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Return Rate Metric

How-to Guide

Author:

Holger Lierse

Changed on:

16 Sept 2025

Key Points

  • Percentage of orders that result in return requests.

Steps

Step arrow right iconWhat it measures

Percentage of orders that result in return requests.

No alt provided

Step arrow right iconWhen to use this metric

  • Monitor customer satisfaction and product quality trends
  • Compare return rates across products, channels, or time periods
  • Assess the effectiveness of product descriptions and quality control
  • Benchmark performance against industry standards

Step arrow right iconHow to interpret

  • Good performance: Return rates below industry averages and stable over time
  • Potential issues: Increasing return rates may indicate product or service problems
  • Benchmark guidance: Varies by industry

Step arrow right iconKey considerations

  • Return rates directly impact customer satisfaction and profitability
  • Product categories and sales channels have different expected rates
  • Seasonal variations are normal, especially after gift-giving periods

Step arrow right iconTechnical details

Formula: 

(SUM(return.items.qty) where status = {COMPLETE_STATUS} / SUM(order.items.qty)) within the selected time period

Configurable elements:

  • COMPLETE_STATUS: Status definitions for complete fulfillments (default: COMPLETE)