Amazon has recently launched STEP Program, a performance-linked program, where sellers get benefits based on their previous performance on Amazon. Many people have criticized Amazon for extending certain benefits only to a few sellers on its platform in the last few months. It mainly includes those in which Amazon is a stakeholder, directly or indirectly.
Amazon has made the evaluation of sellers through the STEP Program effective from 01st January 2021 only to explain when the matter gets too heated. In our opinion, Amazon is correct as it provides certain extra benefits to sellers that abide by its rules and provide them with more business.
If we buy something in bulk in the market, we get some extra discounts. So, giving certain benefits to some sellers for good performance and a large volume of business is fair.
Now, let’s understand how the STEP Program works.
Under the STEP Program, Amazon has categorized the sellers into four categories – Basic, Standard, Advanced, and Premium. By default, Amazon categorizes all sellers as Standard level Sellers. Each seller’s performance is evaluated based on the following metrics –
1.Total Cancellation Rate
2.Total Late Dispatch Rate
3.Seller Controllable Return Rate
4.Out of Stock Rate
5.Prime Listings Customer Views
6.Regional In-Stock Rate (Only for Premium)
7.Net Sales Volume/Net Sales Units (Only for Premium)
Amazon evaluates the seller’s performance, for the last quarter, on the 1st of next quarter. For example, Amazon evaluates the metrics for January to March on 1st April and decides.....
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