How to read the result
Cost per return = refund + return shipping + handling − recovery. The total multiplies that cost by units returned. Return rate divides units returned by units shipped. Rank several SKUs by total estimated impact, then check whether the return reasons point to a fix you can test.
This comparison holds original outbound costs constant. Use a separate analysis for exchanges, returnless refunds, or fee credits. Verify actual costs before acting. A negative result means recovery exceeded the three cost inputs, so check the accounting assumptions.
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