Hey Empire... Saw in one of the more popular Facebook groups a question that I know that I had when I was first starting out with Amazon FBA. When you are new all of the feedback ratings that you get on Amazon make a big difference in sales.
If you get hit with negative feedback it is very likely that Amazon will penalize you in some way or might even remove your account altogether. Plus, customers don't like buying from someone that only has 3 stars or less (nobody does).
All that being said, below is part of a great article that I found that gives a ton of information about how you can keep your Amazon FBA reputation healthy so that you continue to become wealthy. Awww yeah....
Excerpt from Amazon Autopilot: How to Start an Online Business with Fulfillment by Amazon (FBA), and Let Them Do the Work by Peter Valley
Your standing with Amazon is based on these performance metrics:
If 100% of your inventory is FBA, the only thing you have to worry about is not getting bad feedback (otherwise defined as making your customers happy), not getting caught breaking rules, and responding to customers promptly.
When will Amazon kick you off? What ultimately defines whether Amazon kicks you off is your Order Defect Rate, defined by Amazon as ...the number of orders with a defect divided by the number of orders in the time period of interest. It is represented as a percentage.
For an FBA seller, an "order defect" is simply code for negative feedback. Watch your feedback. Amazon offers these cautionary words to anyone who lets their feedback fall below 96%:
You may not read it this way, but that's Amazon's version of a veiled threat.
Ultimately, buyers base their trust in you on the percentage number next to your seller name. That number is the percentage of positive feedback. This means both negative and neutral feedback counts against this figure.
The truth is that nearly every buyer will read 97% positive feedback as 3% negative feedback. They don't see that 3% for what it is: 3% negative and neutral. And some happy customers will still leave neutral feedback.
Here is the good news about neutral feedback: It does not count towards your order defect rate only negative feedback does. That defect rate metric is the one that ultimately determines whether or not Amazon allows you to have selling privileges.