Return Rate (Returns %)

Overview

Return Rate (Returns %) refers to the total value of returns as a percentage of order revenue.

📘

Returns % = Total Return Value / Order Revenue

The calculation is based on data from the Orders table and the Refunds table.

Insights and Actions

Return Rate (Returns %) is a critical metric for evaluating the impact of product returns on your business's revenue and profitability. Efficiently leveraging Return Rate data can guide strategic business decisions:

• Analyze Return Reasons: Dive into the reasons behind product returns to identify common issues or trends, which can inform product improvements or changes in your return policy.
• Optimize Product Quality and Descriptions: Ensure product descriptions are accurate and reflect the quality and specifications of the items to minimize returns due to unmet expectations.
• Enhance Customer Service: Implement proactive customer service strategies, such as follow-ups or satisfaction surveys post-purchase, to resolve issues before they lead to returns.
• Refine Your Return Policy: Review your return policy to ensure it's clear and fair but also structured to discourage unnecessary returns, balancing customer satisfaction with profitability.

Example Use

Prompt

What's my returns % over the past 365 days?

Response