Merchant Operating Standards
Our new Merchant Operating Standards are a set of guidelines that serve as an indicator of customer satisfaction. Merchants will be assigned a Merchant Tier based on these metrics as a way to gauge how they are performing.
We will look at three key metrics to define our operational standards:
- Item confirmation rate (ICR)
What it measures: Did the customer receive what they ordered?
How it’s calculated: The percentage of items that were confirmed, out of all items totaled across all orders. Replaced items are not considered confirmed.
- Store rating
What it measures: Did the customer rate their experience well?
How it’s calculated: Average star-rating of reviews left by customers (does not include deleted reviews)
- Refund rate
What it measures: Did the customer encounter issues that required a refund?
How it’s calculated: Percent of fulfilled sales that are later refunded to customers (missing items, bad replacements, etc.). Refund Rate = Refund Amount ($) / Order Revenue ($)
Note: All calculations are determined using fulfilled orders and exclude orders that were cancelled for a reason not due to merchant fault (e.g. Fraud, Customer Request).
We want to elevate our most reliable merchants by providing them with even more visibility to customers on Mercato. As a Tier 1 merchant, your store will get priority visibility over lower-tier merchants, special access to Mercato marketing resources and be featured on the store results page.
How it works
Merchant Tiers are calculated once per quarter and are a tool for us to recognize our most reliable merchants. Merchant Tier will inform how we rank and display stores on our site. A store must meet all criteria in a given Tier to qualify. In addition to the three criteria described above, a store must also meet a quarterly revenue minimum to qualify for Tiers 1 and 2.
Note: New stores will automatically be assigned to Tier 2