Product Refund Rate is the percentage of total sold products that were refunded during a period of time.
Refund rate is often seen as a quality assurance metric. Possible reasons for an increasing refund rate may include: product does not meet expectations set by marketing, quality of materials is below customer expectations, or substandard manufacturing processes.
Returns may not result in outflows in revenue, but refunds will. Many marketers miss out on these metrics during reporting, leading to inaccurate revenue reports.
Product refund rate benchmarks are not publicly available.
Provide customers with the option to receive a replacement. If the same product is not available as a replacement, upgrade them to another product at the same price. If you do not have that option, give them store credits if you can.
D2C brands from 60+ countries use Airboxr to analyze their revenue and make quick decisions. Start with a free account now.
Get free access to our whitepaper on marketing metrics for D2C brands