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Free tool · True Cost of Returns

What do returns really cost you?

Most businesses count the refund and the courier. The real cost also sits in handling, customer service, markdown on items that come back too late and stock that has to be written off. Enter your figures and see the full cost, per return and as a share of sales.

Orders and returns

The example figures are illustrative. Replace them with your own.

UK online non-food returns were forecast at 19.5% in 2025; clothing runs higher, at about 23%.
Used to value written-off stock at cost.
Cost of each return
Courier or carrier cost for the return leg, if you pay it.
Receiving, checking, repacking and putting away.
Contacts, refunds and payment fees not recovered.
What happens to returned items

Shares of returned items, by value. Anything not allocated is treated as restocked as new.

Emissions (optional)
From the customer to your returns site.
A diesel delivery van emits 0.257 kg CO2e per km (UK Government 2026 factors). Shared across a typical round of about 15 parcels, that is roughly 0.016 kg per parcel per km; change it if you know your own.

This is an estimate from the figures you enter. Nothing you type is sent anywhere unless you choose to send it with the form.

Your results

Enter orders, average order value and return rate to see the cost of returns.

Returns
Total cost of returns
Cost per return
As a share of sales
Return transport emissions

Want to bring the cost down?

Send us your results and we will tell you which line we would look at first.

Your results are sent with the form so we can reply properly. We use these details only for that. See our privacy notice.

How it works

The sums, in plain sight.

Returns = orders x return rate. Transport, handling and customer service are counted per return. Markdown is the value of items sold below full price times the average markdown. Write-off is the cost value of items that cannot be sold.

The refund itself is not a cost: the customer gets their money back and you get the item back. What costs you is everything that happens to the item and the margin you lose on it.

Emissions use a per-parcel, per-kilometre factor for van delivery, so they are a rough guide for the return leg only.

Sources

Turn returns back into value.

Second Tide grades, routes and resells returned stock so less of it is lost.

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