If you’ve chosen to use the FBA model, then you face an added advantage over FBM sellers. Why? Because you pay a premium for Amazon’s logistics. FBM sellers don’t have the “luxury” of relying upon external fulfillment services and MUST attend to Shipping Performance metrics on their Amazon Performance Health dashboard.
Today, we’ll address Delivery Performance Metrics that are specifically applicable to FBM sellers and the strategies to stay within target!
Shipping Performance Dashboard – Defined
► Late Dispatch Rate – Target is < 4%. LDR is the number of times your shipment confirmations are untimely or missing, over the total number of orders you receive.
► Valid Tracking Rate – Your goal is a target is > 95%.
Carrier name and tracking ID, are immediately validated by Amazon. Invalid tracking information or failure to upload accurate tracking information are calculated (over 30 days).
Stay within target by:
- Getting orders out quickly – upload correct tracking information.
- Use Reliable Shipping Carriers – Amazon customers not only expect items delivered when promised, they also have the expectation that they will receive regular notifications when items are in the fulfillment, shipping, and delivery queues.
- Add Automation – Major couriers and carriers in North American and European Marketplaces have automated apps that integrate with your Amazon store
Customers actively track their purchases. Precise tracking information is crucial for all FBM Sellers.
► Pre-Fulfilment Cancellation Rate – Target is < 2.5%. Calculated when sellers cancel orders (without the customer requesting cancellation).
Stay within target by:
- Keeping inventory counts accurate. Many FBM sellers have their merchandise listed on additional marketplaces and fulfilled via a 3PL warehouse.
- Adding Automation. Robust software applications will sync with your inventory and your warehouse to keep your inventory counts meticulous.
While selling on Amazon can be a harrowing journey, there are ways to keep your risks low:
Staying abreast of your Amazon Performance Health is the KEY to success at Amazon. Amazon sellers must realize that every aspect of their performance is constantly monitored and audited. Sellers with stellar account health reap many rewards – including better chances at winning the coveted buy box!
At AIA, we work with our clients as they join the Amazon Seller’s journey. While many of our clients are seasoned sellers, we have many just beginning! If you’re a novice and want to learn more about the performance health dashboard, we have a great article on improving your ODR (Order Defect Rate) that is a great place to start! Each week we publish tips for Amazon sellers – strap yourselves in – it’s time for a wild ride!
