E-commerce Return Rate Calculator
Calculate order return rate percentages, item-level return rates, net retained orders, and total financial loss from customer returns and restocking.
Return Rate Formula
Order Return Rate % = (Orders Returned / Orders Shipped) × 100; Retained Orders = Shipped - Returned; Financial Loss = Returned × Cost Per Return- Orders Shipped: Total customer order packages dispatched during the period.
- Orders Returned: Number of packages returned by buyers for refund or exchange.
- Item Return Rate: (Items Returned / Items Shipped) × 100 for multi-item apparel baskets.
- Financial Loss: Postage, unrefunded payment fees, and damaged stock write-offs.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Orders counted within the same cohort period.
- Excludes canceled orders refunded prior to carrier shipment.
Frequently Asked Questions
What is an acceptable return rate in e-commerce?
For consumer electronics, home goods, and beauty, 5% to 10% is standard. For apparel and footwear, 20% to 35% is common due to sizing and fit variances.
How can online retailers lower their return rate?
Provide accurate sizing charts with model measurements, upload high-resolution video demonstrations, use customer review fit badges ("Runs True to Size"), and offer exchanges over refunds.
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