Amazon tracks your performance through specific metrics, each with a threshold you must maintain. Falling below these thresholds puts your selling privileges at risk. Here is what each metric measures and how to stay on the right side of them.
Order Defect Rate (ODR)
ODR is the percentage of your orders that have received one or more of the following: negative feedback (1 or 2 stars), an A-to-Z Guarantee claim (regardless of outcome), or a credit card chargeback. Amazon's threshold is below 1% — meaning no more than 1 in 100 orders should have a defect.
ODR is calculated over a rolling 60-day window. If you have a bad week with several defects, it takes 60 days for those orders to drop out of the calculation.
For FBA sellers, shipping-related issues that lead to A-to-Z claims are typically absorbed by Amazon since they handled the fulfilment. However, product-related complaints still count against your ODR.
Late Shipment Rate (LSR)
LSR measures the percentage of FBM orders that were confirmed shipped after the expected ship date. Amazon's threshold is below 4%. This metric only applies to orders you fulfil yourself — FBA orders are excluded since Amazon handles shipping.
Confirming shipment on time is critical. Even if the courier is a day late, confirming the shipment in Seller Central on time shows Amazon you dispatched promptly. Ship early if possible, and always confirm shipment as soon as you hand the parcel to the carrier.
Pre-Fulfilment Cancellation Rate
This measures the percentage of orders you cancel before shipping (FBM only). Amazon's threshold is below 2.5%. Cancellations happen when you sell a product that is actually out of stock, or when you realise you cannot fulfil an order. Keeping accurate inventory counts prevents most cancellations.
Valid Tracking Rate (VTR)
VTR measures the percentage of your FBM shipments that have valid tracking information. Amazon expects at least 95% of orders to have trackable shipping. Use carriers that provide tracking numbers, and enter them in Seller Central promptly.
How These Metrics Interact
While each metric has its own threshold, Amazon looks at your overall performance pattern. A seller with one metric slightly outside target is treated differently from a seller with multiple metrics in the red. Consistent good performance across all metrics demonstrates reliability and earns you more leeway when occasional issues arise.
Monitoring Your Metrics
Check your metrics weekly in the Account Health Dashboard. Set up email notifications for any alerts. If you see a metric trending in the wrong direction, take action before it crosses the threshold — do not wait for Amazon to notify you.
For FBA-Only Sellers
If you exclusively use FBA, your main concern is ODR. The shipping-related metrics (LSR, VTR, cancellation rate) do not apply because Amazon handles fulfilment. This is one of the underappreciated benefits of FBA — it removes three of the four main performance metrics from your plate.
Focus on product quality, accurate listings, and responsive customer communication. These are the factors within your control that keep your ODR healthy and your account in good standing.