Amazon Account Health

Amazon Account Health: The Purpose & The Importance

amazon account health rating

In a previous blog post, we were talking about how to prevent your Amazon account from being suspended and what to do in case that happens.

We also mentioned that monitoring the health of your account is one of the strategies that decrease the chance of you being restricted from selling. Let’s dive deeper now into what this strategy entails and how to use it in your favor.

What’s the purpose of the Amazon Account Health page?

The Account Health page provides an overview of your selling account’s adherence to the performance targets and policies required to sell on Amazon. To ensure that they are delivering a great experience for the customers, Amazon might take action on these metrics if you do not comply with their targets.

This means for you as a seller the account health is as important as achieving your KPIs and your sales target. For your customers, it means having quality products and good customer service.  After all, for Amazon, it’s important to have satisfied customers and sellers who are following their policies. 

Amazon reviews performance on a regular basis. They inform the sellers if they are not complying with the policies and that their account is at risk. The goal of this review is to give the opportunity to the sellers to improve their performance before they take further actions.

Why is a Complete Check-up on the Amazon Seller Account Important? 

There is nothing worse than having your account suspended and not knowing the cause of it. That’s why it’s critical to be aware of your performance in Amazon to prevent getting your account suspended.  

You should take all the measures to maintain a healthy Amazon account so you can take proper measures early on.

The account health check-up includes an analysis of the key metrics to make sure your account complies with all policies, regulations, and performance targets required by Amazon.

You can find these key metrics on the account health page in the Seller Central under the performance tab.

Seller Central > Performance Menu > Account Health

how to find amazon account health
What are the key metrics to watch for?

The account health is made of three important metrics. These are Customer Service performance, Product Policy Compliance, and Shipping Performance.

Further on, these metrics are measured based on: 

  • Order Defect Rate 
  • Product Policy Compliance
  • Suspected Intellectual Property Violations
What do these metrics really show?

The order defect rate shows you the percentage of the total orders that have negative seller feedback, an A to Z guarantee claim that was not denied, and a chargeback. The target should be below 1%.

The product policy compliance is the list of all policies that Amazon requires you to follow. If you don’t follow them your account will be at the risk of a possible suspension. Make sure you are not violating any of these policies and check out the product policy compliance section of the account health page.

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

If Amazon sends you a notification about your account performance you should respond immediately. Amazon doesn’t want sellers that have policy issues or are violating them.

The shipping performance is something that is measured by Amazon as well. This is made based on a late shipment rate and a violent tracking rate. The target store late shipment rate is below 4 percent, and for the valid tracking number, the target is above 95%. You should remember that you’re responsible for the orders fulfilled by merchants and Amazon is responsible for the FBA performance.

Some other key metrics that are important for you as a seller are late dispatch rate, cancellation rate, valid tracking rate, on-time delivery rate, return dissatisfaction rate, and invoice defect rate

What will happen to your account if you fail the Amazon account health metrics?

This is the question that everybody is afraid to ask but can make or brake your relationship with Amazon. 

If you fail the targets set by Amazon they will require a plan of action from you for improvement of your account performance within 48 hours. The plan can be either accepted or denied but Amazon. If it’s accepted it will show them that you understand the problem and you have the intention to solve it. On the contrary, your account will be suspended.

Like we said earlier, Amazon is a company that wants to keep the customers satisfied and will do everything to make the sellers follow their rules and regulations. Having good account health is vital to scale in the marketplace. It is crucial for you as a seller to make daily checkups on your account health and react when it’s needed.

Keeping an eye on your Amazon Account Health should be among the top of your priorioties. Our mission here at AMZ Operations is to remove Amazon sellers from everyday tasks such as this one and to keep everything under control on your behalf while you focus on the more important things that bring profits.

If you’re interested in going through a complete account check-up, following with a full-time Amazon account health maintenance, feel free to schedule a call and leave the rest to us.