Merchant Refund Rate (MRR)
The Merchant Refund Rate (MRR) is calculated on Fyndiq account level. MRR is defined as the percentage of total merchant orders that were refunded during a period of time. Currently the frequency of calculation is monthly and will be further adapted as Fyndiq develops the marketplace platform.
On a monthly basis Fyndiq will review two metrics.
- Refund ratio for the time 0 – 30 days from date of calculation
- Refund ratio for the time 63 – 93 days from date of calculation
Example calculation for 31st of May 2018
- 0-30 day metric: Including 31st of May back until and including 2nd of May.
- 63-93 day metric: Including 30th of March back until and including 1st of March
Refunds are registered with Fyndiq for following reasons and will be included in the MRR.
- Complaint – Broken Product
- Complaint – Incorrect Description
- Complaint – Missing Pieces
- Complaint – Product Quality
- Complaint – Wrong Product
- Customer requests refund (Regret)
- Missing – Incorrect Delivery Times
- Missing Product – Item was delivered late or not at all
Following reasons for refunds are not included in the MRR
- Fraudulent orders/ Suspected fraud
- Double order by customer
- Customer placed order by mistake
Monitoring Refund Rates
Fyndiq currently does not provide any refund data in the API or Fyndiq Merchant Center (soon to be published). Thus the information will be provided manually in an Excel sheet on a monthly basis and currently is only of informational nature. It is in the best interest of both the merchant and Fyndiq to improve refund rates and thus information is shared with the goal of reduced refund rates in the future.