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What is a normal Refund rate? (if you are a seller)

by chewie49
8 replies
Hello!

Let's say you have a great product and you want to offer a moneyback guarantee.

Is there any statistics about how much could you expect to get refunded? How many people will take advantage of your guarantee and ask for a refund after they got the product?

Looking forward to your response.

Cheers!
#normal #rate #refund #seller
  • Profile picture of the author Neil Morgan
    This is one of those situations where the variety of answers you get will have little bearing on your own situation.

    Refund rate can vary wildly for zillions of reasons:

    - niche
    - product quality
    - service quality
    - payment processor used
    - sales pitch versus product

    ...to name just a few.

    Cheers,

    Neil
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    • Profile picture of the author radhika
      What Neil told was right. It depends on niche and quality of the product.

      Downloadable products attract more refunders especially ebook like stuff.

      Physical and PC products can have less refund rates.

      But as long as you maintain the quality of your product, I guess you will be fine

      .
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      • Profile picture of the author Carlton Johnson
        As has already been mentioned, there are lots of factors that contribute to a refund rate, so there isn't really a normal.

        Some of the so called gurus teach that as long as your refund rate is below 10% for the average downloadable product like an ebook you should be happy.

        The truth is that there are many ways to keep your refund rate low. Such as offering great unadvertised bonuses after the sale, but not giving them all at once, instead spreading them out over a series of weeks, but you have to make it the sort of stuff that people in that niche will want. So you are way overdelivering on what they expected.

        Also being contactable can play a huge part. If you let it be known that if they don't think the product is working the way it should then they can contact you and you can help it gives them piecie of mind. If you product is a good one it is likely that they are just not implementing things in the right way. The truth is, in my experience that only a small percentage of people will contact you but people do take a mental note and because of this they are less likely to refund because they feel happier and more secure witht he purchase and that you really do care and that they haven't been ripped off by someone that just wants to take there money and run.

        Most people that by your stuff in the real World (am referring to non IM niches when I say the real World) are basically honest. However, I think that if you are selling IM products then you are probably more prone to the serial refunders that no they can buy your product from clickbank, get a refund and still keep the product.

        Anyway, thats my take on it.
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  • Profile picture of the author milan
    What people above said. If you want a rule of thumb: if your refund rate is greater than 10% you're doing something wrong.

    Just a rule of thumb.
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  • Profile picture of the author Lindsay Brynn
    It definitely depends on the niche and other factors mentioned above. I personally just try to make the best decision in finding products and then see how it goes. I found one clickbank product that I sell regularly that I have seriously only had ONE return on. It is great.
    Then there is another one I used to promote that I had like a 25-30 % personal return rate. It wasn't in a niche that should have high returns and the affiliate page claimed their return rate was something like 7%. Maybe I was super unlucky, but I ditched that product so it doesn't matter anymore.
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  • Profile picture of the author aggajwz
    5% to 10% is normal
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  • Profile picture of the author aggajwz
    I woudnt feel comfortable with a life long guarantee, knowing after 5 years 4000 people can ask for a refund at the same time!

    Highly unlikely, but i just dont like the idea.
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