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November 13th, 2011, 10:39 AM #1
Acceptable Reversal Rates
- Join Date
- July 25th, 2011
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...
November 13th, 2011, 11:38 AM #2
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.
November 13th, 2011, 12:58 PM #3
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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