If you’ve been selling on Amazon for a while, you’ve probably realized that success isn’t just about having a great product or eye-catching listing. It’s also about staying on Amazon’s good side and paying close attention to your Seller Performance Metrics.
These metrics are key to your success, as they are how Amazon gauges your trustworthiness as a seller. Fall below certain thresholds, and you could face account suspensions, lost Buy Box opportunities, or even removal from the platform altogether. But monitor them, nip problems in the bud, and make customer satisfaction high enough to grow your business? Now that’s making the most of metric monitoring.
This guide will walk you through the key performance metrics Amazon uses, what they mean, and how to keep them in tip-top shape.
Why Seller Performance Metrics Matter
Amazon’s number one priority is the customer experience. Everything in their ecosystem, from Prime delivery standards to customer service, is optimized for shopper satisfaction. That means Amazon holds third-party sellers to high standards, and your performance metrics are how they monitor your reliability.
When your metrics are strong, you:
- Maintain your account health: When your metrics meet Amazon’s standards, you lower the chances of account restrictions or enforcement actions.
- Win the Buy Box more often: Amazon rewards high-performing sellers with better placement in the Buy Box, which is where most sales happen on the platform.
- Appear higher in search results: Sellers with excellent performance history are often ranked higher in Amazon search results, helping more customers find your products.
- Qualify for programs like Seller Fulfilled Prime: Meeting performance benchmarks opens the door to premium programs that boost visibility and trust, such as Seller Fulfilled Prime.
- Reduce your risk of suspensions or bans: Strong performance minimizes the chance of enforcement actions from Amazon, giving you more long-term stability and peace of mind.
Core Seller Performance Metrics
These are the main numbers Amazon tracks to evaluate your selling account. Each one ties directly to customer satisfaction and operational reliability.
Order Defect Rate (ODR)
ODR is the percentage of orders that have received negative feedback, an A-to-Z Guarantee claim, or a service chargeback. It’s Amazon’s most basic indicator of how happy your customers are. Even a few unhappy buyers can quickly push your rate over 1%, triggering warnings or account review.
Tips to improve ODR:
- Be honest in your listings; don’t overpromise
- Respond to issues quickly and professionally
- Resolve customer complaints before they escalate to A-to-Z claims
Late Shipment Rate (LSR)
LSR is the percentage of orders shipped after the expected ship date, and ideally it should be less than 4%. Amazon sets high expectations for shipping speed, so if you consistently ship late, you risk suspension from selling and poor customer feedback.
Tips to improve LSR:
- Set realistic handling times
- Use Amazon’s Buy Shipping tool to track shipments
- Monitor your warehouse or supplier closely
Pre-Fulfillment Cancel Rate (PFCR)
Your PFCR is the percentage of orders you cancel before confirming shipment. Cancellations before shipping signal that you can’t manage your inventory or order flow properly. That’s a red flag for Amazon and frustrating for customers.
Tips to improve PFCR:
- Sync your inventory across all channels
- Use inventory management software
- Avoid listing products you don’t physically have in stock
Valid Tracking Rate (VTR)
Your VTR is the percentage of shipments with valid tracking numbers uploaded on time. Try to keep it greater than 95% at all times. This metric is highly important because every buyer wants to know where their order is and will regularly check for tracking updates.
Easy, timely tracking builds trust and helps resolve disputes, so Amazon uses this metric to judge your shipping transparency.
Tips to improve VTR:
- Always upload tracking info within 24 hours of shipping
- Use carriers supported by Amazon
- Integrate your shipping tools with your seller account
On-Time Delivery Rate
This is the percentage of orders that arrive by the estimated delivery date, and you should strive to keep it no lower than 97%. As mentioned earlier, Amazon is obsessed with fast delivery. If your orders are consistently late, even if they’re shipped on time, it still hurts your performance.
Tips to improve On-Time Delivery:
- Choose reliable shipping carriers
- Offer faster shipping options
- Account for holidays and regional delays
Customer Service Metrics
Beyond shipping and fulfillment, Amazon also looks at how well you take care of your customers. These are the numbers that they look at to get a better understanding of the quality of your customer service.
Contact Response Time (CRT)
Your CRT is the percentage of customer inquiries you responded to within 24 hours. Aim to keep this higher than 90% within 24 hours at all times, as Amazon tracks how fast you respond to messages and considers it in your account health. Quick replies make for happier customers and fewer complaints!
Tips to improve CRT:
- Use the Seller App for mobile alerts
- Set up canned responses for common questions
- Consider hiring a VA or customer support team
Return Dissatisfaction Rate (RDR)
Your RDR is the percentage of return requests that receive negative feedback, go unanswered, or result in a claim. Aim to keep this rate at less than 10%. Returns are a sensitive point in the customer journey, so a high RDR shows poor communication or unfair return policies. This can lead to escalated claims or suspensions.
Tips to improve RDR:
- Accept returns gracefully
- Automate returns if possible
- Communicate return procedures clearly
Product Policy Violations & Account Health Rating
In addition to performance metrics, Amazon has a system called the Account Health Rating (AHR). It includes performance metrics and any policy violations related to product compliance, customer safety, or intellectual property.
