One market trend is to source from China and sell on Amazon through various business models that have been evolving in recent years.
It is essential to manage the entire supply chain correctly in order to prevent Amazon itself from preventing the vendor (the user who intends to sell) from accessing the platform with its products. Amazon uses various KPIs (key performance indicators) to assess the trustworthiness of sellers, in order to to “reward” the best performing ones (by making them climb on search pages or through other tools) and “punish” those sellers who are not very reliable and who do not represent the quality of service demanded by Amazon.
The achievement of these KPIs depends on how your purchasing chain is structured, the reliability and quality of the supplier to which the Italian company sources and compliance with other fundamental indicators required by Amazon.
Let’s now list some criteria for evaluating KPIs by Amazon:
The three evaluation elements taken into account by Amazon are:
• Order defect rate < (ODR): 1%
• Percentage of non-stock items sold on Amazon (pre-fulfillment cancellation rate) < 2.5%
• Late ship rate: < 4%
Percentage of orders with negative feedback (ODR)
“All Amazon sellers must strive to achieve and maintain a level of customer service that results in a percentage of orders with negative feedback of no more than 1%.”
All Amazon sellers (including importers) are bound to guarantee a rate of less than 1% of returns generated by product discrepancies; if the defect rate exceeds this percentage, Amazon may suspend the vendor’s account and prevent him from selling on the platform again.
That said, it is essential to choose reliable suppliers who guarantee a very low degree of defectiveness and, to do this, it is necessary to rely on competent structures capable of assessing the reliability of suppliers and managing them on behalf of the importing company.
Otherwise, the company will end up with a very high rate of defective products, jeopardizing the ability to market on Amazon.
Another fundamental element in this business strategy, in order to limit the percentage of defective products, is the quality control audit carried out by bodies specialized in this.
ImportazioneFacile.it is able to organize control audits in order to verify the conformity of the purchased product before making the balance to the supplier, in order to check the status of the order and its compliance with the customer’s initial order in time.
Percentage of non-stock items sold on Amazon
Stock management is another fundamental element in the work of the importer working on Amazon: finding orders canceled due to a lack of product is frustrating and harmful: Amazon controls stock levels and the number of orders not fulfilled due to stockouts, going to “punish” sellers who are unable to deliver orders by worsening their rating or expelling them from the platform if this happens frequent.
“It is advisable to be followed by professionals like our agency throughout the needs management process, so as not to incur delays and non-delivery of the material.”
Delay rate in shipments
The latter index is related to the rate of cancellation of orders: without adequate planning and control of the supply chain, it is easy to incur delays or missed deliveries.
These issues will lead to penalties in Amazon storefronts, as well as significant economic damage for importers.
