Return Rate Analyzer

How to use this calculation

80 returned original units ÷ 1,000 fulfilled original units × 100 gives an 8% unit return rate, with 920 not returned at the cutoff. With 50,000 initial product revenue and 4,000 matched reversals, adjusted revenue is 46,000 and the monetary reversal rate is 8%. Adding 400 handling expenses gives 4,400 in the shown reversal-and-handling amount, not a calculated loss of net profit. The reference's example of 150 returned out of 1,000 sold gives 15%.

• Use the same SKU/channel scope, original sales cohort and observation cutoff. Recent cohorts may not yet have completed their return windows. Count each original returned unit once, not requests, return events, orders or customers. Returned original units cannot exceed the cohort's fulfilled units; a zero denominator makes the rate undefined.
• Physical returns, refunds, exchanges and product sales reversals are different measures. Refunds can occur without physical returns, and an exchange can retain revenue. Match monetary reversals to these original sales rather than combining older-order refunds with newer sales. Net product reversals cannot exceed the selected original product revenue; a zero product-revenue base leaves its monetary rate undefined while the unit rate still works.
• The shown reversals plus handling expenses are not net profit loss or cash flow. Recovered inventory value, resale, replacement sales, payment credits, timing and unentered expenses can alter the financial effect. Handling expenses can exist even without physical returns. This tool supplies arithmetic measures, not an industry benchmark, return authorization, refund instruction or guaranteed financial outcome.

Formula reference: Shopify: Ecommerce returns and unit-return-rate formula. General planning information, not a guarantee of business results.