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Retail & Allocation lesson

Return rate

Returns are refunds for items brought back. The return rate shows them as a % of sales.

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About 5–10 minutes · no sign-up needed

The idea

Returns are refunds for items brought back. The return rate shows them as a % of sales:

Formulas

Returns ÷ Sales × 100

Key points

Return rateReturns ÷ Sales × 100.
Why it mattersRefunds cut sales, and returned items can't always be sold again.
What it points toHigh returns usually mean quality, sizing or product description problems.

Look at returns by product, not just by store: one faulty item can drive a whole store's rate.

Practice

Try each one in your head first, then open the answer.

1. What is Halifax's return rate?
$180 ÷ $6,000 × 100 = 3%
2. Your dashboard needs the chain's return rate as one headline number. Which visual?
Card
3. Tap the store with the highest return rate.
Vancouver, at 8%.
4. Vancouver's return rate is 8%, the highest in the chain. What should you check first?
Which products are being returned, and why

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed