Work out return rate cost instantly with clear inputs, formula shown and shareable results.
Returns cost more than the refund: inbound shipping, inspection, restocking and markdown on reopened items all add up. Treating that processing cost as a share of order value keeps the estimate simple and comparable.
Cost of returns
Cost = orders × return rate × order value × (1 + processing cost share)
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.
Apparel and footwear, where fit uncertainty routinely pushes returns above a quarter of orders.
Better size guidance, richer imagery and honest descriptions cut returns far more than restrictive policies.