Refund rate: Definition, Formula & Why It Matters
Also called: Return rate
Refund rate is the percentage of your sales (by value or count) that get refunded or returned over a period. It directly reduces realized revenue and can erode an otherwise healthy margin, especially when return shipping and restocking come out of your pocket.
Refund rate formula
Example
$2,000 in refunds on $40,000 of sales is a 5% refund rate.
Why it matters for Reverb sellers
A rising refund rate is an early warning about listing accuracy, packing, or product quality. Left untracked, it silently drags down net profit and can hurt your standing with buyers.
How Verbstack helps
Verbstack tracks refunds against sales so you can watch your refund rate and catch problems early.
Track this on every order, automatically.
- ✓ Real fees, margins, and profit on every Reverb sale
- ✓ COGS and inventory tracked for you, no spreadsheet
- ✓ Full history and a live monthly P&L
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Related terms
See this number on every order.
Connect your Reverb shop and Verbstack tracks your fees, margins, and profit automatically.
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