E-commerce Return Costs: Calculation, Hidden Costs, and Impact on Profit Margin

The cost of e-commerce returns refers to all costs incurred when a product is returned after a sale: return shipping, logistics processing, restocking, repackaging, administrative fees, holding costs, and any loss in value. This should not be confused with the amount refunded to the customer. A refund reduces revenue, whereas the e-commerce return cost measures […]