Return Rate

The return rate measures the proportion of orders returned by customers. The e-commerce average is 20-30% in fashion and 5-10% in other sectors.

Calculation: Return Rate = Number of Returns / Number of Orders x 100.

Returns directly impact profitability: refund costs, return shipping fees, reconditioning, and potential stock loss. A 25% return rate can reduce your net margin by 5 to 10 points.

To reduce returns: improve product descriptions, add precise size guides, use quality photos and videos, and collect return reasons to identify recurring issues.

Fullmetrix tracks refunds by product, by category, and by period to identify problematic products.