Refunds – RetentionX

Of course, growing is great but with an increasing number of orders, you can have an increasing number of product returns. Product returns and refunds increase the cost and complexity of your business, so it should always be a goal to try to reduce these to the minimum.

This report is exclusively available for custom integrations and

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Definitions

Before you dive into data analysis, let's ensure that we are on the same page with some definitions:

Orders with Refunds	Number of orders for which a refund was issued
PoP Growth	Growth rate of the number of orders with refunds against the previous period (PoP)
Items Refunded	Sum of items that have been returned
PoP Growth	Growth rate of the number of items refunded against the previous period (PoP)
Revenue Refunded	Sum of revenue that has been returned
PoP Growth	Growth rate of the revenue refunded against the previous period (PoP)

By default, revenue is excluding taxes, shipping revenues, and discounts. You can modify the revenue calculation under Company Settings > Report Settings. Please note that this will trigger a complete re-import and recalculation of all your data.

The metrics are shown as a color-coded combined chart followed by absolute figures. Trends get even more clear by the growth rate comparing each data point with the previous period.

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Difference Between Return and Refund

As the purchasing and return dates are different, returns are attributed to the date of purchase: If on a given day the gross revenue is $100 and a month later a $20 product return has proceeded, the net revenue for the purchase day will be updated to $80.

The difference with Refunds is that Refunds are related to the cash-flow movement generated by Returns. This means that Refunds only impact the day the return takes place, and do not impact the day of the original purchase.

Use Cases

Product Returns & Refunds are costly because they have to be reworked or are lost due to a defect. That's why it's important to track not only the number of returns over a period of time but also their reason to maintain it as low as possible. The top reasons why customers return products are:

Damaged products
The product received looks different
Item received is the wrong one

Based on your customer feedback you should initiate the right measures to reduce your return rate. Think about the following:

Offer high-quality product visuals
Build a segment for your high returners and exclude them from special shipping conditions
Incorporate product reviews

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Definitions

Use Cases

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