens when credit card is stolen. Amazon then pays back the money to the buyer with extra fine after the claim by the buyer in the bank.

On the other hand, service chargebacks are given when there are complaints regarding service which cannot be avoided like if a buyer receives damaged items, doesn’t receive refund for the products that were returned or not at all receives an order. This credit card chargeback can badly effect seller’s ODR and raise it to or from 1 percent and eventually it impacts the health of seller’s account. Though seller is not at fault here yet Amazon made such policy in order to close the doors of corruption and fraud for the sellers.

Order Defect Rate is a way to not only check the seller’s account’s efficiency but also a tool to aid the sellers. ODR helps sellers to know, clarify and finish the issues faced by the buyers. It is a way for the sellers to improve their customer service. Moreover, ODR makes the sellers to always remain alert and work effectively in order to avoid having 1 or more than 1 percent ODR. Thus, ODR is very useful in ensuring good customer service by the sellers.

Types of claims:

Furthermore, following types of claims effect the ODR of the seller;

  1. Refunding the buyer after the claim.
  2. Cancelling the order by Amazon or seller upon a claim.
  3. Claim by which a decision is pending
  4. Claims which are granted plus debited from the seller’s account.

However, there are certain types of claims which don’t impact ODR which are as follow;

  1. The claims which buyers reject.
  2. Claims which buyers take back.
  3. The claims which are granted plus paid for by Amazon.

Summary:

Order Defect Rate (ODR) is a way to measure the standard of customer service provided by the seller at Amazon and it must not be above 1 percent. There are three different parts of the Order Defect Rate by which the performance of the seller in the context of customer service is checked. First is negative feedback that is a feedback of customer in which he/she mentions about bad customer service of the seller. A-to-Z Guarantee Claim is another thing registered by the customer and all the claims are calculated in this metric.

Credit card chargeback is also a part of ODR. The disputed credit card charges by the customers are called chargebacks that can be because of claims related to fraud or due to claims regarding poor service. All three things impact ODR plus seller’s account’s health badly. Lastly, ODR checks the sellers so that they can work effectively in order to avoid ODR of above 1 percent. Thus, ODR is very useful in ensuring good customer service by the sellers.