What is NFR and why should sellers on e-commerce platforms care about it?

17 May, 2024 by
What is NFR and why should sellers on e-commerce platforms care about it?
Lameco JSC

What is NFR?

NFR (Non-fulfillment Rate) refers to the percentage of failed orders compared to the total number of orders placed within a certain period of time, and it is a crucial metric in e-commerce, especially on platforms such as Shopee, Lazada, Tiki, etc. The formula to calculate NFR is generally:

NFR = (Cancellation Rate + Return Rate due to Seller's Fault) / Total Orders in 7 Days

For example, if you had 20 orders last week, of which 2 were canceled by you due to cancellation and stockouts, 2 were automatically canceled by the system for exceeding the preparation time, and there was 1 return, then your NFR would be:

NFR = (2 + 2 + 1) / 20 = 25%

Why should sellers on e-commerce platforms care about NFR?

Impact on reputation and store ranking

A high NFR can negatively impact your store's reputation on the e-commerce platform. This can lead to lower search rankings and fewer customers.

Effect on revenue

A high NFR indicates that many orders are not completed, leading to a loss of potential revenue.

Penalties and restrictions from the platform

E-commerce platforms often have penalties for stores with high NFR, including limiting promotional activities or even account suspension.

Customer experience

A high NFR can result in a poor shopping experience for customers, reducing the likelihood of them returning for future purchases.

How Lameco can help sellers improve their NFR

Lameco is a professional operational partner for over 200 brands and individual sellers on e-commerce platforms in Vietnam and Southeast Asia. Here are some ways Lameco can help you improve your NFR:

Order fulfillment services

Lameco provides professional order fulfillment services to ensure that your orders are processed quickly and accurately, minimizing the rate of operationally caused cancellations.

Training and support

Lameco focuses on training sellers and helps them understand processes and standards needed to minimize operational errors.

Management tools and solutions

Lameco offers management tools and solutions that help sellers effectively track and control their NFR. This includes providing detailed reports and timely corrective measures when issues arise.

Let Lameco help you improve your NFR today!

If you are struggling with a high NFR and want to improve your sales performance on e-commerce platforms, contact Lameco today. We are committed to providing optimal solutions and quality services to help you succeed in online business. Contact us today to learn more and start your journey to improve your NFR now!

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