Return Rate Calculator
Calculate your product return rate to assess quality and satisfaction.
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Understanding Customer Returns
A high product return rate can cripple a dropshipping business. It not only leads to lost revenue but also indicates potential problems with product quality, misleading descriptions, or shipping issues. Monitoring this metric is essential for maintaining a healthy store.
Formula: `(Number of Returned Units / Total Units Sold) * 100`.
A high return rate (typically over 10-15% for many niches) is a red flag. It tells you that you need to investigate the root cause, whether it's by ordering a sample to check quality, improving your product page copy and images, or finding a more reliable supplier.