How It Works
Three simple steps to get accurate calculations
1
Enter Sales Data
Input orders, AOV, and current margin.
2
Set Return Rate
Enter your current return percentage.
3
Add Return Costs
Include restock loss, shipping, support.
4
See Impact
Get margin hit and max sustainable rate.
Loading Return Rate Profit Impact Calculator...
Frequently Asked Questions
What is a normal return rate?
Varies by category: Apparel 20-30%, electronics 10-15%, home goods 10-12%, beauty 5-8%. Overall e-commerce average is 15-20%. Amazon is 5-10% due to strict policies.
How do returns really cost money?
Returns cost: Refund amount, lost profit from sale, restock/inspection labor, return shipping (if free), product depreciation (opened/used), support time, restocking fees you absorb.
How do I reduce return rate?
Key strategies: Better photos/videos, accurate sizing guides, detailed descriptions, customer reviews, quality control, realistic expectations, proper packaging, better customer targeting.
What is restock loss?
Restock loss is value lost when item returns: Opened packaging (10-20% loss), used/worn items (50-100% loss), damaged items (100% loss). Average across categories: 25-40% loss.
Should I offer free returns?
Free returns increase conversions 5-20% but increase return rate 10-30%. Do the math: If conversion lift profit > return cost increase, offer free returns. Often worth it for apparel, risky for low-margin items.
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Results are estimates for informational purposes only. Consult professionals for important decisions.