Returns Rate Calculator
Calculate your ecommerce return rate, cost per return, and annual projected loss.
Order & Return Data
Total orders shipped in the period
Number of items returned
Default: $8
Default: $5
How to Reduce Your Return Rate
High return rates are one of the biggest margin killers in ecommerce. The average return rate across all ecommerce is 20–30%, but it varies heavily by category — apparel sees 30–40%, electronics 10–15%.
- Improve product descriptions and photos — most returns happen because the product didn't match expectations. Use multiple angles, size guides, and video.
- Add size guides and fit recommendations — especially critical for apparel and footwear.
- Use customer reviews and Q&A — social proof helps buyers self-qualify before purchasing.
- Tighten your packaging — damage-related returns are avoidable with proper void fill and sturdy boxes.
- Offer exchanges over refunds — if a customer wants a different size, an easy exchange keeps the revenue.
- Track return reasons — your return reason data is a product improvement roadmap.
The cost per return formula used here is: Processing Cost + Restocking Cost. On top of that, a percentage of returned items cannot be resold at full price — this calculator estimates 30% as unsellable, adding to your true loss.