What does each card on the Returns tab mean, from refunds to chargebacks?

The Returns tab shows what refunds and returns really cost you. Open Insights and click Returns. Every card covers the dates you pick at the top of the page. A refund always counts on the day it happened, not on the day of the order.

Four figures sit at the top. Returned value is all the money you refunded, with VAT, for products and shipping. Return rate is that as a share of Gross Revenue: €900,00 refunded of €8.900,00 is 10,1%. Gross Revenue is what customers paid, with VAT and shipping, before refunds. True return cost is what returns really cost you, explained below. Cost per return is that cost divided by the returns where the items came back. For all four, a fall shows green.

What returns really cost splits the true return cost into four parts. Margin given back is the profit a refund hands back: the refunded amount without VAT, minus what the items cost you. Return processing is what your return rules charge per returned parcel, like a label and handling. Stranded fulfillment is the outbound shipping, packing and packaging of orders refunded in full. That money is gone. Stranded payment fees are the fees on those orders, which payment providers keep.

An example. You refund a dress sold for €119,00 with 19% VAT. Without VAT that is €100,00, and the dress cost you €40,00, so Margin given back is €60,00. Your return rule charges €6,00 for the label and handling. The whole order was refunded, so its €5,00 of outbound shipping and €2,50 of payment fees are stranded. This return cost you €73,50.

These costs are already on your P&L. The card only gathers them in one place, so nothing counts twice. Under the ring sit Cost per return, the true cost as a share of Net Revenue, and Fully refunded orders. Fully refunded orders shows how many orders were refunded in full and their share of all orders, like 12 · 1,4%.

Returns over time shows refunds per day, week or month, on the day of the refund. The dashed line is the return rate. Faded bars with a dashed edge are newer than your usual return time. That is the middle value of how long returns took over the last 12 months. Their returns are probably not all in yet, and the hover says not return-complete.

When returns hit shows how long after the order refunds arrive. Its rows are 0 to 7 days, 8 to 14 days, 15 to 30 days, 31 to 60 days and Over 60 days. Each row shows its share of returns and the money refunded. Hover the small i beside its title to see the median, the middle value. It also says within how many days 90% are back. It counts only returns where items came back to you, which Shopify marks as returned.

Chargebacks is about disputes: a customer asks their bank to take a payment back. Nothing is sent back, so there is nothing to process. The card shows Disputes, Disputed value, Chargeback fees and Share of returned value. For now it shows zero, because nouz does not read Shopify's dispute records yet. A dispute that Shopify records as a refund counts as an ordinary refund in Returned value. The dispute fee is not on the statement yet.

Return economics by product lists the products with at least 10 units sold and one refund in the range. The ones that cost you the most margin come first. Click a product to see its variants, since fit problems often sit in one or two sizes. Units sold and Units refunded come first. Return rate here is units refunded divided by units sold, red above 15%. The Return rate at the top of the tab counts money instead. Returned value is what you refunded for it, with VAT. Margin lost is the profit the refunds handed back. CM1 after returns is its net revenue minus its product costs, with refunds already taken off. CM1 % is that as a share of its net revenue.

A returns make it unprofitable tag means the product would earn money without its refunds, but loses money with them. Columns adds four more. Refund per unit is the average refund for one returned unit. Margin lost per unit is the profit one returned unit cost you. CM1 before returns is what it would have earned with no refunds. Profit lost to returns is Margin lost divided by CM1 before returns.

Say 40 dresses sold and 8 were refunded at €119,00 each. Return rate is 20,0%. Returned value is €952,00 and Margin lost is €480,00, which is €60,00 per unit. If CM1 before returns was €2.400,00, CM1 after returns is €1.920,00 and Profit lost to returns is 20,0%. The note under the table names what belongs to no product, like refunded shipping. Return processing and stranded costs belong to whole orders, so the table leaves them out. For a product's profit after every cost, use the Products tab.