Return rate is calculated by dividing total returned orders by total shipped orders, typically expressed as a percentage. For most e-commerce categories, return rates range from 5-30%, with apparel and footwear often exceeding 20%. A rising return rate signals product-market mismatch, sizing issues, or poor product descriptions. Tracking return rate by SKU, category, or season helps merchants pinpoint problems and reduce return-driven losses.
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Return Rate
The percentage of orders that customers return within a given period, a key metric for product and operational health.
Related terms
- Return Reason Classification — The process of categorizing why customers return products using AI to analyze descriptions, images, or structured data.
- Refund Rate — The percentage of revenue returned to customers through refunds within a given period.
- Return Policy — The documented rules governing whether and how customers can return products for refunds or exchanges.
- Chargeback — A dispute filed by a customer with their bank to reverse a payment, often resulting from a failed return or refund experience.