How to improve your Order Defect Rate on Walmart?
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Walmart Order Defect rate of a Walmart Seller is responsible for your Walmart Seller Performance. This unit can make or break your overall sales so much so that, a below the line score can go as far as to Listing Removal and Account Suspension. It is crucial to analyze the effect of the order defect rate on Walmart seller performance standards, understand how to reduce the return rate at Walmart as well as the cancellation rate at Walmart. All of this adds up to the Walmart Seller Performance and little extra efforts can help you a long way.
Explore further to find more about:
- What are Walmart Seller’s Performance Standards?
- What is Order Defect Rate for Walmart?
- Tips to Reduce Order Defect rate
- Account Suspension and Appeal
- Bonus: Questions you probably have
Learn all about how you can Improve and Maintain your Walmart Seller Performance Scorecard.
What are the Walmart Seller Performance Standards?
Walmart, like all other marketplaces, is highly dedicated to ensuring the customers get the best experience at the end of the day. Hence, Walmart pushes a seller performance scorecard, which Sellers are strictly required to maintain.
Nonetheless, there is a catch to all of this. There is a visible effect of the order defect rate on Walmart seller performance standards. As a matter of fact, Walmart weighs the seller performance in 14 days and 90 days to ensure that Sellers get a chance to improve the performance.
Walmart Seller Performance Expectations
Walmart Seller Performance deals with showcasing the health of your account. Thus the main expectations as a Seller you need to ensure are:
- Order Defect Rate< 2%
- On-Time Shipment Rate> 99%
- Provide Valid Tracking Info>99%
Another thing worth noting over here is that, although Walmart considered Product Rating as a Seller Performance Factor, it is no longer applicable. Order Defect Rate is only the most crucial factor now. Product Rating is completely out of consideration. Though it does affect your listings’ visibility as well as customer’s decision.
Now if you are wondering about where you can see your Score, then try finding your Score Card on Walmart Seller Center.
Seller Score Card
Source: Walmart knowledge base
It is very easy to access your Scorecard and find all about your sales, performance, reviews and valuable advice by Walmart Experts.
Just follow the path below:
Walmart Seller Center -> Analytics -> Performance -> Seller Scorecard.
There are three categories regarding which you can seek some information.
- Order Defect Rate (90 Days ODR Trends)
- Ratings And Reviews
It is highly advisable that you keep track of your performance and check Score card regularly to avoid unpleasant surprises.
Walmart never punishes sellers instantly. They give appropriate warnings and time to improve performance. If the performance remains under the required limitation over a long period of time, it is highly plausible that the account holder will be facing circumstances sooner.
Scorecard provides complete information pertaining to all things that matter the most. And it is wise to make use of all these ready to go analysis.
Keep in mind that the reports are not generated manually, and an automated artificially intelligent algorithm is responsible for generating the report. Thus, the Score Card does not take into account the subjective circumstances leading to the said outcome. During the process of appeal, Sellers can let the authority know about the circumstances along with proof.
And, the scorecard does not immediately update the changes. It considers a multitude of factors while calculating the health of an account, thus, it takes time. In order to see any change, you will have to wait for a while and keep doing what you think will improve the performance in order to maintain the standards.
Walmart Seller Performance Metrics
Walmart Seller Performance is detected based on certain parameters. These are called Performance metrics. Targetting each one of these individual metrics will collectively reflect an excellent performance.
- Order Defect Rate should be less than 2%.
- On-Time Shipment Rate should be greater than 99%.
- Valid Tracking Information should be supplied more than 99% of the time.
It is not really a tough job for honest and active businesses to keep up with all of these parameters. But without sugar-coating things, one can declare, that it requires a lot of persistence and engagement to achieve and keep up the standard performance.
That said, there are things that no one can control. More than ones, you might face a situation where either shipping product in time or maintaining the delivery in time, etc.
The reason due to which this happens should be a genuine one and out of your control. Thereby, make sure you collect proof for such episodes. Here are a few exceptions that Walmart accepts as an excuse.
The circumstances that lead to an underperformance can be:
- Natural Disasters disabling shipment process, network connectivity, etc.
