The trust and satisfaction of the customers of Amazon is and has always been the most important thing for the company. That is why Amazon has published three targets for sellers so that buyers fell more secure. The Seller Performance Measurement gives information about how well you have done in obeying these rules and not doing too well may result in the removal of your selling privileges. The targets, the so called Seller Performance Targets, which should be achieved are an order defect rate under 1 %, a pre-fulfilment cancel rate under 2.5 % and a late shipment rate under 4 %.
What do these terms mean?
Order defect rate (ODR):
This is the percentage of your orders that have received a negative feedback, an A-to-z Guarantee claim or a service credit card chargeback.
Pre-fulfillment cancellation rate:
This is the percentage of orders which have been cancelled by you or your company prior to shipment confirmation divided by the number of orders in the time period of interest.
Late shipment rate:
This is the number of orders with shipments that are not confirmed by the expected ship date divided by the number of orders in the time period of interest.