Shipping and returns: what they really cost

In short: Returns cost more than return shipping. You lose the revenue, pay handling and sometimes goods become unsellable. Count return rate × cost per return as a fixed item per order.

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What belongs in return costs

  • Return shipping, if you bear it.
  • Handling and inspection of goods.
  • Value loss if goods can no longer be sold as new.
  • Payment fees that are often not refunded.

How to lower the rate

  • Accurate sizing and good photos.
  • Reviews with size feedback.
  • Analyse the most common return reasons.

Effect on profit

At 10% returns and €6 per return that is €0.60 per order plus lost contribution margin. The returns calculator shows what that adds up to per month.

Frequently asked questions

Do I have to pay for returns in online retail?

It depends on your terms and applicable law. Check with legal advice, this guide does not replace it.

Work it out with your numbers

The matching calculator runs in your browser. No sign-up, nothing is saved.

Returns Cost Calculator

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