Marketplace Return Rate Profit Calculator
Estimate how returns change order profit after refunds, return shipping, restocking cost and salvage value.
Enter return behavior
Advanced assumptions
Expected profit per order
$9.66
Total expected profit on 100 orders: $966.40
88 kept orders, 12 returned orders
Profit impact of returned orders
Fees on refunded orders vary by platform. Add unrecovered fees to restocking cost if needed.
For beginners: how to read this result
This calculator estimates financial impact only. It does not advise on return policies, warranties or consumer law.
Understanding return costs
Returns are not just lost sales — they carry hidden costs that can wipe out your margin on multiple orders.
- • Refund admin fees — platforms may retain a portion of fees even when you refund (e.g., Amazon retains 20% of order-related fees up to $5 for non-media items ).
- • Return shipping — you often pay for the return label even if the item is unsellable.
- • Restocking labor — inspection, repackaging, and inventory re-entry all cost time and money.
- • Salvage value — some returned items can be resold as open-box, refurbished, or through liquidation channels, recovering 5%–70% of original value .
Return rate benchmarks by category
Online purchases are returned at 2–3× the rate of in-store items .
Quick tips
- → Test a 30% return scenario to stress-test your pricing.
- → If profit per order drops below $5, returns may be eroding your business.
- → Build a reverse logistics process to recover more salvage value .
Frequently asked questions
How do I calculate profit per order with returns?
Start with kept-order profit (sale price minus COGS and fees). Then subtract the full cost of each returned order: refund admin fees, return shipping, and restocking labor. Add back any salvage value recovered from resale or liquidation. Divide total net profit by total orders to get profit per order.
What is a typical ecommerce return rate?
Online return rates vary widely by category. Apparel averages 15–25%, electronics 5–10%, and home goods 8–15%. Overall, online purchases are returned at 2–3× the rate of in-store purchases .
How do marketplace refund fees work?
Platforms often retain a portion of order-related fees when you refund. Amazon, for example, keeps 20% of original order-related fees (capped at $5) for non-media products when you issue a full refund . This means you don't get all your fees back.
What is salvage value on returned items?
Salvage value is what you can recover from a returned item. Unopened items can recover 100% as new stock. Refurbished items recover 70–90%. Open-box resale recovers 50–70%. Liquidation recovers 5–20% .
Should I charge a restocking fee?
Many marketplaces restrict restocking fees. Amazon does not allow them when items are returned in original condition within the return window . If you can charge them, restocking fees help offset inspection and repackaging costs — but check your platform's policy first.
At what return rate does profit disappear?
It depends on your margin and return costs. As a rule of thumb, if your return rate exceeds your profit margin percentage, you're losing money on returns. For low-margin products, even a 10% return rate can be devastating — try the 30% stress test to see your worst-case scenario.