Return Cost Calculator
A multiple of the margin on a kept order.
Cost of one return
$38.41
1.5× the contribution on a kept order
A return costs 1.5× the contribution you make on a kept order, so it takes 1.5 good orders to absorb one. Netting returns off revenue misses all of it except the sale.
How the Return Cost Calculator works
A return costs several times the contribution you make on a kept order, so it takes several good orders to absorb one. Netting returns off revenue misses everything except the sale — the shipping both ways, the labour, the unrecovered goods and the acquisition cost already spent.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What does a return actually cost?
Return shipping, the outbound shipping already paid, processing labour, the payment fee that is not refunded, the acquisition cost that was spent to win the order, and whatever of the goods cannot be resold at full price.
How many sales does one return cost me?
Divide the return cost by contribution per order. For most ecommerce it lands between two and four, which reframes a 20% return rate as considerably worse than it sounds.
Which cost is largest?
Usually the unrecovered goods, then the shipping. Labour is small per return and large in aggregate, which is why it gets overlooked at exactly the volume where it matters.
How do I reduce it?
Prevent the return rather than process it more cheaply. Better sizing information, accurate photography and honest delivery expectations move the rate; process improvement only moves the cost per return.