Your Merchant Performance
What is a defect?
A payment transaction has a defect if we have received an A-to-z Guarantee claim, or a service chargeback on that order. See below for more information about service chargebacks.
What is the Defect Rate (DR)?
The Defect Rate is the number of transactions with a defect divided by the number of transactions processed during the specified period of time. The Transaction Defect Rate is represented as a percentage.
Over what time period is the Transaction Defect Rate computed?
As defects are usually reported several weeks after the orders are placed or received, we use transactions with a defect in the past 60 days to compute the Defect Rate.
If I have both an A-to-z Guarantee claim and a chargeback on an order, do those count as two defects?
No. An order can only have one "defect".
Are buyer-withdrawn or not-granted claims counted as defects?
Yes—all such claims are counted as defects. As Amazon values customer experience and expects merchants to accept responsibility for dispute resolution, any problems that cause buyers to file claims are captured as defects. We understand that over time, merchants with enough transactions will have some claims they feel were unjustly filed. However, the number of these claims should be small as compared to total transaction volume.
What is a service credit card chargeback?
When a buyer disputes a purchase charged to his/ her account with their bank, that dispute is referred to as a chargeback request. Chargebacks are broadly categorized as either fraud or service chargebacks.
A fraud chargeback is when the buyer claims not to have made the purchase at all. These are typically related to stolen credit cards used by fraudulent buyers. Please see the Amazon Pay Merchant Agreement for more details.
In case of a service chargeback, though the buyer acknowledges the purchase, he/ she subsequently indicates to their bank or card issuer that they have experienced a problem with the transaction. Such problems might include the following:
- The buyer claims that they did not receive the product or service
- No refund was given though the product was returned or the service was cancelled
- The buyer received a damaged or defective product.
A service chargeback is similar to an A-to-z Guarantee claim except that the processing and decision is made by the credit card issuer and not Amazon.
For additional information about chargebacks, see Handling Chargebacks.
What is the Service Chargeback Rate?
The Service Chargeback Rate is the number of transactions that have received a service credit card chargeback divided by the number of transactions over the specified period of time. The metric is transaction-correlated and is represented as a percentage. It is one of the components of the Defect Rate metric.
What is the Filed A-to-z Guarantee Claim Rate?
The A-to-z Guarantee Claim Rate is the number of transactions that have received an A-to-z Guarantee claim divided by the number of transactions over the specified period of time. This metric is transaction-correlated and is represented as a percentage. It is one of the two components of the Defect Rate metric. When computing the A-to-z Guarantee claim rate, we consider all claims, in any status, filed by buyers.
Why can't you provide data on recent transactions?
A-to-z Guarantee claims and service chargebacks are submitted, on average, at least 1 week from the date of a transaction. Until that average time has passed, a merchant's defect rate will always be artificially low. Waiting an extended period i.e. 90 days, gives the most accurate view of actual performance. However, in the interest of providing earlier information on your performance, we may report information on orders as early as 60 days post-purchase.
What are the performance targets?
All merchants should be working toward achieving and maintaining a level of customer service that meets the following performance target:
- Defect Rate: < 1%
What happens if my account's performance does not meet the performance targets?
Failure to meet these targets does not necessarily put your account in negative standing, but failure to improve your targets may negatively impact your account. Accounts that fall significantly below the performance thresholds can be temporarily suspended or blocked. Failure to meet these standards over a longer period of time could also result in permanent suspension of the account.
How can I use this information to improve my business?
We hope that you will be able to use both recent and historical information to minimize your defective transactions. This can increase positive customer experiences, resulting in happier customers, and potentially driving increased sales.
Why don't the numbers in the report match details elsewhere in my account?
There are multiple views of merchant performance. The metrics described here are transaction-correlated and they focus primarily on the customer experience. Metrics reported elsewhere in your account are not transaction-correlated and are linked to financial data.
What is a transaction-correlated metric?
When a measure is transaction-correlated, we are reviewing the results for a specific transaction over a given time period.