Summary: Today, we’ll learn about how AHR measures your brand health and what you can do to keep your ratings at an acceptable level. 

Key Takeaways:

  • The AHR of your Amazon account depends on three factors: the rate of order defects, shipping performance, and pre-fulfillment cancellation rate.
  • A low AHR can lead to the suspension of your Amazon account.
  • There are a number of ways to improve your AHR. This includes improving your customer service, shipping timings, and product listing.

One of the worst things that can happen to an Amazon seller is logging in to find that your item has been taken down or your account has been stopped. This shock is even worse when you have no idea what you did wrong to deserve such a hard punishment. To meet the needs of buyers who want more information, Amazon created the Account Health Rating (AHR). 

This update from Amazon gives buyers the information they need to follow the rules. Read on to learn more about the new color-coded grade and how to make the most of it.

What is the Amazon Account Health Rating (AHR)?

In Amazon Seller Central, you can use the Amazon Account Health Rating (AHR) to monitor your Amazon account health. This measure lets sellers see how their account is doing overall and monitor it over time.

The score for your Amazon selling account is based on three main factors:

  • Rate of Order Defects 
  • Shipping Performance
  • Pre-Fulfillment Cancellation Rate 

If the rating is higher, it generally means that the seller did a better job. On the other hand, if it’s lower, it means that the seller may need to do better in some areas.

It’s good to know that most sellers have a “Healthy” grade. However, if your AHR drops to the “at risk” state, you may lose the right to sell. Furthermore, sellers with scores of “Unhealthy” have probably already been removed or will be soon.

What are the Amazon Account Health Metrics?

There are three parts to the Account Health dashboard. Each part has its own set of policy-related standards and limits to meet. Customer Service Performance, Policy Compliance, and Shipping Performance are the three things that determine a score. 

Customer Service Performance

Order Defect Rate (ODR) is the most important rule here. It must be less than 1% in the last 60 days. Besides, negative comments, A-to-Z Guarantee claims, and refund claims are where ODR comes from. Therefore, your goal should be to keep all of these measures as close to 0 as possible. However, keep in mind that Customer Service Performance is meant to be hard to perfect. This is because Amazon values its customer service and has high standards for the best help in the industry. 

Product Policy Compliance

This is the longest part, and it has all the violations or reports that your ads may get. Intellectual property, product safety, and product validity are all part of this. On Amazon’s official website, you can see the full list of rules that make up Account Health Rating. Nonetheless, sellers should try to have no problems with any of the rules. If any do come up, they should be fixed right away so their items don’t get taken off the market.

Product Policy Compliance is an easier measure to handle than Customer Service. This is because the number of complaints and the severity of the complaints are usually proportional to the size of the account.

Shipping Performance

It is pretty easy to understand the groups and thresholds:

  • Late Shipment Rate – under 4%
  • Pre-Fulfillment Cancel Rate – under 2.5%
  • Valid Tracking Rate – over 95%

Remember that Amazon’s shipping performance can be hard to nail because of problems with the supply chain and stocking issues. 

What Happens If You Have a Low AHR?

If the Health Rating for your Amazon Account is low, your Amazon Seller account could be suspended or closed.

This means you won’t be able to add goods or get into your account after this happens. Moreover, you won’t be able to fill orders that are already in. And what’s worse is, people won’t be able to buy things from you either.

‎If there are any problems with your account, Amazon will ask for a Plan of Action (POA) within 48 hours. You won’t have your Amazon account shut down if this Plan of Action shows that you understand the problem and know how to fix it. 

How to Improve Your AHR?

Now that we have a good idea of what Amazon Account Health Rating is and how it can affect the health of your account and business as a whole, let’s talk about how to make it better:

Represent Your Product Accurately

Images and descriptions of products should always be as clear and precise as they can be. Otherwise, customers may give you bad feedback if they don’t understand something. And you don’t want that, especially since it’s easy to avoid it in the first place. So, you should probably focus on Amazon listing optimization or take the help of an Amazon marketing consultant.

Respond to Customers Quickly

The fact that customers expect quick answers shouldn’t be a surprise these days. Amazon also wants its customers to feel at home, even though their services are almost “instant” online. For example, if a customer contacts you, make sure to answer them within 24 hours. This will help you keep your account and business healthy, which will make you a trustworthy Amazon seller.

Ship Products On-Time

If you ship items on time, your Amazon Account Health Rating will go up. This means making sure that your goods are shipped by the date and time that the customer gives you. If you don’t ship items on time, Amazon may punish you by giving you a lower rating.

To ship on time, you need a solid shipping process and a good method for keeping track of your inventory.  

Sell Only Quality Products

Naturally, selling only good items is one of the best ways to keep your customers happy. In other words, this means not lying about the goods and giving them to the customer exactly as promised. In addition, people love products that are both unique and high-quality. This means that the more high-quality products you have, the better your customer service will be. Furthermore, Amazon will be happy to show this in your Account Health Rating.

Conclusion

To sum up, Amazon’s Account Health Rating is an important thing for buyers to keep up with the competition in the market. People who are selling things should know what affects their Account Health Rating and do what they can to raise it. 

If you want any help with your Amazon listing optimization, please contact us.