Take control of your Amazon account health rating and reserve. Learn to monitor key metrics, avoid suspension, and ensure stable cash flow.
Jens Vittrup
As an Amazon seller, you cannot ignore your account health metrics. They are directly linked to your ability to continue selling on the platform. But what do these figures really mean, and how do they affect your business?
Imagine waking up to an email from Amazon stating that your account has been suspended due to poor metrics. Your products are no longer visible. Your income stops immediately. And the worst part? You may not even have access to the money you have already earned, due to Amazon’s reserve policies.
Amazon is not afraid to suspend sellers. They prioritise customer experience above all else – even over your business’s survival. That is why it is crucial to understand what account health rating is on Amazon, what account level reserve means, and how to keep your metrics healthy.
In this guide, we cover everything you need to know about Amazon account health and reserve metrics, so you can protect your business and continue to sell on Amazon without interruptions.
Account Health Rating (AHR) is Amazon’s way of assessing how well your seller account complies with their policies and performance standards. It is similar to a credit score for your Amazon account – and it directly impacts your ability to sell.
Account Health is displayed in Seller Central via the Account Health Dashboard, where you can monitor various metrics that affect your account. The dashboard gives you insight into where your account may have issues and which areas require attention to avoid suspensions.
Amazon uses a points system from 200 to 1000 to rank sellers’ accounts. New sellers start at 200 points, and your score increases as you consistently comply with Amazon’s rules and provide good customer experiences. Points are negatively impacted by policy violations, poor customer service, and other problems.
Your account health status falls into one of these categories:
To keep your Amazon account healthy, you should regularly review your Account Health Dashboard and resolve any issues promptly. The longer you wait to address a problem, the greater the risk of negative consequences.
The question of what constitutes a good account health rating on Amazon is crucial for all sellers. Essentially, you want to achieve and maintain a ‘Healthy’ status, which typically corresponds to a score between 200 and 1000 points – the higher, the better.
As a new seller, you start with 200 points, which is the minimum required to sell on the platform. As you consistently comply with Amazon’s policies and deliver good customer experiences, your score will increase. It is important to note that a score above 300 is typically considered ‘Healthy’, and the higher above this level, the more stable your account status.
For established sellers, the goal should be to reach and maintain a score of 400+ points, which places you solidly in the ‘Healthy’ category and provides a buffer against temporary issues. Sellers with very high scores (700+) often benefit from fewer manual reviews of product listings and potentially faster payouts.
However, a good account health rating on Amazon is not just about the total score, but also about not exceeding the critical thresholds for key metrics such as Order Defect Rate, Late Shipment Rate, and Valid Tracking Rate. Even with a generally high score, breaching these key thresholds can still trigger warnings or suspensions.
It is also worth noting that Amazon can change the weighting of different factors without notice, so a proactive approach to account maintenance is always advisable to maintain a good account health rating.
Amazon assesses your account based on several key metrics, but some have a greater impact than others. Let us take a closer look at the most important factors that affect your account health rating and which you should monitor closely.
This is perhaps the most critical metric for your Amazon account. The Order Defect Rate combines negative feedback, A-to-z Guarantee claims, and chargebacks into one metric. What is the maximum Order Defect Rate (ODR) that Amazon allows for your account to avoid suspension? Amazon requires your ODR to remain below 1%.
Exceeding this threshold is a direct route to account suspension. If your rate approaches 1%, you should immediately investigate the causes and implement corrective actions. This may include improving product quality, providing more accurate product descriptions, or enhancing customer service practices.
To calculate your ODR, Amazon divides the number of defective orders by the total number of orders in a given period. A defective order is defined as one that has resulted in negative feedback (1-2 stars), an A-to-z Guarantee claim, or a chargeback.
Amazon expects sellers to dispatch orders within the promised timeframe. Your Late Shipment Rate should be kept below 4% to avoid issues. A high LSR indicates that you are unable to meet your shipping commitments, which directly affects the customer experience.
To improve this metric, ensure your stock levels are accurate, you have sufficient staffing to handle orders, and you use realistic shipping times in your settings. Consider using Amazon FBA to eliminate this concern entirely.
