MarginKoala

How much are returns costing me?

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

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Numbers to enter
Model one return against the counterfactual that the customer kept the order. Enter the recoverable stock percentage that actually applies; no full-recovery assumption is pre-filled.
$
$

Direct product/supplier cost attached to the returned order.

$
$

Labour, repacking, refurbishment or other incremental cost caused by the return.

%

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

$

Offset retained from the customer, if any.

Koala's Calculated Result
Economic change caused by one return compared with keeping the sale.

Add the original sale value and product cost, then enter the return-specific costs and stock recovery that apply.

MarginKoalaKoala's Professional Opinion

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Frequently asked questions

What does each return really cost?

Each return costs the return-leg shipping plus the inspection/refurb effort, minus any restocking fee and minus the recovered resale margin on items you can list again. That net is the fully-loaded economic cost per return.

Returns Cost

What is "recovery margin"?

Use the calculator result for the inputs entered and keep any market-response or operating recommendation separate from the deterministic calculation. Support that additional assumption with the business’s own evidence or an explicitly labelled scenario.

Returns Cost

How do I size the inspection cost?

Time the inspection per return — minutes per unit — then multiply by the labor rate of the person doing it. Add any refurb materials if you have them. A round $/return works for planning; a measured $/return is sharper for tight-margin SKUs.

Returns Cost

When is each return worth absorbing?

When the net per-return cost is below ~5% of the unit value, returns are a quiet margin drag. Above ~10% per unit value, returns are a real headwind — fix the source (sizing, photos, packaging) before raising the restocking fee.

Returns Cost

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