Amazon added 3,700 new sellers every day in 2021, according to research firm Finbold. This growth has been accelerated by the pandemic and consumer’s continued shift towards e-commerce: 74% of US shoppers now start their product search on Amazon. Clearly, Amazon is an important channel for retailers not just in the US but all over the world, as Amazon currently operates 16 marketplaces covering key global markets.
Success on Amazon depends largely on customer reviews and feedback, which means having safe and quality products that meet shopper’s expectations. Some common quality issues include faulty products, products not working as expected, missing parts and damage to the product. When it comes to product quality and safety, Amazon sellers must comply with Amazon’s own policies and applicable regulatory standards for their destination market.
So, what are the requirements sellers must meet, and how can this be achieved? Let’s explore.
Amazon’s quality requirements
Amazon measures Order Defect Rate (ODR): the percentage of a seller’s orders on which customers reported a problem with the product. Amazon sellers must keep their ODR under 1%. If a seller cannot maintain an ODR of less than 1%, Amazon may remove listings, limit the ability to list and sell, remove or dispose of inventory, and withhold payments.
Amazon places additional restrictions on certain products. These items may either be prohibited from being sold on Amazon, or be subject to specific requirements around labeling, condition or quality.
Restricted products that are not prohibited require approval. Amazon asks sellers to provide documentation proving that the product is safe, authentic and meets any requirements set by Amazon or by law.
Global regulatory standards
Amazon’s policy is that the seller must ensure their products comply with all applicable laws and regulations. These regulations apply to things like product safety considerations, age-appropriateness, composition and construction, toxicity and flammability.
While Amazon does provide reference to many directives in their seller policies, they don’t cover all. It’s imperative that sellers know the requirements that apply to their product and the region in which they are selling their product.
However, evolving regulations and country-specific requirements can make it challenging for sellers to keep up with current requirements for product safety – that’s where a trusted product quality and compliance partner such as QIMA can help.
Tips to minimize the risk of quality and compliance issues
Know the law and have an expert review the product to ensure it complies. Understand the origin of the products and any constraints on selling them in the destination market.
Research all the manufacturers, resellers and suppliers in the supply chain to be sure that products have been produced responsibly, ethically and legally.
Retain all documents related to your product (such as lab testing results and audit reports) and records (purchase orders, invoices) that prove reputable suppliers were used.
Verify product safety and carry out any required tests through a certified laboratory. Stay informed of related product recalls.
Inspect products regularly to ensure they work as they should and are free from defects.
Find success on Amazon with QIMA solutions
QIMA is a reliable and knowledgeable quality control, testing and audit provider. Our experienced team can help establish a design and production plan, carry out inspections and laboratory testing, and ensure suppliers are reputable. We stay current on national and international testing and labeling standards, and can deliver rapid lab testing and inspection reports at all stages of your product’s lifecycle.
To find out how QIMA can help you thrive as an Amazon seller, contact us today.
For more information on Amazon seller requirements, download our Quick Guide here.