Work out refund impact on revenue instantly with clear inputs, formula shown and shareable results.
A refund removes the revenue and the margin, and only part of the stock cost is recovered if the item can be resold. That is why refund rate hits profit harder than it hits the revenue line.
Refund impact
Profit lost = refunded × margin + refunded × cost share × (1 - resale recovery)
Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.
Because the margin is lost entirely while some of the cost of goods is also unrecoverable.
Yes. Reporting gross revenue in a high-refund category systematically overstates the business.