I had NewEgg flag a transaction of mine as fraudulent in 2009, they just silently cancelled it then gave me strange errors on the order status page. When contacted they said the transaction was flagged and there was nothing they could do.
I didn't use NewEgg again until 2017 as a direct result. That one bounced transaction (and frankly how they handled it) cost them six years worth of business that Amazon got (talking easily $3K+).
I think you're the edge case. Most customers will be somewhere between put out and outright angry.
The problem I see is NewEgg handled it poorly, it doesn't sound right that there wasn't anything they could do. That's NewEgg's problem and nothing wrong with actually flagging a transaction that requires a manual investigation.
Not even angry or slighted. People will just assume that Merchant X doesn’t ship to their area and they never go back because they never receive any information to the contrary.
I’ve only been flagged once, and that was when I was a new B&H customer. A quick phone call fixed the problem and in spite of changing addresses at least ten times since then, haven’t had a problem since.
However, it is occasionally a problem that B&H won’t ship to hotels.
NewEgg’s operating margin is probably between 3 and 10%, so that bounced transaction cost them ~$250 in profit. Would they have lost more than that by fulfilling your order size in 2009 if it had been fraud?
On the other hand I've shopped with NewEgg since 2005. I've had orders flagged as fraud once in a while both from NewEgg and also (more often, actually) from the bank when they receive the charge from NewEgg. While quite annoying, it is one of the many reasons I continue to order from them.
I didn't use NewEgg again until 2017 as a direct result. That one bounced transaction (and frankly how they handled it) cost them six years worth of business that Amazon got (talking easily $3K+).
I think you're the edge case. Most customers will be somewhere between put out and outright angry.