Return Fraud Cost Calculator
False positives cost more than the fraud.
Monthly fraud loss
$1,228
30 fraudulent returns
False positives cost more than the fraud they prevent when detection is set too aggressively — a wrongly refused genuine return loses the customer, not just the order. Costing them at three times the order contribution is a conservative way to keep that trade-off visible.
How the Return Fraud Cost Calculator works
Detection set too aggressively costs more than the fraud it prevents, because a wrongly refused genuine return loses the customer rather than the order. Pricing false positives at several times the order contribution keeps that trade-off visible.
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 counts as return fraud?
Wardrobing — using and returning; returning a different or empty item; claiming non-delivery on a delivered parcel; and serial returning that exceeds any plausible genuine rate.
How common is it?
Estimates vary widely and self-reported figures from vendors selling detection tools should be treated carefully. What matters is your own data on serial returners.
How do I detect it without false positives?
Look at patterns across a customer's history rather than at single returns. One suspicious return proves nothing; a consistent pattern across many orders does.
What do I do about it?
Quietly restrict rather than confront — remove free returns, require original packaging, or decline future orders. Public accusations of fraud go badly wrong when the pattern turns out to be innocent.