Airboxr - No-code querying and data-enrichment interface for GSheets. | Product Hunt
 

What is Product Return Rate?

Product Return Rate refers to the percentage of total products returned during a period.

 

Product Return Rate formula.

Return Rate = [Returned products in a time period / Total products ordered in the same time period] x 100

 

Tracking product return rates can give insights into your customer preferences. The key in managing returns is to manage customer expectations and avoid a refund by exchanging the item for another one that suits your customer better.

Within product returns, you may wish to drill down into understanding whether or not your business can successfully match the customer to another product. If the customer cannot find something they like, but wish to remain a customer, they would instead accept an exchange for store credits. The higher the exchange rate (as opposed to a refund), the better for customer relationships.

 

Learn how to build your metrics strategy

Data

Building an e-commerce revenue analytics strategy

Learn how to design a revenue analytics strategy for your D2C brand.

Showcase

Key business metrics that drive growth at Huel

Find out how to track the same metrics as Huel, for your Shopify store.

Hacks

Using RFM analysis to identify your most valuable customers

Learn how to identify your most valuable customers using the RFM analysis framework.

Hacks

How to import Shopify data into Google Sheets (with filters!)

5 steps to import your Shopify data to Google Sheets, with filters.

 

What are the industry benchmarks for Product Return Rate?

Return rates vary according to the industry. Some industries and businesses are more susceptible to high return rates than others. For E-commerce, the average return rate lies within the range of 20%-30% (Source: Hubspot).

 

How can you improve Product Return Rate for your store?

You can reduce customer returns by setting the right expectation up front, ensuring that products ship out promptly and safely, and measuring the performance of your shipping partners. Add high-quality visuals of your products. 23% of products are returned due to inaccurate depictions of the product. Using high-resolution images with a detailed view of the product can bridge the gap between the customer’s expectations and the reality of the product.

Gather customer feedback for a product return. This will help you understand the reasons for the returns and identify problems with products and processes.

Add product reviews and ratings for each product and encourage customers to provide accurate and insightful product reviews. Product reviews are effective indicators of quality. According to a study conducted by Boston University, products with average higher ratings result in not only higher sales, but also lower returns.

 

Measure your Product Return Rate performance with Airboxr.

D2C brands from 60+ countries use Airboxr to analyze their revenue and make quick decisions. Start with a free account now.

 

Download our whitepaper.

Get free access to our whitepaper on marketing metrics for D2C brands

Your cart
    Checkout