The Plot Thickens: Valid Tracking Rates are Here
As major carriers started providing tracking numbers free of charge in the U.S., Amazon announced the Valid Tracking Rate; a new metric available in Seller Central that started on July 7th. Amazon is encouraging all sellers to take advantage of the fact that tracking numbers are free by offering them on all their shipments.
The Wind of Change
Amazon’s going out of its way to keep up with the times. Just last month the Beta Manage Inventory made its debut to mixed reviews. Now the forums are abuzz with the news of a brand new metric in Seller Central. Valid Tracking Rate is, as the name suggests, the ratio of valid tracking numbers provided to customers out of all confirmed shipments. A tracking number is deemed valid if it has been scanned at least once by a courier.
Two categories, namely Office Products and Shoes, must now provide valid tracking numbers for a whopping 95% of shipments within the US. Their accounts will display the metric separately.
However, sellers operating in all other categories are not explicitly required to provide tracking numbers, though Amazon recommends it. Their tracking rates are available in the Account Health section, but they have no importance in the grand scheme of things. What is the big deal, then?
Peace of Mind for the Customers
According to Amazon’s official notification email, 40% of all communication received from customers is shipment status related. Also, customers are 35 times more likely to use the ‘Where’s My Stuff’ feature if they don’t have a tracking number.
Interestingly, customers are apparently more willing to leave higher seller ratings for tracked deliveries. What’s more, tracked shipments seem to be 1.7 less likely to have a defect, which is reflected in the number of claims and negative ratings sellers receive.
Even Break for Sellers
Sellers may stand to gain from tracking all their shipments. Here’s how:
- A customer claim for untracked and undelivered goods is automatically deemed successful for the customer even if the item is eventually located. So, having a tracking number protects the seller from any unwarranted losses because it helps determine who holds responsibility.
- Sellers with excellent credentials may qualify for reduced handling and transit times. These are the handling and transit times stated in the ‘Delivery’ section of their listing and in the ‘Domestic Shipping Rates’ section of their profile. They carry added responsibility, but they give sellers a competitive edge.
The catch? None that we can think of first off, but it seems the metrics will take tracking numbers for orders canceled at the customer’s request as invalid (as they are generated, but not scanned). Also, any scanning error on the courier’s part will automatically affect the seller’s performance, regardless of whether the orders are delivered. Hopefully, these issues will be ironed out in time.
Melanie takes an active interest in all things Amazon. She keeps an eye on the latest developments, and keeps Amazon sellers up to speed