February 13, 2023

A Guide to Understanding Amazon Account Health Rating in 2023

Are you an Amazon seller in need of a better understanding of the Amazon Account Health Rating? This guide has everything you need to know about what it is, how it works, and ways to improve your rating for 2023.
A Guide to Understanding Amazon Account Health Rating in 2023
A Guide to Understanding Amazon Account Health Rating in 2023

A Guide to Understanding Amazon Account Health Rating in 2023

The Amazon Account Health Rating is one of Amazon’s business tools which you can find in your Amazon Seller account. 

As an Amazon seller, your Amazon Account Health Rating is an important metric you need to pay attention to. 

It is derived from various performance-driven criteria including providing quality products and customer service.

If you are selling on Amazon and wondering what the Amazon Account Health Rating is all about, we are here to break it all down for you. 

Read on as we explore all you need to know about the Amazon Account Health Rating.

What is the Amazon Account Health Rating (AHR)? 

Amazon logo and blue health image

To sell successfully on Amazon, you need to follow certain policies and guidelines. 

The Amazon Account Health rating is one of the metrics you need to maintain to continue selling on Amazon

Having a poor Amazon Account Health rating can lead to account suspension or even removal. The Account Health page on your Amazon Seller Central account shows seven major metrics you need to monitor to maintain your selling privileges on the Amazon marketplace. 

How to check your Amazon Account Health Rating 

You can find your Amazon Account Health Rating by following these three simple steps;

  • Find your way to your Amazon Seller Central account.
  • Next, go to the Performance menu 
  • Lastly, click on Account Health

On your Account Health page, you will be able to see how well you are performing based on Amazon’s policies. 

On the page, you will see three main metrics: 

  • Customer service performance
  • Product policy compliance 
  • Shipping performance 

Customer service performance 

The customer service performance metric measures your overall customer satisfaction. In other words, it indicates how satisfied your customers are. This is measured as your Order Defect Rate. Your Order Defect Rate is derived from three individual metrics: A-to-Z Guarantee Claims, Negative Feedback, and Chargeback Claims. A good Order Defect Rate should be less than 1%. 

Product policy compliance 

If you are selling a product on Amazon, it is important to keep an eye on Amazon’s product policies to avoid being at risk of account suspension. Here are a few policies to check out on the Product Policy Compliance section of your Account Health page: 

  • Product authenticity customer complaints
  • Product condition customer complaints
  • Listing policy violations
  • Restricted product policy violations
  • Customer product reviews policy violations
  • Suspected intellectual property violations
  • Received intellectual property complaints

If you get a notification for a violation of any of these policies, it is important to respond immediately to avoid account suspension. 

Shipping performance 

Amazon considers the following metrics to measure your shipping performance for seller-fulfilled orders: 

  • Late Shipment Rate (should target less than 4%)
  • Valid Tracking Rate (should target 95% and above
  • Pre-fulfillment Cancel Rate (should target less than 2.5%) 

Note that if you fulfill your Amazon products using Amazon FBA, Amazon will be accountable for the shipping performance. 

How is your Amazon Account Health Rating calculated? 

To calculate your Amazon Account Health rating, Amazon considers various factors including order defect rate, customer service responsiveness, on-time delivery date, and so on. 

Based on these factors, Amazon assigns a score between 1-1000. The higher the score, the better your Amazon Account Health Rating.

Amazon Account Health Rating Metrics 

metrics

Now we know what the Amazon Account Health Rating is all about. Let's look at important metrics you should pay attention to on your Amazon Health page: 

  1. Order Defect Rate (ODR): The Order Defect Rate is a metric that measures your ability to leave your customers happy and satisfied as the A-to-Z guarantee claims. This is measured within the past 60 days. Negative feedback, successful A-to-Z claims, and credit card chargebacks should be kept below 1% to maintain a good ODR. 
  2. Late Dispatch Rate: The Late Dispatch Rate (LDR) is a metric that measures the number of orders that had their shipping confirmation posted after the expected ship date. The LDR is measured over a timeframe of 10 or 30 days. To avoid a warning or account suspension, it is important to keep your LDR below 4%. 
  3. Cancellation Rate: The cancellation rate is a metric that measures the number of orders canceled by the seller within 7-day timeframes. The Cancelation rate metric only measures seller-fulfilled orders. As an Amazon seller, it is important to maintain a percentage lower than 2.5%.  
  4. Valid Tracking Rate: The Valid Tracking Rate (VDR) is a metric that measures the total number of self-fulfilled orders given a valid tracking number within 30 days. This metric should be maintained above 95%. 
  5. On-Time Delivery Rate: The On-Time Delivery Rate measures the total number of self-fulfilled orders that made it to their doorsteps at the estimated delivery date. Ensure this metric is kept above 97%. 
  6. Return Dissatisfaction Rate: As an Amazon seller, your Return Dissatisfaction Rate (RDR) should be kept below 10%. Getting negative feedback (Negative Return Feedback Rate), not responding to return requests within 48 hours (Late Response Rate), and denying the return request (Invalid Rejection Rate) can increase your RDR. 
  7. Invoice Defect Rate:  The Invoice Defect Rate is a new metric introduced in 2020 to help third-party sellers track their invoicing experience with Amazon Business Customers. Your Invoice Defect Rate measures the number of orders placed by Amazon Business customers who have not received a downloadable VAT invoice within one business day after shipping confirmation. Ensure your Invoice Defect Rate falls below 5%. 