Account Health Rating (AHR)
Your AHR is a colored score (green, yellow, or red) that summarizes your overall standing with Amazon. A green score means you’re in good standing, while yellow means action is needed. Red is your big warning, as it means your account is at risk of deactivation.
Policy Violations
These include:
- Infringement complaints (IP, trademark)
- Product authenticity or safety claims
- Listing banned or restricted products
- Review manipulation
Amazon may suspend listings or your account if these are frequent or unresolved.
Tips to avoid violations:
- Source from trusted suppliers
- Keep documentation (invoices, safety data sheets, etc.)
- Don’t incentivize reviews
- Stay updated on restricted products
Performance Metrics for FBA Sellers
If you use Fulfillment by Amazon (FBA), most shipping-related metrics are handled for you. But you’re still responsible for:
Inventory Performance Index (IPI)
Your IPI is a score (0–1000) measuring how well you manage FBA inventory. A low IPI can limit your storage capacity at Amazon fulfillment centers, so as a general rule, try to keep your IPI above 400 (though this can vary)
How to improve your IPI:
- Avoid excess inventory
- Keep sell-through rates high
- Remove stranded or unsellable items
What Happens If You Fall Below Amazon’s Standards?
Amazon holds sellers to strict performance benchmarks to ensure a great customer experience. If your metrics drop below these standards, Amazon will take action, sometimes faster than you expect. Here’s what typically happens:
1. You’ll Receive a Warning
If Amazon detects a problem, you’ll usually get a warning email and a notification in your Seller Central dashboard. Warnings often include details on which metric is failing and the threshold you must meet. Consider this your early opportunity to act before more serious consequences occur.
2. Amazon May Request a Plan of Action (POA)
If the problem persists, Amazon may require you to submit a Plan of Action explaining:
- Root Cause: Why the issue happened.
- Corrective Actions: How you’ve fixed the immediate problem.
- Preventive Measures: How you’ll make sure it doesn’t happen again.
When crafting a POA, remember that Amazon prefers clear, concise, and professional plans. Avoid blaming customers, competitors, or Amazon itself. Instead, focus on your responsibility and solutions.
3. Account Suspension
For serious or unresolved issues, Amazon may suspend your account. Suspension means your listings are taken down and your selling privileges are revoked until (and unless) Amazon reinstates you.
This can be temporary if Amazon believes you can correct the issue, but it can be made permanent if you repeatedly fail to meet performance standards or violate policies.
What to Do If This Happens
Falling below Amazon’s standards doesn’t mean your business has to close, but speed, professionalism, and precision in your response are crucial for getting your account back on track:
- Don’t Panic: Acting rashly can hurt your chances of reinstatement.
- Review Your Metrics: Identify the exact numbers and issues that triggered the action.
- Craft a Strong POA: Clearly outline the root cause, corrective actions, and preventive measures.
- Be Honest & Direct: Amazon values transparency over excuses.
- Consider Expert Help: If you’re unsure about your POA or your account is suspended, you may want to consult an Amazon reinstatement specialist or experienced seller consultant.
Pro Tips for Monitoring Your Metrics
You don’t have to babysit your Seller Central 24/7; that’s just not an efficient use of your time when you’re running other parts of your Amazon business. Here are some smarter ways to stay on top of things:
Use the Account Health Dashboard
Amazon’s Account Health Dashboard (found under the Performance tab in Seller Central) is your central hub for monitoring critical metrics. Check your Account Health Dashboard at least once a week. Better yet, set a calendar reminder so it becomes a routine task. This proactive approach helps you catch issues before they turn into account suspensions or policy violations.
Enable Notifications
You don’t have to manually check Seller Central every day, as Amazon can alert you automatically. Here’s how:
- Go to Settings → Notification Preferences in Seller Central.
- Enable alerts for late shipments, buyer messages, policy warnings, and performance alerts.
- Consider setting notifications to forward to your phone or a dedicated business email so you can act promptly, even on the go.
With notifications in place, you’ll always know when something urgent needs your attention without constant manual checking.
Use Third-Party Tools
While Amazon gives you basic monitoring capabilities, third-party tools can give you deeper insights and automation. Some popular choices include:
- Sellerboard: Tracks profitability, expenses, and performance metrics in real-time.
- Helium 10: Offers advanced analytics, keyword tracking, and alerts for listing changes.
- FeedbackWhiz: Automates review requests and helps monitor your seller feedback.
- ManageByStats: Centralizes performance, inventory, and advertising data in one dashboard.
These tools can send instant alerts if metrics dip, automate repetitive tasks, and even forecast trends, saving you time and helping prevent costly mistakes.
Conclusion
The best way to succeed as an Amazon seller is to align with Amazon’s mission: put the customer first. Every performance metric is a reflection of your ability to deliver that experience reliably and consistently. If you use these metrics wisely and monitor them to adapt to issues, you’ll be better equipped to grow a sustainable, profitable business on the world’s biggest e-commerce platform.
Monitoring your reviews is a key part of monitoring your performance metrics. If you’ve noticed a ton of suspicious feedback dragging your metrics down, TraceFuse can lend a hand. Let us scan your listings for non-compliant negative reviews; we’ll report them to Amazon and consistently follow up for their immediate removal to protect your business reputation. Schedule a demo with us today to see exactly how we can keep your review profile pristine!