Amazon requires that at least 95% of your shipments have valid tracking numbers that can be verified by their system. This helps both the customer to track their parcel and Amazon to confirm that you have actually dispatched the item.
Failure to comply with this metric can lead to reduced buy box eligibility and, in severe cases, affect your account health. Always use reliable carriers that provide valid tracking numbers, and ensure you upload these to Amazon in a timely manner.
Your Cancellation Rate (before dispatch) should be kept below 2.5%. Frequent cancellations signal to Amazon that you may have inventory management issues or that you are unable to meet your sales commitments.
To improve this metric, keep your stock updated, use inventory management software if necessary, and be cautious about accepting orders for products you may not be able to fulfil. An effective Amazon marketing strategy should take stock limitations into account to avoid overselling.
Amazon also measures how well you respond to customer enquiries. Your goal should be to reply to more than 90% of customer messages within 24 hours. Slow response times can indicate poor customer service and negatively impact your account health.
Implement a system for handling customer enquiries efficiently, whether manually or with automation. Consider using templates for common enquiries to save time, but ensure responses are personalised enough to show you value each customer.
Amazon Account Health Assurance is a programme designed to help sellers maintain a healthy account and avoid suspensions. Although the programme is not detailed in Amazon’s official documentation, it represents an approach to proactive account management.
In practice, account health assurance means actively monitoring and managing your account to ensure it remains in good standing. This includes regularly reviewing your Account Health Dashboard, responding promptly to all warnings or notifications from Amazon, and implementing processes that ensure compliance with Amazon’s policies.
An effective account health assurance strategy includes:
By implementing a robust account health assurance strategy, you can minimise the risk of account interruptions and ensure your Amazon business remains active and profitable. This is particularly important for sellers who rely on Amazon as their primary sales channel.
Account Level Reserve is a mechanism that Amazon uses to withhold a portion of a seller’s revenue as security. This reserve is designed to protect Amazon and their customers against potential losses if a seller fails to meet their obligations, such as refunds or returns.
As a seller on Amazon, it is important to understand that account level reserve is not a penalty, but rather a risk management tool. However, it still means that a portion of your revenue will be inaccessible for a period, which can impact your cash flow.
Amazon determines the reserve amount based on several factors, including:
Account level reserve on Amazon seller accounts can range from 3% up to 100% of sales revenue in extreme cases. The typical reserve period can last from 7 days up to several months, depending on the risk factors associated with your account.
To minimise the impact of account level reserve, focus on improving your metrics, building a solid sales history, and keeping your account in good standing. Over time, as Amazon considers your account less risky, the reserve amount and period may be reduced.
Amazon seller account level reserve is a specific type of reserve that applies to individual seller accounts. It works a little differently from standard payment reserves, as it takes into account the seller’s specific risk level and performance.
This reserve is divided into different levels or tiers, reflecting varying levels of risk:
This is the basic reserve level that applies to most sellers. Typically, Amazon withholds a small percentage of your revenue for a short period, usually 7-14 days. This level does not significantly affect cash flow for most established businesses.
If your account shows signs of increased risk, such as rising returns, negative reviews, or policy violations, Amazon may place you in Tier 2. Here, a higher percentage of your revenue is withheld for a longer period, typically 14-30 days. This can have a significant impact on your liquidity.
This is the most restrictive level, reserved for accounts with serious issues. Amazon can withhold up to 100% of revenue for an extended period, often 30+ days. Sellers in this category are also typically under increased scrutiny for potential account suspension.
As a seller, it is essential to understand which reserve level your account is subject to, as it directly affects when you gain access to your revenue. You can find this information in Seller Central under the ‘Payments’ section, specifically in the ‘Account Level Reserve’ tab.
To avoid being placed in higher reserve tiers, focus on optimising your products for Amazon, improving customer service, and ensuring quick and effective handling of returns and refunds. Regular monitoring of your account health allows you to identify and resolve issues before they lead to stricter reserve requirements.
Now that you understand what account health rating on Amazon is, and what makes a good score, let us look at concrete actions you can take to improve and maintain a healthy account:
ODR is the most critical metric when it comes to account health. To keep it below the maximum Order Defect Rate (ODR) of 1%, as required by Amazon:
By keeping your ODR low, you minimise the greatest risk of account suspension and improve your overall account health rating.
