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  1. #1
    Member
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    July 25th, 2011
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    Reversalville
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    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...

  2. #2
    Phil Kaufman aka AffiliateHound's Avatar
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    January 22nd, 2007
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    West Covina, CA
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    7,520
    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

  3. #3
    Moderator Nabz's Avatar
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    August 24th, 2005
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    VY Canis Majoris
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    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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