Average Return Order Value Metric
Essential knowledge
Intended Audience:
Business User
Author:
Holger Lierse
Changed on:
22 Oct 2025
Overview
Learn about the Average Return Order Value Metric in Fluent Analytics
Key points
- High-value returns have disproportionate financial impact
- Return processing costs are often fixed regardless of value
- Customer service recovery is critical for high-value returns
- Currency symbols may not be meaningful when viewing multiple retailers in different countries
- Only includes completed return orders
- Revenue timing is based on return order completion, not refund processing
What it measures
Average dollar value per return order for the selected time period.
When to use this metric
- Monitor the financial impact of returns on revenue
- Assess return patterns by order value segments
- Evaluate the effectiveness of return policies
- Guide return prevention strategies
How to interpret
- Good performance: Return values are low relative to average order values
- Potential issues: High return values may indicate quality or expectation issues
- Benchmark guidance: Should be significantly lower than average order value
Technical details
Formula:
SUM(returnOrder.totalAmount) / COUNT(returnOrders) where status = {COMPLETE_STATUS} within the selected time period
Configurable elements:
- COMPLETE_STATUS: Status definitions for complete fulfillments (default: COMPLETE)
