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Glossary · E-commerce

What is Return Reason Analysis?

Return reason analysis is the classification and counting of returned orders by the reason behind them. Once size, color mismatch, damage, wrong item, late delivery and change of mind are counted separately, the return rate stops being a single percentage and becomes a list you can act on. Without the analysis, the return rate is just something to complain about.

Detail

Improvement without a reason breakdown is guesswork. Size-driven returns are fixed with a size chart, color-driven ones with photography shot under correct lighting, damage-driven ones with packaging, wrong-item ones with the warehouse picking process; each belongs to a different team. On marketplaces the reason the customer selects does not always reflect the real one, so the free-text comments should be read too. The analysis has to be done per product; a catalog average hides a handful of problem items.

Formula

Reason share = Returns for a given reason ÷ Total returns × 100

Example

If 130 of 300 monthly returns are size-driven, fixing the size chart targets more than a third of the return rate.
FAQ

Common questions on this topic.

How is Return Reason Analysis calculated?

Reason share = Returns for a given reason ÷ Total returns × 100

If 130 of 300 monthly returns are size-driven, fixing the size chart targets more than a third of the return rate.

Why does Return Reason Analysis matter?

Improvement without a reason breakdown is guesswork. Size-driven returns are fixed with a size chart, color-driven ones with photography shot under correct lighting, damage-driven ones with packaging, wrong-item ones with the warehouse picking process; each belongs to a different team. On marketplaces the reason the cu…

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