Example: Return Rate Margin Loss
A fictional example showing how a small return rate can damage profit when return shipping and resale loss are high.
Scenario
A seller earns $14 profit on a normal order. Four percent of orders come back, and each return costs $32 after shipping, handling, and resale loss. At 100 orders, return losses meaningfully reduce average profit.
- Normal order profit: $14
- Orders: 100
- Return rate: 4 percent
- Loss per return: $32
Lesson
Return rate should be priced into categories with sizing, fragility, compatibility, or buyer-expectation risk.
What to calculate
Model return rate before scaling a category.
Why this page is here
This page adds context around RotoCurve calculators so the site is useful beyond one-off tools. It explains the decision, lists assumptions to verify, and links readers to practical calculators or templates.
The content avoids promises, official-policy claims, and personalized professional guidance. Use it as a planning framework and verify important details with the source that controls the fee, rule, contract, or obligation.