MarginKoala

What is the economic impact of my returns?

Enter your numbers below. Get the answer first, then Koala's next move.

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Numbers to enter
Model returns against the counterfactual that those orders were kept. Enter the stock recovery that actually applies rather than relying on a hidden full-recovery assumption.
%

Percentage of orders that come back in the same measurement definition.

$
$

Direct product/supplier cost. It can exceed sale value if the original order is loss-making.

$

Return postage, inspection, repacking or other incremental cost caused by the return.

%

Enter 100% only when the full recorded product cost genuinely returns to usable inventory; enter 0% when none is recoverable.

$

Optional offset actually retained from the customer.

Koala's Calculated Result
Economic change from returns compared with the same orders being kept.
MarginKoalaKoala's Professional Opinion

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Frequently asked questions

What is my return rate doing to profit?

Each returned sale eats the margin you would have made plus the reverse-logistics cost of getting it back — so a high return rate is a margin compressor even on the orders you do keep.

Returns & Refunds Cost

What counts as a return cost?

A return cost includes the lost revenue on a returned item, the reverse-logistics cost (shipping the item back and restocking it), and any inspection or refurbishment effort. It is offset by any restocking fee you successfully charge.

Returns & Refunds Cost

Is outbound shipping included?

Include outbound shipping to the extent it was actually incurred and not recovered or refunded in the kept-versus-returned comparison. Keep the treatment consistent with how shipping revenue and costs are entered in the model.

Returns & Refunds Cost

When is a return rate too high?

There is no universal numeric target for this decision. Compare the result with the business’s own economics, history, constraints and explicit target, or with a verified benchmark that matches the same metric definition and market context.

Returns & Refunds Cost

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.