The answer for each seller is slightly different. All sellers should use the following best practices:
Some refunds represent a quickly processed return, or an order cancelled at the customer's request. These are excellent customer experiences and we do not intend to punish sellers for providing this basic level of service.
However, in our marketplace the vast majority of refunds are due to inventory availability and accuracy problems. A low refund rate demonstrates a seller's ability to fulfil on inventory promises. The 5% refund rate threshold should more than accommodate buying customer requests for returned or cancelled orders.
Yes. We do anticipate making adjustments to the seller performance targets over time. We also expect to expand the number of performance metrics that we expose to sellers.
The standards benefit sellers in two ways. First, they set clear performance expectations. Sellers will understand the difference between an excellent seller and an underperforming seller. Underperforming sellers will have the opportunity to make operational adjustments.
Secondly, by establishing and maintaining a service that provides a great customer experience, we anticipate a greater number of repeat purchases in addition to positive word of mouth. Sellers will directly benefit from both.