Product Return Rate Calculator

Business growth and performance do not solely depend on the sales of your product. Customer satisfaction and revenue are two important factors that determine the success of your product.

The frequency with which customers return their online purchases is referred to as the return rate in e-commerce. The return rate for online purchases is a crucial statistic because it has a big impact on sales and customer experience.

Customers return items online for a variety of reasons. It can be due to the delivery of a faulty product, i.e when the delivered item is harmed, either before or during transportation. An inaccurate description of the product can also trigger a return. For eg: when the design or color of the actual product differs from that of the posted description. Another instance is when a wrong product is delivered; i.e when the product that was provided does not match what the buyer purchased.

Other reasons such as when the consumer cannot use the provided product due to personal reasons or a defective product have been delivered. When a customer no longer needs a product because it arrived too late can also be a reason for return.

Why is it important to know the Product Return Rate?
  • Assesses client satisfaction.
  • Determines the factors that influence returns.
  • Assesses the accuracy of the order.
  • Helps adopt a corrective action.
  • Reduce online shopping returns.

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Answers to Frequently Asked Questions

What are the benefits of calculating the Product Return Rate?

1. No lost sales or dissatisfied clients

Customers are satisfied with their orders when return rates are minimal. They are not compelled to start a comeback. In severe circumstances, clients who get damaged or inaccurate orders may decide to shop with your competitors instead of you again. So, by lowering your return rate, you may improve customer satisfaction and keep more of your money.


2. There are no additional fees for returns

Ecommerce returns include not only having to forfeit the sale’s revenue but also having to pay additional expenses. These expenses include the price of shipping the item back, the price of performing quality inspections, the price of refurbishing, and the price of repackaging and refilling the item.

How can you figure out a product's rate of return?

It is fairly easy to apply this formula. Divide the total number of returned items by the total number of things sold, then multiply the result by 100 to determine the e-commerce return rate. Your e-commerce return rate is that.

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