Free tool
What are returns actually costing you?
Estimate the monthly and annual cost of product returns based on your own order volume and return rate.
Estimated monthly cost
£10,200
Estimated annual cost
£122,400
Illustrative estimate only, based on the figures you enter (lost revenue on returned orders plus handling cost) - not audited or specific to any real dataset. See the real cost of overstocking for the research this is based on.
Why this matters
Returns are a lagging indicator, not the root cause
By the time a return is processed, the product issue behind it - a sizing problem, a quality defect, a mismatch with expectations - has already cost you the sale and the handling expense. Catching that signal earlier, from post-purchase feedback, is what actually reduces the number this calculator estimates.
See how brands reduce returns with post-purchase feedback for the full picture.
Common questions
Returns cost, answered
How is the estimated cost calculated?
It multiplies your monthly orders by your return rate to estimate monthly returns, then adds the revenue lost on those orders plus your handling cost per return - projected to an annual figure.
Is this an exact figure for my business?
No - it's an illustrative estimate based on the numbers you enter, not an audited calculation. Actual cost depends on factors like restocking, discounting, and write-offs that vary by brand.
What actually drives returns and overstocking?
Often a lack of visibility into product-level satisfaction and demand signal, rather than the purchasing decision itself - see the research behind this in our post on the real cost of overstocking.
How can returns be reduced?
By catching product issues - sizing, quality, expectation mismatches - through post-purchase feedback before they show up as a wave of returns, rather than after.
Founding partners
Catch the issue before it becomes a return.
TrueSignal surfaces product-level quality and satisfaction issues within days of delivery - before they scale into a returns wave.
Become a Founding Partner