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September 20th, 2007, 02:19 AM #1How does a merchant get a 125% reversal rate?I was browsing through the PowerRank 100 list and noticed a merchant that has a reversal rate of 125%. How is this possible and why would they be ranked in the PowerRank 100 list??
I realize that there's a disclaimer at the top of the page that reads in part "PowerRank list is an attempt by the system to rank", but simple if this/then logic could easily exclude a merchant with over-the-top reversal rates to make room for other merchants.
September 20th, 2007, 03:03 AM #2
Pleeeeeaseeeeee tell us who it is so I can sign up!!!!
(No, I can't spend 90 seconds scrolling through the PowerRank 100 to find it myself.)
Sorry, Midnight and I've had my second Scotch. (after a realllly bad day)
September 20th, 2007, 07:41 AM #3
September 20th, 2007, 08:27 AM #4
- Join Date
- January 18th, 2005
- Los Angeles
Alan, it's just a stab in the dark, but some merchants have a hold on sales so they don't lock for 60 days, or whatever length of time. Those sales probably don't show up for EPC or sales/commissions for the current period (it doesn't appear that they do), so there could be a skewed percentage based on when pending vs. locked sales and returns happen to hit the books.
Doing a mind-scan back to an accounting/bookkeeping background in a former life, I'd guess that it's an accounting issue: cash accounting vs accrual accounting.
I had two sales totaling $1,666 in July, for a merchant who keeps sales pending for 60 days. The commission didn't reflect in my $ amount until this month, when those sales locked. Now they do, and did the day they locked; so the EPC must be based on a cash-basis accounting system with the figures being based on locked sales and commissions.
Since the commissions put to my account this month were accrued from two months prior, as would other July sales have been for that merchant, those wouldn't have been figured in the same way as cash (as opposed to accrual) sales would be. They more than likely didn't reflect in the EPC in July, and my guess is that there might be some kind of irregularity with how the current EPC is calculated when dealing with accrued sales, particularly with the 7 vs 30 day time frame.
If that's the case (or something somewhere in that ballpark), then one big return could wash out a few big sales if they're being debited/credited to that account in different ways with a different time-frame.
I missed this:
Don't forget that report shows 7 Day Reversal rate. If they had 4 sales, but reversed 5 including 1 or more from a previous week, that math will look interesting.
Last edited by webworker; September 20th, 2007 at 08:56 AM.
September 20th, 2007, 09:15 AM #5
- Join Date
- January 18th, 2005
A couple months ago I did about 5 or so test sales to make sure everything was working fine... That was before I realized that I should use SASs' affiliate ID so the reversals of my test transactions didn't register... Oops!
So a merchant not knowingly can skyrocket their reversal rate when testing.
September 20th, 2007, 10:39 AM #6
All good points everyone. As for placing test sales without clearing my cookies, I've been there/done that myself, so I know how reversals can sometimes look on the surface for a 7 day period. The example I looked at had high reversal rates for the past 7 and 30 days, so it just struck me as odd that they were listed in the PowerRank list.
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