Shipping-related metrics such as Late Shipment Rate and Valid Tracking Rate have a significant influence on your account health:
By streamlining your shipping process, you ensure your goods arrive on time and with correct tracking, which improves both customer experience and your account health.
Fast and effective customer service directly impacts your account health:
Good customer service reduces the risk of negative feedback and A-to-z claims, which helps keep your ODR low and improves your overall account health.
Amazon has strict policies, and violations can have a serious impact on your account health:
By keeping your account free from policy violations, you avoid the most severe account health issues and potential suspensions.
To minimise the impact of account level reserve on your business:
By being proactive regarding account level reserve, you can better manage your cash flow and improve your business’s financial stability.
While many account health issues can be managed internally, there are situations where professional assistance from an Amazon expert can be crucial:
Professional Amazon consultants have experience navigating complex account health situations and can often resolve issues more quickly and effectively than sellers trying to handle it alone. They understand the nuances of Amazon’s policies and know precisely how to draft appeals and plan of action documents to maximise the chances of a positive outcome.
If you decide to work with Amazon advertising or significantly expand your business, a proactive consultation with an Amazon specialist can help you avoid common pitfalls that could affect your account health.
Regular monitoring is key to maintaining a healthy Amazon account. Here is an effective approach for keeping an eye on your account health:
Set up a fixed schedule to review your account health:
Consistent monitoring allows you to spot problems before they become critical and take corrective action before they negatively affect your account health rating.
Amazon offers several tools to help sellers monitor their account health:
These tools provide valuable insight into your account’s performance and can help you identify specific areas needing improvement.
Thorough documentation is essential, especially if you ever need to appeal an Amazon decision:
Good documentation can save you significant time and stress if you ever need to defend your account against suspension or explain historical issues to Amazon.
Even the most diligent sellers can encounter account health issues. Here are some of the most common challenges and how to manage them:
If your ODR starts to rise, take these steps:
Remember, it can take time for changes to affect your ODR, as Amazon calculates this rate over a period of 60 days or 100 orders (whichever comes first).
For issues with Late Shipment Rate or Valid Tracking Rate:
Consistent shipping metrics are essential for both your account health and customer experience.
For policy violations:
Be proactive when handling policy violations, as recurring problems can lead to permanent account suspension.
If your account level reserve is affecting your cash flow:
Over time, with improved performance, Amazon will typically reduce your account level reserve to a more manageable level.
To ensure long-term success as an Amazon seller, you should integrate these account health best practices into your daily operations:
Focus on delivering quality products and service rather than prioritising volume:
A focus on quality reduces returns, negative reviews, and account health issues in the long run.
Systematise your Amazon business to ensure consistent compliance:
Strong systems ensure that you consistently meet Amazon’s requirements even as your business grows or staff changes.
Reduce the risk of being entirely dependent on Amazon:
Diversifying makes your business more resilient to potential Amazon account health issues or policy changes.
Amazon is constantly changing their policies and requirements:
By keeping up to date with Amazon’s changes, you can proactively adapt your business and avoid account health issues.
Peak seasons such as Black Friday, Cyber Monday, and Christmas can be golden opportunities for Amazon sellers, but they can also pose significant risks to your account health. Here is how to prepare:
Preparation is key to managing seasonal fluctuations:
Thorough planning helps you avoid many of the account health issues that often arise during busy periods.
Peak seasons bring specific challenges:
By understanding these risks, you can implement specific strategies to mitigate them during the high season.
Adapt your approach during peak seasons:
These season-specific strategies can help you maintain your account health, even during the most demanding sales periods.
Your account health is not just a reactive concern – it should be an integral part of your overall Amazon strategy:
Consider account health when making strategic decisions:
By making account health a strategic priority, you protect your Amazon business’s long-term viability.
Rapid growth can often lead to account health issues:
A balanced approach to growth ensures your account health does not suffer during rapid expansion.
By implementing these strategies and practical tips, you can build a healthy Amazon account that is resilient to challenges and positioned for long-term success. Remember, a good account health rating on Amazon is not just about avoiding suspension – it is the foundation for a sustainable and profitable Amazon business.
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