Finance · E-Commerce Profit Modeling

Return Rate & Profit Impact Modeler

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.

READY
INPUTS SCANNED
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MODEL
RETURN VOLUME
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MODEL
RETURN FALLOUT
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MODEL
MARGIN EROSION
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Inputs scanned

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.

Return volume

Estimated units returned = units sold × return rate. This is the volume of goods coming back that must be restocked, refurbed, or written off.

Return fallout cost

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.

Margin erosion

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.

Product & Cost Inputs

$
$
Cost of goods sold only (product, packaging). Platform fees excluded here.
8%
$
Restocking + inbound/outbound shipping + inspection + repackage per returned unit.

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.

Modeled Impact

Net profit
$0.00
Profit lost to returns $0.00
Gross margin %
0.0%
Net margin %
0.0%
Units returned
0
Return cost / unit
$0.00
Blended net margin

Total revenue (gross) $0.00
Gross profit (pre-return) $0.00
Handling costs on returns $0.00
Lost margin on returns $0.00
Total return cost $0.00
If you cut return rate from 8% to 4%, you would recover approx. $0.00 in profit this period.