Understanding Amazon Account Health: Key Metrics and Common Questions Answered
Amazon's Account Health FAQ covers the key performance metrics sellers must monitor, including ODR, late shipment rate, and cancellation rate, along with guidance on feedback removal and report discrepancies.
Overview
Amazon's Account Health dashboard is one of the most important tools available to third-party sellers, providing a centralized view of the performance metrics that determine whether your selling privileges remain in good standing. Understanding how these metrics work, what thresholds Amazon enforces, and how to address issues when they arise is essential for every seller operating on the platform.
Key Points / What Sellers Need to Know
- Order Defect Rate (ODR) - This is arguably the most critical account health metric. It measures the percentage of orders with defects, including A-to-Z Guarantee claims, chargebacks, and negative feedback. Amazon requires sellers to maintain an ODR below 1%.
- Late Shipment Rate - This metric tracks the percentage of seller-fulfilled orders that are shipped after the expected ship date. Amazon's target is to keep this rate below 4%.
- Pre-Fulfillment Cancel Rate - This measures how often sellers cancel orders before shipment. Amazon expects this rate to remain below 2.5%, as frequent cancellations signal inventory management problems.
- Account Health Rating (AHR) - Amazon uses a composite score that factors in policy violations and performance metrics. Sellers should aim to keep their AHR in the "Healthy" range to avoid restrictions.
- Feedback vs. Defects - Not all negative feedback counts as a defect. Understanding the distinction between product reviews, seller feedback, and defect-eligible feedback is important for managing your metrics effectively.
How Account Health Metrics Are Calculated
Amazon evaluates account health using a rolling window approach, typically looking at performance over the trailing 60-day period for most metrics. The Order Defect Rate combines three separate components: negative seller feedback (1-star and 2-star ratings), A-to-Z Guarantee claims that are not denied, and credit card chargebacks filed by buyers. Each of these contributes to a single percentage that represents your overall defect rate. It is worth noting that the calculation considers unique orders — if a single order receives both negative feedback and an A-to-Z claim, it still counts as only one defect. Sellers sometimes notice discrepancies between different reports in Seller Central because each report may use different date ranges, attribution windows, or calculation methodologies.
Analysis & Recommendations
Why This Matters
Account health metrics directly determine whether sellers can continue operating on Amazon. Falling below thresholds can result in listing suppression or account suspension, making this essential knowledge for every active seller.
Key Takeaways
- Order Defect Rate must stay below 1%, combining negative feedback, A-to-Z claims, and chargebacks into one metric
- Report discrepancies across Seller Central are normal due to different calculation windows and attribution dates
- Negative buyer feedback can be removed in specific cases such as product reviews mistakenly left as seller feedback or FBA-fulfilled order complaints
- Proactive weekly monitoring of account health metrics is far more effective than reacting after thresholds are breached
Recommended Actions
- →Review your Account Health dashboard weekly and set up notifications for any metric approaching Amazon's thresholds
- →Use the Feedback Manager to request removal of feedback that qualifies under Amazon's removal policy
- →Consider shifting to FBA for products with high late-shipment risk to offload delivery-related account health exposure
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