Calculate return leakage per SKU
Return leakage is the money you lose per order due to returns and RTO.
Use return rate × loss per return to estimate a true per-order leakage cost.
Separate return vs damage loss
Damage-related loss often behaves differently than returns.
Track each category to prioritize operational fixes.
- Return shipping loss
- Damage handling and restocking
- Unsellable inventory
Protect margin with levers
Reduce leakage by improving packaging, QA, and delivery promises.
When leakage is unavoidable, price in a buffer.
Next step
Apply this guide using our calculator tools.