Return Rate
The percentage of orders that come back as returns - a key signal of sizing, quality or listing-accuracy problems.
In practice
Return rate varies enormously by category - apparel typically runs much higher than, say, consumables, since sizing and fit are subjective - so it's most useful compared against a category benchmark rather than judged as one universal number.
An apparel brand notices one specific style has a 40% return rate, far above its usual 15% average, and traces it to a sizing chart that ran small.
Why it matters
Return rate directly affects true profitability, since every return carries reverse shipping cost, inspection labor, and often a markdown - a hidden cost easy to overlook looking only at gross sales.
Worth knowing
- Varies enormously by category - apparel and footwear run far higher than consumables or electronics.
- A product running well above category average often points to a sizing chart or description problem.
- Should be tracked per SKU, rather than as a blended store-wide average only, to catch outliers early.
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Let's talk it through
Tell us where things stand with putting return rate into practice and we'll respond with next steps, no forms, no waiting in a queue.
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