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