Shopify Ops Glossary
DCR (Defective/Chargeback Rate)
A combined metric tracking product defects and chargeback rate.
Definition
DCR combines defect rate (percentage of orders with product quality complaints) and chargeback rate to give an overall signal of product-customer experience alignment. High DCR indicates product quality or expectation-setting issues.
Why It Matters for Shopify Brands
Monitoring DCR by SKU identifies specific products with disproportionate quality or expectation problems — enabling targeted product improvement or listing changes.
Benchmarks
Target defect claim rate: under 0.5%. Chargeback rate: under 0.3%.
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