Calculator · Returns
Calculate return costs: what a return costs you on OTTO
From one month's sales and returns, the calculator works out your return rate, the cost per return and what returns cost you on every item sold.
| Return rate | 9% |
| Cost per return | 10.70 € |
| of which loss of value (not resellable) | 2.70 € |
| Return costs per item sold | 0.96 € |
The refund to the customer isn't listed as a cost, since it only takes away the revenue. What counts is what the return costs you on top.
MargenOptimierer shows the return rate per item, even when the product group looks fine, and what returns cost you. MargenOptimierer costs from 49 € net per month. You can test the first 14 days for free, no credit card needed.
Calculating return costs: the formula
The return rate is the share of your sales that comes back. A return isn't expensive because of the refund, since that only takes away the revenue. What's expensive is return shipping, the work in the warehouse and goods you can no longer sell as new afterwards.
Return rate=returns÷sales
| Return shipping |
| +Handling |
| +Loss of value: purchase price × share not resellable |
| =Cost per return |
Return costs per sale=cost per return×returns÷sales
Enter this amount per sale in the contribution margin calculator.
Example: 36 returns on 400 sales
Say you sell 400 units a month and 36 come back.
Return rate=36÷400=9%
| Return shipping | 5.50 € |
| Handling | +2.50 € |
| Loss of value (15% of 18.00 € purchase price) | +2.70 € |
| Cost per return | 10.70 € |
Return costs per month=36×10.70 €=385.20 €
Return costs per sale=385.20 €÷400=0.96 €
What a return costs on OTTO
If you accept a return on OTTO, OTTO refunds you the OTTO commission on the item. You bear the return shipping, the work in the warehouse and the loss of value yourself. With goods shipped by freight, you even collect them from the customer at no charge.
Read more
- Lowering your OTTO return rate: what a return costs you
- Where do I see my returns on OTTO?
- How do I calculate my profit per item on OTTO?
- Calculate profit and contribution margin per item on OTTO
- Calculate retail margin: calculator with formula and markup
- ROAS calculator: calculate break-even ROAS and ACoS for OTTO