Return Rate Calculator
Calculate your e-commerce return rate, cost of returns, net revenue after refunds, and annual projection. Understanding return rates is essential for accurate profit planning.
Return Rate Formula
Frequently Asked Questions
Average e-commerce return rates range from 15–30%. Fashion sees the highest rates (30–40%), while electronics averages 10–20%. Holiday purchases often see 30%+ return rates in January. Brick-and-mortar retail averages 8–10%.
The true cost includes the refunded sale amount PLUS: shipping the return, inspecting/restocking the item (typically $7–$15), potential resale value loss (30–50% for opened goods), and customer service time. Many returns cost more than the product's profit.
Improve product descriptions and photos to set accurate expectations, provide accurate sizing guides, use high-quality packaging, add video demonstrations, offer proactive customer support post-purchase, and review feedback from returns to identify product issues.
Longer return windows (60–90 days) actually reduce returns as customers feel less rushed. Requiring an exchange instead of refund, offering store credit bonuses, and streamlining the process reduces friction while protecting revenue.
Related Calculators
Ecommerce Profit Calculator
Calculate net profit, margin, and ROI for ecommerce products after all fees and costs.
Churn Rate Calculator
Calculate customer churn rate, retention rate, and revenue churn for your business.
Revenue Calculator
Calculate total revenue, average revenue per unit, and revenue growth rate.