Overview

Starting in the second quarter of 2024, Amazon raised the performance standards that determine account health and Buy Box eligibility. Sellers who ignore the tighter limits risk warnings, temporary suspensions, or loss of prime visibility, making diligent metric monitoring essential for a sustainable business.

Key Points

• Order Defect Rate (ODR) ≤ 1 % — For a seller processing 10,000 orders over the past 60 days, the combined total of negative feedback, A‑to‑Z claims, and chargebacks must stay below 100 to remain compliant.
• Late Shipment Rate (LSR) ≤ 4 % — When shipping 5,000 orders in a single month, no more than 200 deliveries may arrive later than the promised date without an approved excuse.
• Pre‑Fulfillment Cancel Rate (PFCR) ≤ 2.5 % — Canceling 30 out of 1,200 placed orders before they are shipped breaches the threshold and can trigger performance alerts.
• Perfect Order Percentage (POP) ≥ 97 % — A seller who fulfills 2,000 orders should achieve at least 1,940 flawless shipments, meaning on‑time delivery, correct items, and no damage.
• Inventory Performance Index (IPI) ≥ 400 — Maintaining a healthy turnover and minimal excess across a catalog of 500 SKUs pushes the IPI above 400, which unlocks higher storage allocations.
• Advertising Cost of Sale (ACoS) ≤ 30 % — A Sponsored Products campaign that drives $10,000 in sales must keep ad spend at $3,000 or less to stay within a profitable margin.

How to Track These Metrics

1. Access the Account Health Dashboard — Log into Seller Central, navigate to Performance → Account Health, and view ODR, LSR, and PFCR side‑by‑side; for example, a seller with 8,500 recent orders might see an ODR of 0.9 % highlighted in green.
2. Pull Business Reports for POP and IPI — Download the “Inventory Health” report from the Business Reports section; a vendor shipping 1,200 units daily could discover a POP of 96.8 % and identify the 43 orders flagged for carrier damage.
3. Configure Automated Email Alerts — In the tab, set a rule that emails the operations team whenever LSR climbs above 3 %; this gives the team a 24‑hour window to address delayed shipments before the 4 % ceiling is breached.