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Calculate return rates, analyze return reasons, compare to industry benchmarks, and discover strategies to reduce returns and increase profitability.
| Industry | Average Rate | Typical Range | Notes |
|---|---|---|---|
| E-commerce Average | 16.9% | 15-20% | Overall online retail average (2025) |
| Clothing & Apparel | 26% | 20-30% | Highest return rates due to sizing issues |
| Shoes & Footwear | 22% | 18-25% | Fit and comfort concerns |
| Electronics | 12% | 8-15% | Lower rates, often defect-related |
| Home & Garden | 10% | 8-12% | Size/color mismatches common |
| Beauty & Cosmetics | 8% | 5-10% | Low return rates, hygiene concerns |
| Jewelry & Accessories | 15% | 12-18% | Gift returns and sizing |
| Sports & Outdoors | 14% | 10-18% | Sizing and performance expectations |
| Furniture | 18% | 15-22% | Size, color, and damage issues |
| Brick & Mortar | 8.9% | 6-10% | In-store purchases have lower returns |
Source: National Retail Federation, Shopify, and industry reports (2024-2025 data)
Return rate is one of the most critical metrics for ecommerce businesses. In 2025, the average online return rate has climbed to 16.9%—nearly double the 8.9% rate for brick-and-mortar stores. Understanding and optimizing your return rate can significantly impact profitability.
Unit Return Rate
(Units Returned / Units Sold) x 100 = Return Rate %Revenue Return Rate
(Return Value / Total Sales Value) x 100 = Revenue Return Rate %True Cost of Returns
Refunds + Processing + Shipping + Lost Inventory - Restocking FeesReturns typically cost 20-65% of the original item's value when you include:
Converting refunds to exchanges can retain up to 50% of revenue that would otherwise be lost. Implement an exchange-first return flow that makes it easy for customers to swap for a different size, color, or product. Many customers are happy to exchange rather than return entirely—you just need to make it convenient.
Identify most profitable products accounting for returns
Calculate average order value and optimization strategies
Understand long-term customer value beyond single purchases
Optimize inventory management and reduce deadstock