Return Rate

eCommerce

Logistics

What is Return Rate?

The return rate measures the rate at which shipped items are returned.

Return Rate Formula

Return rate = total items returned / total items shipped

Return Rate Unit

Return Rate is expressed as a percentage (%).

Calculation example

For example, if your store sold 1,000 items last month and 50 of those were returned, your return rate would be:

Return Rate = (50 / 1.000) x 100 = 5 %

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Jira

Jira

Salesforce

More about Return Rate

Understanding the return rate is essential for any business that deals with physical products, especially in the e-commerce industry. The return rate represents the percentage of products that customers return after purchase. A high return rate can indicate various issues such as product quality, inaccurate descriptions, or poor customer satisfaction. Here’s a closer look at what return rate means and how you can manage it effectively.

How to visualize Return Rate?

The KPI Return Rate can be visualized as a data card, showing the current value. Or you can use bar charts to see trends and to compare your current value with previous time periods.

Return Rate visualization examples

Return Rate

Return Rate

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Return Rate

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