The Order Defect Rate (ODR) is the percentage of orders that have received any negative feedback, an A-to-Z Guarantee claim or a service chargeback. These claims are divided by the total number of orders during a specific period of time, e.g. within 30 days. If you have fulfilled 100 orders in this interval and you get one negative feedback from a customer and two A-to-Z claims your Order Defect Rate is 3 %. This is far higher than the maximum of 1 % which is recommended by Amazon. A negative claim and one negative claim for the same order is counted as one, not two.
Order Defect Rate is 1 % or even higher?
At First, you will lose your Buy Box for all your products apparat from your FBA products. Amazon wants to protect a positive customer experience and ensure the trust of the customers in the Buy Boy; that’s why the products you ship lose the Buy Box eligibility if you reach the ODR-limit. Furthermore, Amazon could even terminate your account straight away, hold payments in to refund customers. Since the Order Defect Rate is very important for Amazon, you whole agreement with Amazon could be in danger if you reach the 1 % limit – regardless the size and turnover of the company.
Should I consider FBA?
As mentioned before, Amazon is quite strict when it comes to the ODR so FBA is a good way to meet Amazon’s expectations and, if necessary, to decrease the ODR percentage and consequently no to lose you Buy Box eligibility.
