Amazon

How to Track Your Amazon On-Time Delivery Rate (OTDR)

  • Written by Rachael Pilcher
How to Track Your Amazon On-Time Delivery Rate (OTDR)

The “Amazon Effect” has radically changed customer expectations about buying items online. Shoppers expect fast, flawless product delivery with every order, and there’s more pressure than ever for ecommerce sellers to meet these demands.

For Amazon sellers, customer satisfaction ultimately decides the fate of their business.

If you’re trading on this marketplace, monitoring your seller metrics is essential to keep everything up and running. The On-Time Delivery Rate (OTDR) is one of the key metrics that your business needs to pay particular attention to.

In this article, we’re looking at why Amazon’s On-Time Delivery Rate (OTDR) is so important for marketplace sellers.

We’ll also walk you through how to calculate and improve OTDR, and show you how Veeqo’s free shipping software can help you maintain good Amazon account health, as well as giving you unique seller privileges that can protect your OTDR.

Table of contents

  • What is Amazon OTDR?

  • How to calculate OTDR

  • How to improve your OTDR

  • How Veeqo helps maintain key Amazon metrics - and more!

What is Amazon OTDR?

Amazon has a range of metrics that help sellers measure their account health, delivery operations, and customer satisfaction levels.

One of these is the On-Time Delivery Rate (OTDR).

Your OTDR includes all shipments which are delivered by their estimated delivery date (EDD) represented as a percentage of total tracked shipments. OTDR only applies to seller-fulfilled orders.

Amazon recommends that all sellers maintain an OTDR greater than 97% in order to provide a good customer experience. However, there’s currently no consequence if you don’t meet this OTDR target.

How to calculate OTDR

Amazon calculates your OTDR by dividing the number of packages delivered on (or before) the promised delivery date by the total number of packages that were supposed to be delivered in that time frame.

For example, if you delivered 100 parcels in the last 30 days, and only 90 were delivered on time, your OTDR calculation would look like:

OTDR = (90 /100) x 100 = 90%

If only 90% of your orders were delivered on or before your specified delivery date, this falls short of Amazon’s expected 97% OTDR for sellers.

How to improve your OTDR

Amazon sellers can face a bunch of obstacles in their quest for the perfect OTDR. These include:

Even though some of these events are outside your control as a business owner, there are steps you can take to maintain and improve your OTDR and keep customers happy.

Demand forecasting

Shipping management software like Veeqo has demand forecasting tools built in, so you can see at a glance when your peak sales seasons are.

This can help you predict which products you should stock up on, so you can meet spikes in buyer demand in your Amazon store without affecting your delivery times.

Real-time inventory tracking

To ensure orders get to your customers on time, optimized inventory management is essential.

The quicker you can get your orders picked and packed, the quicker you can get them on the way to the customer.

Inventory management can get very stressful, very quickly, especially if you’re managing your Amazon store (and multiple other sales channels) using a spreadsheet system like Excel.

That’s where comprehensive shipping software like Veeqo can help, by providing you with an automated inventory system.

Integrating Veeqo with your Amazon store lets you automatically track and control inventory in real time. It’s one of the best solutions to help you prevent stockouts and keep your Amazon inventory up to date.

Further reading: Here's Why You Need to Ditch Excel for Inventory Management

Regular carrier reviews

If you’re relying on a single carrier to get your orders shipped, it’s important that you choose one with a good track record of deliverability.

Even if it’s a mostly reliable carrier, you should carry out regular reviews to see if you can optimize your shipping processes in any way.

If your shipping operations are the primary obstacle to maintaining a high OTDR, then you’ll need to look at switching carriers, or using multiple carriers to keep your metrics and seller reputation on the right track.

How Veeqo helps maintain key Amazon metrics — and more!

As part of the Amazon family, Veeqo helps you easily monitor critical Valid Tracking Rate (VTR) and Order Defect Rate (ODR) metrics, as well as giving you protection from delivery-related claims.

Valid Tracking Rate (VTR)

Like the OTDR, the Valid Tracking Rate (VTR) is another important metric that measures your Amazon account health.

