Median Return Rate for Internet Retailers = 3%

[jeffweico]

According to a survey by Internet Retailer Magazine, the average return rate for internet retailers is 3%.

I know that we discuss return rates sometimes and everyone wants to know "what is considered a high return rate". So, judge for yourself.

Top 500 - Reducing the rate of returns - Internet Retailer

I was surprised, because my average return rate has consistently been under 1%. Back in my foo-foo days, it was more like 5%.

[Gamefreak]

According to amazon which is my main sales channel my return rate is VERY low. Well below 1%

[jeffweico]

Of course, the return rate will also depend on WHAT you sell.

For example, if you sell memory and someone buys an 8GB stick of DDR3/1600 memory, it probably won't be returned unless it is defective. But, if you are selling apparel, shoes, or anything that people wear, then it is much more likely to be returned.

And with the foo-foo's, a 5% return rate is probably on the low side. Of course, when it comes to quality, foo-foo's are generally lacking.

Lastly, you need to look at the return rate over time. Sometimes I can go for two months without a single return, and then get hit with 4 return requests in one week. It happens. So, my return rate for that week would be very high, and that number would be misleading. I think you need a minimum of 6 months to determine your TRUE return rate. A year would be even better, and more accurate.

I always calculate this stuff. I LIVE in an Excel spreadsheet. ROI, return rates, rates of return, weekly and monthly sales fluctuations, etc. I really DO have this down to a science. I think everybody should. Real numbers keep you in the driver's seat and allow you to make informed decisions. Gut instincts are too often wrong and should NOT be trusted.

[TGMT²]

Originally Posted by jeffweico

Of course, the return rate will also depend on WHAT you sell.

Exactly, and selling used items (like I do) will have it's certain parameters also.

In most cases, a partial refund will suffice: Which I count towards a return, I also count full refunds where the buyer keeps the item as a return also.

I my return rate is at 2% ... Which I think is exceptionable for used items.

[MM78]

I have a 2-3% rate of return within a 1yr period.

[rsot]

When my volume was higher - average was 1-2% - now since I am dabbling, 0% return.

[vogeltron]

About 1%. Have a no return policy. I check all my items before I ship make sure the items have clear pics and a all appropriate info is provided. I also test/check all items for flaws or damage before shipping. About once a year I go through and auction all any defective products.

[JamesNorth101]

Around 1% for me, mainly due to people changing their minds.

[rsot]

Top 500 - Reducing the rate of returns - Internet Retailer

[3581512]

Originally Posted by jeffweico

Of course, the return rate will also depend on WHAT you sell.

For example, if you sell memory and someone buys an 8GB stick of DDR3/1600 memory, it probably won't be returned unless it is defective. But, if you are selling apparel, shoes, or anything that people wear, then it is much more likely to be returned.

And with the foo-foo's, a 5% return rate is probably on the low side. Of course, when it comes to quality, foo-foo's are generally lacking.

Lastly, you need to look at the return rate over time. Sometimes I can go for two months without a single return, and then get hit with 4 return requests in one week. It happens. So, my return rate for that week would be very high, and that number would be misleading. I think you need a minimum of 6 months to determine your TRUE return rate. A year would be even better, and more accurate.

I always calculate this stuff. I LIVE in an Excel spreadsheet. ROI, return rates, rates of return, weekly and monthly sales fluctuations, etc. I really DO have this down to a science. I think everybody should. Real numbers keep you in the driver's seat and allow you to make informed decisions. Gut instincts are too often wrong and should NOT be trusted.

Would you happen to have an excel template that you use?

[JamesNorth101]

Originally Posted by jeffweico

I always calculate this stuff. I LIVE in an Excel spreadsheet. ROI, return rates, rates of return, weekly and monthly sales fluctuations, etc. I really DO have this down to a science.

Personally cannot get enough statistics about my business. Excel is just brilliant for it, so long as the formulas are all entered correctly.

[libbo]

Usually the cheaper the product I sell, the worse the return rate is!!
Had started to dabble in Chinese phone cables and chargers, never had so many headaches in my life!! I think the Royal Mail were the only real winners...lol

[Laritha]

Originally Posted by libbo

Usually the cheaper the product I sell, the worse the return rate is!!
Had started to dabble in Chinese phone cables and chargers, never had so many headaches in my life!! I think the Royal Mail were the only real winners...lol

Its the opposite for me. Cheaper items, less returns. I guess people dont care about losing $3 on a defective cable. However, a $200 phone, they want to return.

[rsot]

Pretty rough Laritha - phones are always a problematic affair - have to take extra steps to make sure the return rate is decreased and you are covered for losses...

[libbo]

Originally Posted by Laritha

Its the opposite for me. Cheaper items, less returns. I guess people dont care about losing $3 on a defective cable. However, a $200 phone, they want to return.

Wish it was like that here in the UK............they will return something that costs £2.00!!
No fairplay, you have to do your research properly on anything you trade in.
Cheap Chinese imports will always have a high return rate, they always seem to slip in some low grade junk amongst your order. I have been over and sourced my products myself and they still send a small percentage of low grade items. I think they just dont know any better way to trade!!