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Glossary · E-commerce

What is Return Rate?

Return rate is the percentage of shipped orders that come back. Typical bands are 20%–35% in fashion, 5%–10% in electronics and 1%–3% in food. A return hits contribution margin twice over: it takes away the revenue and adds outbound-return shipping plus repackaging cost.

Detail

The most effective ways to cut return rate: an accurate size chart, realistic product photography, detailed measurements and copy that sets expectations correctly. Exaggerated promises in advertising lift sales short term, raise returns and lose money over the long run. On marketplaces, a high return rate also drags down your seller score.

Formula

Return rate = Returned orders ÷ Total orders × 100

Example

1,000 orders with 240 returns → 24%. At an average cost of 70 TL per return, that is 16,800 TL a month in hidden cost.
FAQ

Common questions on this topic.

How is Return Rate calculated?

Return rate = Returned orders ÷ Total orders × 100

1,000 orders with 240 returns → 24%. At an average cost of 70 TL per return, that is 16,800 TL a month in hidden cost.

Why does Return Rate matter?

The most effective ways to cut return rate: an accurate size chart, realistic product photography, detailed measurements and copy that sets expectations correctly. Exaggerated promises in advertising lift sales short term, raise returns and lose money over the long run. On marketplaces, a high return rate also drags do…

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