Return rates by order
Total orders: Total number of customer orders.
Returned orders: Number of unique orders with at least one return (only counted once per order).
Return rate: Percentage of returned orders from total orders.
Return rates by order = Returned orders / total orders
Note: Returned orders only includes orders with completed returns. An order can have multiple returns, but we only count 1 return per order.]
Return rates by item
Total items: Total quantity of items that have been purchased.
Returned items: Total quantity of items that have been returned and processed. This doesn't include rejected returns.
Return rate: Percentage of items that are returned from total items ordered.
Return rate by item = returned items / total items purchased
Return rates by revenue
Total revenue: Total revenue generated. We use quantity multiplied by price to calculate total revenue. This calculation doesn’t include discounts or store credit used on orders.
Returned revenue: Total value of accepted returned items that have been submitted & processed, including refunds, store credit, and exchanges.
Return rate: The value of returns as a percentage of total revenue.
Return rate by revenue = Returned revenue / total revenue
How this can enhance your business:
Return rates can provide early indicators of issues with products, sizing, customer expectations, or even fulfillment accuracy. Monitoring return rates by order, item, and revenue allows you to spot problem areas quickly and take corrective action—such as updating product descriptions, improving fit guides, or addressing supplier quality. Lower return rates = higher profit margins and better customer satisfaction.