Returns · Profit impact

Model the return rate.
Protect real profit.

Measure expected returned orders, recoverable value, handling cost, and profit erosion.

OrderscountSale price$Product cost$ / orderNonrefunded fees%Return rate%Recovered value% of returned priceReturn handling$ / return

Estimated return impact

-$450.00

Expected returns10.0

Profit without returns$2500.00

Profit after returns$2050.00

Recovered value$100.00

Assumes entered fees are not refunded and product cost is incurred on every order. Adjust recovery for resale, restocking, reimbursement, or salvage.

Calculation method

Expected kept revenue plus recovery, minus all modeled costs.

Compare the result with the same order set at a zero return rate to isolate return impact.