Your VTR calculates the percentage of total shipments that are given a valid tracking number in any given 30-day period. A VTR of above 95% means you’re in good standing with Amazon as a seller — and your VTR must stay above 95% to avoid account suspension.

With Veeqo, there’s no need to worry about your VTR. All labels purchased in Veeqo automatically send a valid tracking ID to Amazon.

This means your VTR will stay at 100% as long as the label is purchased through Veeqo.

Order Defect Rate (ODR)

Your Order Defect Rate (ODR) reflects how well, and how often, a seller can ensure a satisfactory shopping experience for their customers.

This involves calculating the number of returned orders as a percentage of the total number of orders within the past 60 days.

An order is generally considered a defect if it results in:

  • A credit card chargeback

  • A missing item

  • A damaged item

  • An incorrect item

  • Negative buyer feedback

  • A successful A-to-z claim

Amazon expects all sellers to maintain a high level of customer service by maintaining an ODR of below 1%. If you hit an ODR of over 1%, you risk account suspension.

Further reading: 5 Tips to Increase Organic Traffic to Your Amazon Store

A-to-z Guarantee claim protection

One key factor in your ODR is the number of A-to-z guarantee claims you receive from customers. In Veeqo, you can see at a glance which shipping labels can protect you from these delivery related A-to-z claims.

If you ship with one of these Veeqo labels and you make a successful appeal to a claim, it won’t affect your ODR.

If a customer asks to be refunded due to a delivery related issue, Amazon offers protection against A-to-z guarantee claims as long as you:

  • Purchase a ‘Claims protected’ shipping label on Veeqo

  • Ship on time — which will be considered at the moment of the carrier’s 1st scan, not when you confirm shipment

  • Respond to any customer inquiry in Buyer-Seller Messages within 48 hours

Amazon will cover the cost of these claims and they will not affect your Order Defect Rate.

In Veeqo, when you ship your Amazon orders on time using trusted carriers, you'll get 6 times more Amazon-paid refunds for any A-to-z claims.¹

Further reading: How to Avoid Getting Your Selling Privileges Suspended by Amazon

SAFE-T claim reimbursements

Seller Assurance for E-commerce Transactions (SAFE-T) is a policy implemented by Amazon to provide seller protection and insurance coverage for refund requests and claims made by customers.

It serves as a protection plan when orders are fully refunded due to issues such as damage or loss in transit, inaccurate descriptions, or customer dissatisfaction.

If you purchase a ‘Claims Protected’ label in Veeqo, you are able to file a SAFE-T claim for delivery related issues.

In Veeqo, when you ship your Amazon orders on time using trusted carriers, you'll get 1.5 times more SAFE-T claim reimbursements. You can only make a SAFE-T claim if you have not raised an A-to-z claim.²

Further reading: A Guide to Amazon Day Delivery vs Amazon Prime

As a busy ecommerce seller, it can get stressful trying to juggle orders, shipping, and inventory — as well as keeping an eye on your important Amazon metrics to avoid account suspension.

Veeqo’s free, comprehensive business shipping software makes it easy. Plus, you can earn up to 5% back on eligible shipments with Veeqo credits.

Simply create a free Veeqo account, connect to your Amazon stores, and start shipping and saving today.

¹As compared to claims received for orders shipped on-time outside Veeqo. To be eligible for A-to-z claim protection you must: 1) Purchase the shipping label on Veeqo, 2) Ship on time, which will be considered at the moment of the carrier’s 1st scan, not when you confirm shipment, and 3) Respond to any customer inquiry in Buyer-Seller Messages within 48 hours.

²As compared to claims submitted for orders shipped on-time outside Veeqo. To be eligible for SAFE-T claim reimbursement you must: 1) Purchase the shipping label on Veeqo, 2) Ship on time, which will be considered at the moment of the carrier’s 1st scan, not when you confirm shipment.

About the author

Written by Rachael Pilcher

Copywriter

Rachael Pilcher is a freelance copywriter specializing in content for B2B SaaS and tech companies.

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