4 Return Metrics To Measure Your Stores’ Returns

Table of Contents

Last Updated: July 2024

Do you know, the e-commerce return rate ranges from 8% to 88% across different industries? Thus, it’s essential for you to regularly measure various aspects of your product return to know how the whole story of your product return. 

Through this article, we will guide you on 4 return metrics that you can use and measure your return.

Let’s dive in and look at the content in this article:

4 Types Of Return Metrics

1# Refund Rate Metrics

This metric is used to measure the quality of your products as customers usually demand a refund when either they are not satisfied with the quality of the product or there was some confusion due to your product marketing. 

To measure refund rate metrics use this formula:

Orders refunded in a period/Total returns in the same period

If your refund rate is high or is increasing then it may indicate the following things:

  • Your manufacturing process is slow compared to the demand for the product.
  • The manufacturing process is not up to the mark.
  • Marketing and the product are not a match.

2# Exchange Rate Metrics

Exchange rate metrics allow you to measure the problem in your packaging. Mostly the exchange request is raised due to the delivery of products with different sizes, colors, or something that your customers were not expecting. 

To measure exchange rate metrics use this formula:

Orders exchanged in a period/Total returns in the same period

You need not worry if the exchange rate is high, which indicates that you can keep your customers alive. Moreover, you can use exchange rates and return reasons to keep health check metrics for your business. 

3# Operational Efficiency Metrics

The operational efficiency metric lets you know how effective your agents are when dealing with a return request. It even allows you to know the burden on your agents. 

To get the operational efficiency rate, use the formula written below:

Approximate time spent by a rep per day X Number of days/Total returns

You should reduce the operational time when accepting a return as customers are vulnerable while returning a product. This will ensure that you provide good customer service and scale up your customer experience. 

4# Return Rate

Return rate metrics give you the best overview of the returns in your store. It shows the percentage of the orders sent back to the percentage of actual orders. 

To get a return rate, use this formula:

Total returned orders in a time/ Total orders in the same time

You can use this formula and get in-depth knowledge of returns and work to reduce them. 

Also Read: E-commerce Returns Management: A Definitive Guide

Strategies To Reduce Return On Your Store

Market Your Product Properly

If you showcase your product well then there are chances that your customers would get to know a lot more before they order. This will reduce the chances of confusion and can reduce product returns in your store. 

Some of the steps that you can take while showcasing your products are:

  • Use high-quality images of your product. 
  • Try and add images from every angle of the product.
  • Write a detailed description of the product like the fabric used, color, and more. 
  • Highlight the most important words in the description. 
  • Add product videos like a “how-to-use” guide. 
  • Showcase a dynamic size chart so that there is no confusion about the size. 

Integrate Live Support On Your Platform

Live support is the quickest and easiest way for your customers to reach out to you and solve their queries. With the help of live chat, customers can also get recommendations before buying a product. 

This practice will reduce your store’s return rate and boost your website’s conversion rate. 

Provide An Order Tracking And Delivery Estimate

Sometimes a customer orders a product for a specific occasion and if they receive the product after the occasion is over, they might return it. Thus, you should provide your customers with an estimated delivery date so they would know whether to expect the order before the occasion or not. 

Moreover, you should also send them real-time order tracking with notifications that update them about the delivery via text or email. 

Focus On Packaging

If you deliver fragile products like crockery, electronics, and more then you should focus on providing safe packaging so that it reduces the chances of product damage. You can use thermocol balls, hard cardboard, air-filled plastics, and more 

Promote Exchange During Return

Do you know, 57% of the customers prefer to exchange the product rather than return it? Thus, you should always give them the option to exchange the product for a different size, color, style, or more. 

Additionally, you can also transfer the refund amount to the store wallet. This will ensure that the customers buy your product in the future with the store wallet money. 

Collect Feedback

Whenever a customer requests a refund, try to get the reason from them. This will allow you to get to the root cause of product refunds and work towards improving the product. You can send them a form via email and collect the desired information. 

Implement Return Policy To Fight Return Fraud

You must have a strong return policy that should be showcased to a customer while ordering the product. It can contain the return window, procedure to return the product, items that can not be returned, and many more. 

Moreover, you can even imply certain rules like OTPs, product picture, and more to eliminate the chance of a scam. We have a separate article on “Guide To Approach Return Approach” which you can check out and implement some ideas from it in your store. 


Now, in the end, we hope that this article has helped you know some new return metrics. Here we have also mentioned the strategies that you can imply in your store to reduce the return rate. 

However, if you are looking for software that can manage your returns, then you should try Saufter. It provides 24X7 return and order management and even sends notifications to your customers like product return requests accepted, refunds processed, order in transit, and many more. 

So, what are you waiting for?

Start your 15 days free trial now!



Automate Customer Support

Group 6342@2x
Group 6342@2x
Order delay monitoring
Group 6342@2x
Subscription modifications
Group 6342@2x
Missing orders
Group 6342@2x
Subscription cancellations
Group 6342@2x
Much more
Claim Your 6 Months Of FREE Credits Now

Reduce Refunds
Automate Customer Support

Group 6342@2x
Group 6342@2x
Order delay monitoring
Group 6342@2x
Missing orders
Group 6342@2x
Much more
Claim Your 6 Months Of FREE Credits Now


Claim Your 6 months of FREE Credits Now!

Get the code. Use anytime in the next 6 months.

Helplama Helpdesk is now Saufter.io!