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What does a lower return rate save after recovery value?
Model refunded revenue, reverse logistics, lost product cost and a returns-prevention investment.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Orders / year
- 100,000
- Current return rate
- 15 %
- Target return rate
- 10 %
- Net selling price / returned order
- $80
- Original product cost / order
- $25
- Recoverable product value / return
- $18
- Reverse logistics & processing / return
- $12
- Annual prevention program cost
- $40,000
Annual contribution benefit from fewer returns
Example result only, not a forecast or promise.
- Returns avoided
- 5,000
- Contribution difference / avoided return
- $74
- Original product cost not recovered / return
- $7
What to do with this result
Review sizing, defects and misleading merchandising separately; confirm net resale recovery after refurbishment and resale fees.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Benefit per avoided return = selling price − recoverable returned-product value + reverse-processing cost. Original product cost is unchanged across sold-versus-returned comparison.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Use net collected sales and avoid double-counting returns, commissions or pass-through charges. Demand and customer behavior require validation.