Glossary
Return rate
The share of what you sold that customers sent back, by units or by value, measured on the orders of a given period.
Formula
Return rate = units returned ÷ units sold × 100, or refunded value ÷ gross sales × 100
Worked example
In March a brand sells 2,000 units, and 460 of them have come back by the end of April. Its March return rate is 460 ÷ 2,000 = 23%.
In fashion, footwear and sportswear
Compare a style with its own category, not with the whole store: dresses and footwear come back more than accessories. A style far above its category is often a fit or sizing signal.
Where it misleads
Returns arrive weeks after the sale, so recent weeks always look better than they will be. Measure on the order date, and let the return window close before you judge a month.