Understanding Return Rate
How we calculate. Return rate % = returned orders (or units) ÷ orders (or units sold) × 100. The form uses the same arithmetic as the worked examples on this page. See our methodology and accuracy policy.
Real-world scenario: A typical Return Rate case uses returns 120 and orders / units sold 2000. Enter the same figures below to reproduce the worked path.
What is Return Rate?
A reverse-logistics and customer-experience KPI. E-commerce often tracks by units; B2B may track by orders—label the basis.
- Same basis for returns and denominator
- Define the return window
- Segment by reason for action
The Formula
Worked Example
Common Use Cases
- E-commerce ops: reverse volume
- Product quality: defect returns
- Network design: returns processing load
Pro Tips
- Separate refused vs customer returns
- Exclude exchanges if policy requires
- Watch category outliers
Limitations: Return Rate results are educational logistics and supply-chain planning aids—not SLAs, carrier contracts, or inventory valuation advice. Confirm definitions with your WMS/TMS and finance policies.
FAQ
Orders or units?
Either—keep both inputs on the same basis. Unit return rate can differ from order return rate.
What if orders is 0?
Return rate is undefined—enter a positive order (or unit) count.
Authoritative References
For logistics and supply-chain KPI definitions, consult:
- CSCMP — supply chain management resources
- ASCM / APICS — operations and inventory body of knowledge
- ISO 28000 — security management for the supply chain (context)