Returns Processing Cost Calculator
How much does handling returns actually cost my business?
Your numbers
Result
Annual returns cost
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How this is calculated
Returns are not free. Each one costs inspection, repackaging, restocking, and sometimes disposal. This calculator turns your return rate and per-unit processing cost into a monthly and annual hit to the bottom line.
- Returns = shipments x return rate%
- Cost = returns x processing cost per unit
What to make of the number
E-commerce average return rate is 8-15% (clothing higher). Reduce it to protect margin.
Frequently asked questions
Does FBA handle returns automatically?
Yes, but the cost is deducted from your account and still hits your margin.