Is a higher Amazon sell-through rate better? How can Amazon improve its performance?

Many merchants on Amazon are concerned about the sales rate data, because this data can show the sales of the store, but viewing the data is different from analyzing the data. Although many merchants know where to check the sales rate, they don’t know how to check it. So is the higher the sales rate, the better?

Is a higher sell-through rate better on Amazon ?

After years of understanding Amazon's performance appraisal policy, I have summarized some experience to share with you. The performance indicators of the Amazon official platform are the relevant behavioral standards set for third-party sellers, requiring them to operate their own stores carefully according to the relevant indicators, create the best possible service experience for consumers, and serve all consumers within the prescribed indicator range. If Amazon sellers fail to meet the prescribed indicators or seriously exceed the indicators, the account operation status may be affected.

Several common performance indicators on the Amazon platform include order defect rate, order cancellation rate, order late shipment rate, effective tracking rate, etc.

Order defect rate, abbreviated as ODR in English, is an indicator set by the official Amazon platform to measure the service level of sellers. Its specific assessment regulations are the ratio of the number of defective orders in the seller's store to all orders within two months.

The order cancellation rate refers to the ratio of the number of self-delivery orders that the seller cancels before confirming delivery to the total number of orders within a certain period of time. The order late delivery rate refers to the ratio of the number of self-delivery orders that the seller fails to deliver to consumers on time on the agreed delivery date to the total number of orders within a certain period of time. The effective tracking rate refers to the ratio of the number of valid package tracking codes provided by the seller at the time of delivery to the total number of shipped packages. The above indicators are only part of the many performance indicators of the Amazon platform.

How can Amazon improve its performance?

1. Clear out excess inventory

Redundant inventory means that at least one item in the product inventory has not been sold for 90 days and has no sales. The product can be supplied for more than 90 days. The cost of keeping the product in stock will be high. Amazon will identify this type of inventory as redundant inventory. Amazon must dispose of redundant inventory in a timely manner because redundant inventory will reduce the seller's inventory performance score.

2. Increase the sales rate of FBA goods

Amazon defines the FBA sales ratio as the total number of products sold by the seller in the past 90 days divided by the number of products that the seller has evaluated for sale during this period. In other words, the more products the seller sells, the higher the corresponding FBA sales ratio will be, which is also conducive to improving inventory ratings.

3. Timely repair of Amazon inventory with no sales information

If the product is displayed as stored in the operation center but there is no relevant sales information, Amazon will identify it as Amazon inventory with no sales information. If the seller encounters a product with such a situation, the seller should restart the sale or remove the relevant product for timely repair.

Being familiar with Amazon's various performance indicators is important for Amazon sellers to run their stores smoothly. Some common performance indicators on the Amazon platform include order defect rate, order cancellation rate, order late rate, effective tracking rate, etc., which all merchants need to pay attention to.

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