Key updates to the Amazon Account Health Rating

Based on feedback from Amazon sellers, Amazon has improved the Amazon Account Health Rating to help sellers understand what their AHR is and how they can improve it.

These key updates include: 

Holistic Assessment metric

To help sellers understand their Amazon account health, the new Amazon Account Health rating gives sellers a holistic assessment based on an accumulation of policy violations. With this update, sellers can get a quick look at their overall standing.  

Policy violation

With this update, Amazon sellers will see a list of policy violations along with their level of severity. This new system takes into account things like prohibited items and Amazon seller listing violations. With this rating system, you can prioritize violations with the highest risk. 

Dedicated account health specialist  

In addition to the above updates, Amazon has also introduced a team of specialists to help Amazon sellers understand their account health rating, address policy violations and come up with ways to improve their account health. 

Who does the New Amazon Account Health Rating apply to? 

The new Amazon Account Health Rating is available to Amazon sellers in the United States and Canada. However, in 2023, these updates will be available to sellers outside the US and Canada. 

What happens if you have a low Amazon Account Health Rating 

account metrics

If your Amazon Account Health Rating is low, your Amazon Seller account will be subjected to suspension or termination. 

If this happens, you will no longer be able to list products or access your account. Also, you will not be able to fulfill existing orders and customers won't be able to buy products from you. 

Amazon will request a Plan of Action (POA) within 48 hours to correct any Account Health issues. If this Plan of Action indicates that you understand the problem and have the right steps to fix it, Amazon will not suspend your account. 

How to improve your Amazon Account Health Rating 

Now you understand what your Amazon Account Health Rating is and maybe yours doesn't look so good, here are simple tips to help you improve or maintain your account health rating: 

Offer quality products

Amazon is passionate about offering the best products to its customers. As an Amazon seller, to avoid negative feedback which could have your Amazon Account health Rating, ensure you list and sell quality products.

Accurately represent your products  

When customers come to your product page, they want to find all the information they need to make a buying decision. 

As an Amazon seller, ensure your product is well-represented. Misinterpretation can lead to negative feedback and low conversion rates. To avoid this, use images and product descriptions that properly explain what your product is and what it is about. 

Ship your products on time

Shipping your products on time can positively impact your Amazon Account Health Rating. You want to ensure that you ship all products before the expected shipping date. To do this effectively, you want to ensure you have a reliable shipping process and proper inventory management. To maintain your account health, ensure that your late shipment date is kept below 4%. 

Respond to customers quickly

Customer service is an important factor when it comes to your account health rating. Ensure you respond to customer inquiries and complaints as promptly as possible. This should be within 24 hours or less. Your response should also provide quality information and all complaints should be resolved as quickly as possible. 

Overall, ensure your customers have the best shopping experience to avoid refunds and chargebacks. 

Understand Amazon's policies 

Amazon has different policies that cover various aspects of selling on the Amazon marketplace. From selling policies to product reviews and payment processing. Ensure you stay up to date with all policies to avoid any penalties from Amazon. 

Bonus tip: Sell with Amazon FBA

What if we told you that you can bypass many of the AHR metrics and maintain good account health? Selling with Amazon FBA is one way to do that. 

Many of the Amazon Account Health Rating metrics apply only to self-fulfilled orders. With Amazon FBA, you take that burden off your shoulders. 

Conclusion 

Maintaining your Amazon account Health should be a top priority while selling on Amazon. 

Thankfully, you can work with a team of experts to help you maintain your account health while attending to other areas of your business. 

If you need professional help, you can reach out to experts at ePlaybooks and schedule a meeting right away. 

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