Take control of your Amazon account health rating and reserve. Learn how to monitor key metrics, avoid suspension, and ensure a stable cash flow.
Jens Vittrup
As an Amazon seller, you cannot afford to ignore your account health metrics. These are directly linked to your ability to continue selling on the platform. But what do these numbers actually mean, and how do they affect your business?
Imagine waking up to an email from Amazon stating your account has been suspended due to poor metrics. Your products are no longer visible. Your revenue stops instantly. And worse? You may not even have access to the money you have already earned because of 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’s why it is crucial to understand what account health rating means on Amazon, what account level reserve is, and how to keep your metrics healthy.
This guide covers 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. Think of it as a credit score for your Amazon account – and it directly influences your ability to sell.
Account Health is displayed in Seller Central via the Account Health Dashboard, where you can monitor the various metrics that affect your account. The dashboard gives you insights into where your account may have problems, and which areas require attention to avoid suspensions.
Amazon uses a points system ranging from 200 to 1000 to rank seller accounts. New sellers start with 200 points, and your score increases as you consistently comply with Amazon’s rules and deliver strong customer experiences. Points are negatively impacted by policy violations, poor customer service, and other issues.
Your account health status falls into one of these categories:
To keep your Amazon account healthy, review your Account Health Dashboard regularly and resolve any issues promptly. The longer you wait, the greater the risk of negative consequences.
Understanding what constitutes a good account health rating on Amazon is essential for all sellers. Essentially, you should aim 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, 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’s important to note that a score above 300 is usually considered ‘Healthy’, and the higher above this level, the more stable your account status.
For established sellers, the aim should be to achieve and maintain a score of 400+ points, securing your position firmly in the ‘Healthy’ category and giving you a buffer against temporary issues. Sellers with very high scores (700+) often benefit from fewer manual reviews of product listings and potentially faster payouts.
A good account health rating on Amazon depends not just on your overall score, but also on staying below 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 thresholds can still trigger warnings or suspensions.
It’s also worth noting that Amazon can change the weighting of different factors without warning, 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’s look at the most important factors that affect your account health rating and that you should monitor closely.
This is perhaps the most critical metric for your Amazon account. Order Defect Rate combines negative feedback, A-to-z Guarantee claims, and chargebacks into a single measure. What is the maximum Order Defect Rate (ODR) Amazon allows for your account to avoid suspension? Amazon requires your ODR to remain below 1%.
Breaching this threshold is a direct path to account suspension. If your rate approaches 1%, you should immediately identify the causes and implement corrective actions. This may include improving product quality, providing more accurate product descriptions, or adopting better 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 received 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 you may not be meeting your shipping obligations, which directly affects customer experience.
To improve this metric, ensure your inventory information is 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 at least 95% of your shipments to have valid tracking numbers that can be verified by their system. This helps both the customer track their parcel and Amazon verify you have dispatched the item.
Failure to comply with this metric can reduce your buy box eligibility and, in severe cases, impact your account health. Always use reliable couriers that provide valid tracking numbers and ensure these are uploaded to Amazon in a timely manner.
Your Cancellation Rate (pre-shipment) should be kept below 2.5%. Frequent cancellations signal to Amazon that you may have inventory management issues or are unable to fulfil your sales commitments.
To improve this metric, keep your stock up to date, use inventory management software if necessary, and be cautious when accepting orders for products you may not be able to supply. An effective Amazon marketing strategy should factor in stock limitations to avoid overselling.
Amazon also measures how well you respond to customer enquiries. Your goal should be to answer more than 90% of customer messages within 24 hours. Slow response times can indicate poor customer service and negatively affect your account health.
Implement a system to handle customer queries efficiently, whether manually or using automation. Consider 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. While the programme is not extensively detailed in Amazon’s official documentation, it represents a proactive approach to 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 quickly to any warnings or messages 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 especially important for sellers who rely on Amazon as their main sales channel.
Account Level Reserve is a mechanism Amazon uses to withhold a portion of a seller’s earnings as security. This reserve is designed to protect Amazon and their customers against potential losses if a seller cannot meet obligations such as refunds or returns.
As an Amazon seller, it’s important to understand that account level reserve is not a penalty but a risk management tool. However, it still means that some of your revenue will be unavailable for a period, which can impact your cash flow.
Amazon determines the reserve amount based on several factors, including:
The 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 can be reduced.
The Amazon seller account level reserve is a specific type of reserve that applies to individual seller accounts. It works slightly differently from standard payment reserves by considering the seller’s specific risk level and performance.
This reserve is divided into different levels or tiers that reflect varying risk levels:
This is the basic reserve level applied to most sellers. Amazon typically withholds a small percentage of your revenue for a short period, usually 7-14 days. For most established businesses, this level has little impact on cash flow.
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 held for a longer period, typically 14-30 days. This can significantly affect 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 typically under close scrutiny for potential account suspension.
As a seller, it’s crucial to know which reserve level applies to your account, as it directly affects when you can access 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 levels, focus on optimising your products for Amazon, improving customer service, and ensuring quick and effective handling of returns and refunds. Regularly monitoring your account health allows you to identify and resolve issues before they lead to stricter reserve requirements.
Now that you understand what the account health rating on Amazon is, and what makes a good score, let’s 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 Amazon’s maximum allowed Order Defect Rate (ODR) of 1%:
By keeping your ODR low, you minimise the main 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 major impact on your account health:
By streamlining your shipping process, you ensure your products arrive on time with correct tracking, improving both customer experience and your account health.
Fast and effective customer service has a direct positive impact on your account health:
Strong customer service reduces the risk of negative feedback and A-to-z claims, helping you keep your ODR low and your overall account health high.
Amazon’s policies are strict, and breaches can seriously impact your account health:
By keeping your account free of 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 taking a proactive approach to 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 support from an Amazon expert can be crucial:
Professional Amazon consultants have experience navigating complex account health situations and can often resolve problems faster and more efficiently than sellers acting alone. They understand the nuances of Amazon’s policies and know exactly 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 impact your account health.
Regular monitoring is key to maintaining a healthy Amazon account. Here’s an effective approach to keeping an eye on your account health:
Set a regular schedule for reviewing 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 insights 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:
Comprehensive 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 handle them:
If your ODR begins to rise, take these steps:
Bear in mind that it can take time for changes to impact 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 crucial for both your account health and the customer experience.
For policy violations:
Be proactive in dealing with policy violations, as repeated issues can result in 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 you consistently meet Amazon’s requirements, even as your business grows or staff changes.
Reduce risk by not relying solely on Amazon:
Diversification makes your business more resilient to potential Amazon account health issues or policy changes.
Amazon constantly updates its policies and requirements:
By staying updated 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 also present significant risks to your account health. Here’s how to prepare:
Preparation is key to handling 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 peak season.
Adapt your approach during peak seasons:
These season-specific strategies can help you maintain your account health, even during the busiest sales periods.
Your account health is not just a reactive concern – it should be an integrated part of your overall Amazon strategy:
Take account health into account 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 problems:
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’s the foundation of a sustainable and profitable Amazon business.
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