Shopify Return Rate Impact Calculator
See how returns eat into your Shopify monthly profit. Enter your return rate and find the maximum rate you can absorb before going unprofitable.
By Marginory team · Online sellers with hands-on experience across Etsy, Shopify & POD
Shopify plan
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Return impact
Profit per completed order$27.69
Loss per returned order-$25.00
Break-even return rate52.6%
Monthly at your return rate
Returned orders10 of 100
Profit without returns$2769.02
Profit lost to returns-$526.90
Net monthly profit$2242.12
Effective margin44.9%
How this is calculated
Effective profit = completed orders × profit/order − returned orders × (product + both shipping legs)
Break-even return rate = profit per order / (profit per order + loss per return)
Assumptions:
- Shopify refunds payment processing fee on returned orders (net loss = product + both shipping legs)
- Return shipping cost = cost you bear for the label (varies by your policy)
Source: https://www.shopify.com/pricing · Last verified: 2025-06-01
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Frequently Asked Questions
Does Shopify refund payment processing fees on returns?
Since August 2023, Shopify Payments refunds the processing fee when you issue a full refund in Shopify admin. For partial refunds, only the proportional percentage portion is refunded — the $0.30 fixed fee is not refunded. Third-party gateways have their own refund policies (Stripe and PayPal generally do not refund processing fees).
What is the average return rate for Shopify stores?
Shopify store return rates vary widely: fashion/apparel 20–30%, electronics 8–12%, home goods 5–10%, digital products 0–2%. The e-commerce industry average is around 20%. If your return rate exceeds 15% on physical goods, investigate product descriptions, sizing info, and packaging quality.
How do I reduce returns on my Shopify store?
Key tactics: detailed size charts and measurements, multiple product photos including scale references, honest descriptions (don't over-promise), fast and careful packaging, and a responsive support team that handles pre-purchase questions. For high-value items, consider adding a video demonstration.