Ecommerce & Shopify · 100% free

Refund Rate Impact Calculator

What does your refund/return rate really cost you, after re-shipping, restocking and unsellable returns?

Shopify WooCommerce Any retailer
Total monthly cost of returns
$8,993
550 returns · $16.35 per return
Refunded revenue
$42,900
Money given back to customers
Ops cost (ship + restock)
$5,775
Lost inventory cost
$3,218
83 unsellable returns
Sellable returns (back in stock)
468
True net margin after returns
34.4%
vs 50.0% stated gross margin · $67,058 net profit/mo
Category benchmarks: apparel 20–30% return rate (highest), beauty 5–8%, electronics 8–15%, food/CPG 1–3%, supplements 1–4%. Of returned items: apparel ~5% unsellable, beauty ~50% unsellable (most can't be resold once opened), electronics ~10%.

About this tool

Apparel runs 20–30% returns. Beauty runs 5–8%. Electronics 8–15%. But the headline rate hides true cost, restocking labour, return shipping subsidies, items that arrive damaged. This tool layers all of those in and shows the real net margin after refunds.

Where returns secretly hurt

  • • Refunded revenue — money handed back to the customer
  • • Inbound shipping you cover (free returns subsidy)
  • • Restocking labour — pick, inspect, repackage, relist
  • • Unsellable returns — opened beauty, damaged apparel, used electronics
  • • Original outbound ad cost — you paid CAC for an order that didn't keep
  • • Storage drag on warehoused returns waiting to be processed

Top return-rate levers

  • • Sizing — accurate guide, model wearing multiple sizes, fit reviews
  • • Real product images vs studio-perfect renders
  • • Restrictive returns on final-sale items (with clear messaging)
  • • Charge for return shipping above a threshold to deter bracketing

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