- Fraudulent Activities, hacking or other strikes against the marketplace, Seller account or Customer Account
- Any other episode that rendered you helpless and is a good enough reason due to which your performance was affected
The process through which you can request a modification of Scorecard is a simple one. All you need to do is create a Partner Ticket. The necessary details you need as a support in order to report the out of control episode are:
- Main Reason and Proof against in support of it.
- Timeline matching the order with the defect and the exceptional episode.
- All the order numbers that were affected by the defect sue to the episode.
If your reason behind the failure to meet are those which Walmart can accept, even then your order defect rate will not be immediately updated but no actions will be taken against you. So while Walmart expects you to perform a certain way, you can expect Walmart to be just when it comes to situations beyond your control.
What is Order Defect Rate on Walmart?
Order Defect Rate on Walmart is the total defects (Failure to meet the standards laid by Walmart) on orders ratioed to totals orders placed during that time frame.
Ideally, it should be zero to two percent and practically Walmart lets it be on alert stage for a value between two to six.
Any value above six percent falls under red alert and unexpected Walmart Seller Performance.
Furthermore, the way the Order Defect Rate is calculated is a bit complicated.
The way order defect rate is displayed on the Seller Score Card is, calculated for a period of 90 (3 months) days from 4 months ago to 1 month ago.
Although, at any time, Sellers can check the Rate for a period of 14 days to 90 days for sales history.
The metrics that are accumulated to calculate Order Defect Rate for calculating Seller Performance are discussed here:
Factors affecting Order Defect Rate on Walmart
Order Defect Rate on Walmart signifies the defects in performing the actions related to the orders as per the Walmart Standard Performance guidelines.
Another important thing to know is that all defects related to a single order are counted as one defect.
Calculation of Order Defect on Walmart varies based on time spent selling on Walmart, the total number of transactions, etc.
For transactions more than 50 over a period of four months, ODR is calculated for three months prior to the last month.
On the other hand for sellers with transactions lesser than 50, for more than 4 months, get and ODR for the past one year. Whereas for sellers who have just started selling on Walmart, they will see their current ODR.
Following factors affect the Order on Walmart:
Return Rate at Walmart
The total number of orders with Return and Refund Requests after they have been delivered the account to this rate. The calculation is done over the time period as described for Order Defect Rate on Walmart as given above. The reasons due to which sellers can request returns such as actual products not matching the product image and description. In the event that product quality is poor, or it gets delivered too late or of the wrong size as ordered, the seller is responsible for the dissatisfaction and thus the rating is affected as a consequence.
The occurrence of this can also lead to poor Customer Reviews and thus discourage future sales.
Cancellation Rate at Walmart
The total number of times, seller cancels an order due to the unavailability of the product adds up to the Cancellation Rate. It is linked to the Out of Stock Rate. If a seller is running more than one store and all of them run separately with no integration as well as automatic updates of inventory, then this might occur frequently.
Cancellation Rate signifies your rejection for selling a product that you have listed actively. Thus, your cancellation rate is actually a reflection on the image of Walmart and yields high dissatisfaction. It is crucial, more than any other defect, to control this one.
In some cases, sellers rejected the product due to the realization that they made a mistake in pricing or description or perhaps category.
Delivery Defect Rate
Once payment is made, customers start anticipating the arrival of the product with great intensity. It is difficult sometimes for them to wait till the expected time, a delay on top of that just ruins the experience for them.
And in some cases, the item usually has a time sensitivity and the customer needs it to arrive before the event they need the product for.
Hence, it is highly recommended that sellers provide an accurate expected date of delivery based on calculations involving time, distance, type of shipment, a season of sales, etc.
This is another kind of Defect that arises from a mistake on the seller’s part. The gap in a customer’s expectation and what the seller is actually offering is a common issue.
And the negative catch with this issue is that even though a seller solves the complaint issue, the raised complaint still remains a defect associated with the order.
How to improve Order Defect Rate on Walmart?
How to Improve Seller performance on Walmart?
- Reduce Cancellation Rate
- Reduce Return Rate
- Reduce out of order stock rate
- Reduce Delayed shipment/ Delivery rate
- Reduce Complaints from customers
- Increase positive reviews on Walmart
Tips to Reduce Order Defect rate
Here are some ways to resolve the issues pertaining to Performance and ODR on Walmart:
The best technique to follow these at all times from the start. Initially keeping up with the Performance standards reverently can eventually lead to making it a habit.
