Model how your return rate erodes unit economics: enter units sold, selling price, COGS, return %, and the per-return handling cost, then see net profit loss and the final blended margin.
The model is live. All inputs are recognized: units sold, unit price, unit COGS, return rate, and per-return fallout cost (restocking + shipping). Tune any field and the model recomputes instantly.
Estimated units returned = units sold × return rate. This is the volume of goods coming back that must be restocked, refurbed, or written off.
Losses from returns are twofold: the handling cost per return (restocking, shipping back, inspection, repackaging) plus the lost gross margin on every returned unit — the sale you never keep.
Your effective blended margin after accounting for all return costs. The gap between gross margin % and net margin % is the profit you are silently donating to returns.
Distinct from food-cost COGS analysis: this models demand-side return leakage on top of a fixed per-unit cost structure, not ingredient-bill swings.