How to calculate ecommerce return rate by product and channel
The short answer
Return rate is units returned divided by units sold over the same period. Calculate it for each product, split by online and in-store sales, then compare. If online return rates run well above store rates on the same product, that points to items customers could not see or try before buying.
Return rate by product and channel, compared
Why it matters
Returns cost you the sale plus handling and lost resale value. Knowing which products return most, and whether the cause is buying without seeing, tells you whether to fix the page, the product or the price.
The question to ask
Copy this into Lexi as written.
How to work it out
1. Calculate return rate by product. Divide units returned by units sold over 12 months, using the order date of the original sale.
2. Split by channel. Calculate the rate separately for online and in-store sales of the same product.
3. Test the link. Compare online and store rates product by product, and check whether first-time online buyers return more than repeat customers, since buying unseen hits new customers hardest.
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for a sporting goods retailer. It compares return rates for three products online and in store over a year.
- Running jacket: 22% online, 6% in store
- Yoga mat: 5% online, 4% in store
- Cycling shorts: 30% online, 8% in store
What the data shows
Sized apparel comes back far more often online. The yoga mat barely changes by channel.
What it means
The gap points to fit, which customers cannot check without trying the item on. Repeat online buyers of cycling shorts return 12%, against 41% for first-time buyers.
What to do
Add size guidance aimed at first-time buyers on apparel pages.
Want me to split return rates by customer type for the full range?
Frequently asked questions
What is a good return rate for ecommerce?
Online purchases come back far more often than store purchases. The National Retail Federation and Happy Returns 2025 Retail Returns Landscape report estimated that 19.3% of US online sales would be returned in 2025, against 15.8% of all retail sales. Treat those figures as a market reference, then track each product category against its own trend.
Should I count exchanges as returns?
Count them separately. An exchange keeps the sale but still costs you handling and sometimes a second shipment, so report both rates side by side. Combining them hides how many customers leave with their money, which is the number that drives lost revenue.
How do I match returns to the original sale?
Link each return to the original order line so you can see its product, channel, discount and customer. Returns recorded without an order reference cannot be attributed, so capture the order number at the point of return.