One of the worst things you can ever imagine when you check your Amazon account is that your product is removed or your account is suspended.
When it comes to Amazon, the Account Health Rating (AHR) is an important metric for sellers to pay attention to. This rating is based on various factors, including customer service, order accuracy, and sellers’ adherence to Amazon policies.
As Amazon continues to increase its focus on delivering exceptional customer experience in 2023, it will further reinforce the prominence of AHR.
This detailed guide will discuss what you need to know about Amazon’s account health rating in 2023.
So, let’s dive in!
- What is Amazon Account Health Rating (AHR)
- How to find your Amazon Account Health Rating
- How is your Amazon Account Health Rating calculated?
- The difference in the new Amazon Account Health Rating
- To whom is the new Amazon Account Health Rating available to
- What are the Amazon Account Health metrics?
- What happens if you fail the Amazon Account Health Rating metrics
- How can you improve your Account Health Ratings?
What is the Amazon Account Health Rating (AHR)
The Amazon Account Health Rating (AHR) is a metric used to monitor your Amazon account health in Amazon Seller Central. Sellers can use this metric to see an overview of their account performance and monitor it over time.
Your Amazon seller account rating is based on three key attributes:
- Order Defect Rate
- Shipping Performance
- Pre-Fulfillment Cancellation Rate
A higher rating indicates a better overall performance, while a lower rating indicates that the seller may need to improve their performance in certain areas.
Most sellers have a “Healthy” rating, which is reassuring. If your AHR falls below that, you are in an “At Risk” state and may have your selling rights suspended. Sellers with “Unhealthy” ratings are likely to be deactivated already or will be soon.
How to find your Amazon Account Health Rating
To find your Amazon Account Health Rating, follow the given steps:
- Go to Amazon Seller Central account
- Open the Performance menu
- Click Account Health
How is your Amazon Account Health Rating calculated?
The Amazon Account Health Rating is calculated based on a score from 1 to 1000. The metric score is determined by taking into account various key performance indicators such as order defect rate, on-time delivery rate, customer service responsiveness, and seller feedback.
The higher the score, the better the health of the account.
Amazon takes into account all of these factors to determine the overall health of the account and assigns it a score from 1 to 1000.
What’s new in Amazon Account Health Rating
The Amazon Account Health Rating helps sellers better assess the health of their accounts and take action to improve their ratings.
The Account Health Rating (AHR) offered by Amazon has been revamped based on feedback from sellers who have been using it for some time. With the help of these key changes, sellers can now understand their Amazon Account Health Rating and take the necessary steps to improve it.
Here are the key updates.
Holistic assessment of the account
The Account Health Rating offers a holistic assessment of sellers’ standing at risk of suspension, based on the number of policy violations they have incurred rather than simply a list of violations. This rating gives sellers a quick overview of their overall standing.
The new rating system also takes into account policy violations, which can include things like inauthentic items or prohibited items, or listing violations. This allows Amazon to better identify accounts with a history of policy violations.
Dedicated account health specialists
Amazon also introduced dedicated account health specialists to assist customers with their account health. This team of specialists helps customers understand their account health rating, provides guidance on improving their accounts and helps them address any policy violations or other issues.
Who can access the new Amazon Account Health Rating feature
The Amazon Account Health Rating is available to sellers in the United States and Canada, although you can expect more changes over the coming months of 2023. Sellers around the world would have access to this metric from the beginning of 2023.
What are the Amazon Account Health metrics?
In your Seller Central account, under Account Health, there are three main components of your Amazon Account Health Rating.
Customer service performance
Under Customer service performance, you can see Order Defect Rate (ODR) as a key metric. The percentage of customer dissatisfaction with your service is known as the Order Defect Rate. It is one of the most vital components of a seller’s account health rating.
You can calculate it by dividing the number of orders that have been returned or canceled or that have had a customer service issue by the total number of orders within the same duration.
If a seller has a high order defect rate which is above 1%, it can significantly lower their account health rating.
