Investigating the Impact of NCX Rate on Sales

I had some NCX ratings on my listings recently. And every time there was a decline in sales.

These NCX ratings are related to customer returns. The reasons are as follows. "I accidentally ordered the wrong item", "Unwanted item", "Ordered wrong style/size/color", "Item Open". A NCX rating of "Very Poor" is created with "Performance or quality not adequate' as issue. And suddenly the sales goes to zero for several weeks. In many of these cases, its not seller's fault or a product issue.

I have contacted Amazon Seller Supoort and posted on forums with limited value. So I have done my own observation for 3 months. I've noticed a strong correlation between high NCX rates and a decline in sales, and there seems to be a lack of clarity from Amazon support on how their algorithms handle this metric.

My findings suggest:

NCX Triggers Sales Slumps: A single NCX rating, regardless of the reason, appears to negatively impact sales for at least a month. While this impact is undeniable, the calculation system seems flawed.

Flawed Percentage System: For sellers with limited sales volume, a single NCX translates to a higher % rate, unfairly penalizing them even if the issue wasn't their fault (e.g., Amazon fulfillment error or customer remorse). If you are selling hundreds of units, probably it won't affect. But if you sell 1 or 2 units the NCX rate will be 50-100%.

Growth Hurdle for New Sellers: With each NCX, the recovery period extends, making it difficult for new sellers to gain traction as the algorithm suppresses their visibility. So if you are new seller with few sales, constant NCX ratings (sometimes given by bad players) wll never let you grow.

Troubling PPC Behavior: Even with suppressed sales, Amazon PPC ads continue to run and deplete seller funds, adding to the frustration.

This indicates a need for improved transparency and fairer metrics from Amazon's end to ensure a level playing field for all sellers, especially those starting out.

Seller Support tried to help but the support people seem to have limited knowledge about these metrics and how they work internally. Hence Amazon must look into these suggestions and try to better the system so it will help new sellers.