Product Return Rate Calculator
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How do you calculate product return rate?
Product return rate is calculated using the formula: Return Rate = (Number of Items Returned ÷ Number of Items Sold) × 100. For example, if you sold 1,000 products and 50 were returned, your return rate is (50 ÷ 1,000) × 100 = 5%. This metric helps you understand customer satisfaction and product quality issues.
How do I calculate my return rate?
To calculate your return rate, divide the total number of returned items by the total number of items sold during the same period, then multiply by 100. You can calculate this daily, monthly, or annually. For instance, if you had 25 returns out of 500 sales last month, your return rate is (25 ÷ 500) × 100 = 5%.
What is the product rate of return?
The product rate of return is the percentage of sold items that customers return to the retailer. It's expressed as a percentage and calculated over a specific time period. This metric indicates product quality, customer satisfaction, sizing accuracy, and the effectiveness of product descriptions. Different product categories have varying typical return rates.
What is an acceptable product return rate?
An acceptable product return rate varies by industry. E-commerce averages 20-30%, clothing/fashion sees 30-40%, electronics typically 10-20%, and books/media around 5-10%. Rates below industry average indicate good performance, while significantly higher rates suggest issues with product quality, descriptions, or customer expectations that need addressing.
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