Seller Score 101
Watch the video below to see how you can easily improve your seller score!
What is the Seller Score?
The Houzz Seller Score is a quantitative measure of the experience that a seller offers to buyers on the Houzz Marketplace. The goal of the score is to identify and reward sellers that offer the best experiences and educate Sellers about how to improve their service over time.
The Seller Score takes into account the following factors:
- On-time shipment rates
- Response times to customer messages and inquiries
- Seller reviews
- Frequency of inventory updates
- Seller-faulted cancellations (for example, due to out-of-stock products or an item being uncompetitively priced)
- Seller-faulted returns (for example, the wrong item was shipped)
- Seller-faulted chargebacks (due to poor seller behavior)
Your overall Seller Score is rated on a scale of 0 to 100, with the following ranges:
- 90-100: Exceptional
- 80-89: Good
- 70-79: Average
- 50-69: Underperforming
- under 50: Account Suspended
If a seller has no orders within the last 180 days, their score will appear as "--", but will automatically recalculate as their order volume grows.
How is the Seller Score Calculated?
The Seller Score is calculated by assigning an order score to each of a seller’s orders within the last 180 days and applying a time-weighted average across this set of order scores. An individual order score starts at 100 and receives penalties and bonuses based on the following events:
- Shipment times: a penalty is applied if an order is late, with the severity of the penalty directly proportional to the number of days an order is late. Response times to customer messages: a penalty is applied if a response to any customer inquiry about an order takes longer than 24 hours.
- Seller-faulted cancellations: a penalty is applied when an order is canceled due to a seller issue, with the "out-of-stock" and "failing to ship" reasons being the most severe.
- Seller-faulted returns: a penalty is applied if an order return is caused a seller issue (incorrect or damaged item, shipped the wrong item, uncompetitive pricing, amongst others).
- Seller-faulted chargebacks: a penalty is applied if an order has a chargeback that is caused by the seller.
- Seller reviews: a bonus is applied for 4- and 5-star reviews; a penalty is applied for 2- and 1-star reviews.
- Inventory management: a penalty is applied if the seller does not update their inventory on a regular basis. We recommend updating inventory (for stock levels) for each product every hour, but no less than once per day, depending on your order volume.
In addition to the overall Seller Score, Houzz calculates six composite metrics that can be used to assess your performance.
- Perfect order rate: the % of orders that are fulfilled on-time with no issues, returns, or negative feedback. An order is not considered perfect even if the return is the buyer's fault, however, buyer-faulted returns don't negatively impact the Seller Score.
- Order defect rate: the % of orders that contain either a backorder (i.e. a delayed shipment), seller-faulted return (e.g. a damaged item), chargeback, or negative feedback. Buyer-faulted returns are not counted here.
- Cancellation rate: the % of orders that are cancelled by the seller (e.g. an item is out-of-stock). Keeping stock information accurate is critical to providing a great buying experience.
- Late shipment rate: the % of orders that are shipped after the specified lead time. On-time shipment is the single biggest thing a seller can do to maintain a high score.
- Average rating: the average of all ratings supplied by a seller's customers.
- Late response rate: the % of messages to which a seller responds after 24 hours. It's important for sellers to be highly responsive to customer questions and inquiries.