What is the Merchant's Reversal Rate?

A merchant's reversal rate is not something that should be overlooked. Reversals can
happen for a number of reasons:
• Products or services were returned by the customer
• The order was cancelled by the customer
• The order was fraudulent
• The order could not be fulfilled by the merchant (out of stock)

Unfortunately, reversal rates are not published by the merchants. I recommend that you
either call or e-mail the Affiliate Program Manager to get this information. If you know
another affiliate that is currently promoting a particular merchant, you may want to ask
them too. Your reversal rate may be higher or lower depending on a number of factors,
but it's nice to get a general idea before you proceed to work with a merchant.

Real Life Example:
Reversal rates vary by industry and merchant. One of the highest return rates I have ever
witnessed is in the online shoes category. Return rates average between 20-40%. This
return rate must be factored into your profitability calculations or you will be sorely
disappointed when the reversals come through. This doesn't mean that you can't make a
profit from shoes; I know several affiliates that do, despite the high reversal rate.