- For each order make sure you supply the correct Tracking information along with Tracking link to customers, within the time frame allowed. You are required to inform the customers with active tracking information within 24 hours of Shipment.
- Ensure that customers can get in touch with you and receive a timely response to avoid dissatisfaction by providing correct contact details.
- In order to avoid call drops due to the unsuitable timing issues, mention the active hours along with the time zone in the Seller Center.
- Maintain high-quality customer service even after the sale. Promptly resolve all refunds, return, cancellation, and other queries related within 24 hours.
- Even while improving your performance, in order to gain customer trust and increase sales, focus your strategies on satisfying customers and setting the right expectation for them.
One thing that will help you out is, of course learning the lessons from your errors. The best way to do so is by keeping records. Make sure you keep aside journal as short notes where describe in brief what went wrong and why the particular order came out with a defect and then re-modulate it.
Listing a complete catalog online, developing the right content for listing, maintaining stock and recording orders across multiple marketplaces and your own online store is too much work.
But here is a solution for all your problems: Third-party solution provider. Make use of one such service provider and ensure all your stocks are well aligned across platforms, an automatic acknowledgment and removal of liting automatically as soon as the order goes below 5, etc.
Reduce Cancellation Rate at Walmart
Canceling orders placed by customers due to certain limitations and overlooks on your part somehow leads people to question your sincerity toward the business. To avoid something like this, try to look into some of these actions:
- Keep track of the reasons for which the orders had to be canceled. Keep a journal of it. It will come in handy during the process of Appeal.
- Seek a third-party solution to automate your listings and track inventories better than ever before.
- Make sure no mistakes are there in the description pricing and other such things before the listings even go live.
- Restock product timely. Focus on which products sell faster and which sell slower. Keep track of products that expire frequently, and find out their rate of sales. Stock them accordingly.
Hence, undeniably, selling online is a demanding job, even more than selling through a physical store. Constant vigilance can be great advice to you all.
Reduce Return Rate at Walmart
Little help is required in figuring out why do people return products after the sale? People are not satisfied, they were expecting something else or the product is costlier than it has a right to be.
- Make sure you don’t oversell your product, make it look more than what it is or over-exaggerate the description.
- Keep it closer to the truth, price it competitively and do a check of the listing against your competitors to see what they do with the listing.
- In case of return and refund, make not of the reasons and refund immediately without a fuss to save your product from other issues such as poor reviews and complaints, etc.
- Sell a quality product.
The urge to make your product sound better than it is, to sell better is a natural thing. But realize that the time has changed, neither the platform you are selling through is the conventional one nor the customers are all that naive.
Reduce Delayed Shipments
The moment people pay, they start anticipating the arrival of the product. Make sure you understand this emotion of customers and realize that on-time delivery is something they desire as much as they want quality.
Thereby, ensure that you reverently follow through the promise made by the estimated date of shipment.
The only thing you can do is select your estimated time of shipment carefully. Select the packaging and shipping solution with great care and calculations. Focus on the trends such as which products sell higher in which state and be ready to go accordingly.
Reduce Out of Stock Products
Once again, a dedicated watch on how much you are selling, and which products along with the product lifetime, can help you keep track of all the products without letting them go out of stock. A solution provider responsible for your listings can help you out a great deal.
Account Suspension and Appeal
In case a situation arises where your account fails Suspension, Walmart will notify you via mail. Look into the reasons for account suspension, then pile up the evidence and a strategy for improving the business practice, and appeal quickly.
Additionally, when the suspension is revoked, make sure that you follow the strategy to the T and show results quickly. In case your strategy is rejected, revise it and re-appeal.
Bonus: Questions you probably have
How can I appeal in case of Account Suspension?
Analyze Seller Performance Standards
Develop a new Strategy for Business
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Do everything possible not to keep up but excel beyond that in terms of Seller Performance.
How can I rank my product on Walmart?
Listing is not enough. Increasing product visibility is crucial to sales.
How to increase sales on Walmart?
- Be friendly with your customers to enhance Consumer Experience.
- Use tools to increase sales on Walmart
- Enhance your product details to achieve SEO and Conversion Rate Optimization
- Build Customer Trust with luxurious customer services and experience.
Increasing sales is not a simple process unless dedication and sincerity come into the equation.
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