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Acceptable Reversal Rates

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Join Date: July 25th, 2011
Location: Reversalville
Posts: 57
Acceptable Reversal Rates

Obviously reversals are a part of the industry and come with the territory...

However, I am interested in what you think is the "acceptable" reversal rate from your merchants.

Do you go by the percentage of the amount of sales?
EX: 3 reversed sales out of 10 sales is ok (30%).

What formula do you use to decide that you cannot work with a merchant any longer due to too many reversals and drop them, replace links, etc...
Join Date: January 22nd, 2007
Location: West Covina, CA
Posts: 7,116
Send a message via Yahoo to Phil Kaufman aka AffiliateHound
Depends on the niche. I do not sell shoes but I understand that in that niche reversals are always in the 30-40% range. In my primary areas of home and garden products, the normal rate is under 10% (most merchants less than 5%) and I would question keeping any merchant that exceeds that for more than a brief period.

More important is why are sales being reversed. No reason or meaningless terminology is bad, bad credit card is acceptable, a specific problem with a specific product is ok, but repeated reversals because products are out of stock or otherwise unavailable are totally unacceptable.

I very rarely have had reversals due to tracking issues, such as "wrong referral" or similar, but if I saw that happening, I would inquire and if no satisfactory response was received, I would likely drop the merchant.
phil@abestweb.com | Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
"If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
"Raj, there’s no place for truth on the internet." -Howard Wolowitz
Join Date: August 24th, 2005
Location: VY Canis Majoris
Posts: 1,750
I do not consider reversals important, what matters is EPC. I have merchants on my promotion list with upto 70% of reversals, but still their EPC (for me) is better than their competitors who have negligible reversals.
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