Calculate return rate, total return cost, cost per return, and product quality risk for physical products. Use it to reduce avoidable returns and protect margin.
Return rate measures product and expectation mismatch. High return cost reduces profit even when gross sales look healthy.
Benchmarks vary by product category, channel, fulfillment model, and customer segment. Use the result as a decision estimate, not accounting advice.
If 45 of 1,000 orders are returned, return rate is 4.5%. At $38 cost per return, total return cost is $1,710.
A good return rate depends on category. Home goods may be below 8%, electronics 5–10%, and fashion can be much higher.
Common causes include inaccurate descriptions, sizing issues, damaged delivery, quality problems, and unmet expectations.
Improve product information, photos, sizing guidance, packaging, quality control, and post-purchase support.
Yes. Return shipping is a real cost and should be included when measuring product profitability.
Returns reduce profit through refund value, shipping, restocking, damaged inventory, support time, and lost resale value.
| Metric | Meaning |
|---|---|
| Main Result | Primary number used for decision-making. |
| Health Score | 0–100 score based on profitability, operating efficiency, or risk. |
| Status | Excellent, Good, Average, or Needs Improvement. |
| Recommendation | Automatic next action based on the result. |