How to read this result
Use this to price in the cost of orders that come back.
Returns should be treated as an expected cost spread across every sale, not a rare surprise.
Numbers to watch
- • Loss per return
- • Expected cost per order
- • Adjusted profit
- • Maximum sustainable return rate
What to do next
- 1.Avoid high-return categories unless margin can absorb it.
- 2.Use conservative return assumptions for fragile or fit-sensitive products.
- 3.Test promotions only after returns are priced in.