Ecommerce Returns Loss Analyzer
Calculate net loss from returns including shipping, labor, and salvage. Enter values for instant results with step-by-step formulas.
Formula
Loss = (Refund - Recovery) + Shipping + Handling
The true cost of a return is not just the refunded money. It's the refunded money MINUS what you can resell the item for (Recovery), PLUS the cost to ship it back and pay someone to inspect/restock it (Handling).
Worked Examples
Example 1: Fashion Returns
Problem:$100 Dress, 30% Return Rate, Free Return Shipping
Solution:Lost Shipping ($10) + Handling ($5) + Markdowns. Loss ~$25 per return.
Result:$25 Loss/Return
Example 2: Electronics
Problem:$500 TV, 5% Return Rate, Open Box
Solution:Cannot sell as new. 20% value loss ($100) + Heavy Shipping ($50).
Result:$150 Loss/Return
Example 3: Final Sale
Problem:No returns allowed.
Solution:Loss = $0. But conversion rate may drop.
Result:$0 Loss
Frequently Asked Questions
Should I offer free returns?
Free returns increase conversion rates but also increase return rates. It's a tradeoff. Test charging a small fee vs free to see net profit impact.
How do I reduce returns?
Better sizing guides, high-quality photos, customer reviews, and accurate descriptions. 'Item not as described' is a top reason.