Additional Read: How to improve your Amazon Order Defect Rate
Amazon Policy Compliance helps sellers maintain their Amazon Account Health Rating by ensuring they adhere to all Amazon policies. This includes following guidelines and restrictions on listing products, shipping and fulfillment, customer service, pricing and promotions, and other related policies. By adhering to Amazon’s policies, sellers can ensure their account health rating remains in good standing and that they can uninterruptedly sell on Amazon.
The late shipment rate is also considered when calculating a seller’s account health rating. This is calculated by dividing the number of orders that were shipped late or did not arrive on time by the total number of orders in a certain time.
Late shipment rates can affect both sellers and Amazon, so Amazon defines a preset range of LSR. A healthy account should have an LSR of 4% or less. A high rate of late shipments can negatively affect a seller’s account health rating.
To know more about these metrics, check out this article.
What happens if your Amazon AHR metrics are unhealthy
If your Amazon Account Health Rating metrics are unhealthy, your seller account would be subjected to suspension or termination. This means that you will no longer be able to access your account, list products, or conduct business on Amazon. Your customers will no longer be able to purchase your products, and you will not be able to fulfill existing orders.
Amazon will also ask for a Plan of Action (POA) from you within 48 hours to correct any issues if you do not meet the requirements for Amazon Account Health. If your POA shows that you understand the problem, along with the steps you will take to remedy it, Amazon will not suspend your account.
Moreover, you must take the time to review your performance and determine the root cause of the issues. By addressing the underlying problems, you can take the necessary steps to improve your account health and eventually pass the metrics.
How can you improve your Amazon Account Health Rating?
Now that you know the ins and outs of Amazon account health ratings, let’s discuss how you can maintain or improve them.
Represent your product accurately
To improve your Amazon Account Health Rating, you should accurately represent your product, which includes providing clear product images, descriptions, and other information.
If you want to validate whether you are providing proper information about your product, check out SellerApp’s Amazon Listing Quality Index. It helps you measure the quality of your listing page.
The tool provides a listing quality score, which is based on two components – Discoverability and Desirability. If the score of your listing page is good, then your product is accurately represented.
If a customer purchases the product based on inaccurate information, they would be disappointed and leave negative feedback or reviews.
Respond to customers quickly
Customers always appreciate quick responses, and Amazon takes this into account when determining your rating. This means responding to inquiries and complaints within 24 hours or earlier if possible. You should also ensure that your responses are professional and informative. Make sure that you resolve customer complaints and inquiries as soon as possible.
In addition, you should strive to reduce the number of returns, refunds, and chargebacks that you receive. You can do this by ensuring that customers are satisfied with their purchases.
Ship product on-time
Shipping products on time would definitely improve your Amazon Account Health Rating. This means ensuring that your products are shipped within the time frame specified by the customer. If orders are not shipped on time, Amazon may penalize you, resulting in a lower Rating.
To ensure on-time shipping, you must have a reliable shipping process and an efficient inventory management system in place.
Sell quality products
Selling quality products can boost your Amazon Account Health Rating. Customers expect the products they purchase to be of the highest quality and if they are not, their satisfaction will be affected. Thus, it is essential to make sure that your products are of the highest quality before listing them on Amazon.
Read up on Amazon’s policies
Amazon has several policies in place that are designed to protect customers and ensure a safe and secure shopping experience. These policies cover a wide range of topics, from payment processing to product reviews. You should understand these policies and consider them when operating your Amazon account.
Amazon Account Health Assurance – Recent update
Amazon is introducing a new benefit to its sellers – Account Health Assurance. It ensures their accounts will not be deactivated if they work 72 hours with Amazon to resolve any issues. An Amazon representative will contact sellers whose accounts may be in trouble to help them get back on track. With Account Health Assurance, sellers can feel secure knowing that their business is safe with Amazon. This benefit is currently available for sellers in the U.S. and Canada.
To know more about Amazon Account Health Assurance, check out this link.
In conclusion, Amazon’s Account Health Rating is a vital factor for sellers to remain competitive in the marketplace. Sellers should understand the factors that affect their Account Health Rating and take measures to improve their account health rating.
This guide should help sellers understand the factors that affect their account health rating and take steps to improve it. With a better understanding of the Account Health Rating, sellers can maximize their sales and profits in the Amazon marketplace.