Revenue and orders · P&L line 11
Return rate
The share of what you sold that came back.
Formula
Refunded value ÷ gross revenue
Return rate is usually quoted as refunded value over gross revenue, or refunded units over units sold. Both are useful; the unit version is the one to read per product.
The headline rate understates the damage, because a return gives back the revenue and the goods but not the outbound shipping, the pick and pack, or the payment fee.
Watch it per product rather than in total. One badly sized item can carry a whole category.
Related terms