At SellerActive, we specialize in helping Walmart Marketplace sellers succeed by offering multi-channel repricing and inventory management tools designed to capture Walmart's buy boxes and increase sales. We also provide sellers helpful resources on how to make online storefronts grow.
If you've already optimized your Walmart listings but you aren't seeing the needle move as much as you like, it might be time to evaluate your seller metrics.
Seller Center > Analytics & Reporting > Performance > Seller Scorecard
You'll notice three key performance metrics and where you’re positioned based on Walmart's seller criteria. Those are actually the Key Performance Indicators (KPIs) that tell your customers you're a high-quality and trusted seller.
Improve Your Walmart Marketplace KPIs
Ready to improve your Walmart e-commerce store by taking a deep dive into the Walmart metrics that matter? Read on to learn about each metric and how to make improvements.
1. 90-Day Order Defect Rate (ODR)
Let's start with the 90-Day Order Defect Rate (ODR) and why it's vital to your Scorecard. First, Walmart measures your ODR by calculating the number of purchases and divides them by the total defective orders within the same purchase period. To be in good standing with Walmart, your ODR needs to be 2% or less.
What Walmart considers a defective order is somewhat nuanced, so it's helpful to know their grading criteria if you're above or near that 2% mark. Here's how they score each order based on ODR:
- Cancellations: A customer cancels an item due to a pricing error, inventory issue, or false information they saw on a product listing.
- Returns: A customer makes a return because an item is damaged, defective, missing parts, or received the wrong product.
- Delivery Issues: A customer returns the item due to shipping delays or other supply chain issues.
How do you improve a Walmart Marketplace KPI like ODR or keep it safe? By preventing fulfillment, pricing, and inventory issues before they happen by using a multi-channel management platform for e-commerce businesses.
2. Valid Tracking Rate
Walmart scores your Valid Tracking Rate percentage based on how many of your orders include tracking information. Therefore, to be considered a suitable seller, you need to have a Valid Tracking Rate above 99%.
Including tracking numbers in every order is essential to your success as a seller because that data tells Walmart you've fulfilled an order, which triggers automated customer service actions. If you fail to include one, Walmart's automated system may believe you haven't shipped the product and refund your customers. This creates a domino effect that could impact your entire seller rating.
The easiest way to keep your Valid Tracking Rate above 99% is by adding tracking to every purchase and remembering to use an order management tool that keeps your inventory synced across all storefronts.
3. On-Time Shipment Rate
Walmart calculates your On-Time Shipment Rate as a percentage of total tracked shipments and their deliveries. As a KPI, make sure your On-Time Shipment Rate is above 99% to keep your customers happy and your seller score rock solid.
The easiest ways to prevent harm to your score is by fulfilling orders by the Expected Ship Date (ESD) provided by Walmart, adding tracking, and keeping your inventory updated.
Suppose you're having issues meeting an ESD or handling inventory. In that case, we recommend using a multi-channel management platform that specializes in order fulfillment and cross-channel inventory updates for e-commerce businesses.
Additional Walmart Metrics to Monitor
Now that you know how to improve your Scorecard, let's cover a few other metrics that inform seller performance. These include:
- Conversion Rate
- Average Order Value (AOV)
- Customer Lifetime Value (CLTV)
- Inventory Turnover Rate (ITR)
We invite you to learn more about these metrics and how to improve them. Read our article covering 5 E-Commerce KPIs Your Small Business Should Track to see how to track and improve each metric.
Let’s Improve Your Walmart Scorecard
Walmart Marketplace data doesn’t need to be complicated. At SellerActive, we provide an e-commerce management platform that automates inventory across multiple storefronts and allows you to put your best price forward. Want to capture more buy boxes? Enroll in a free 14-day trial of our service to get started.