Returns & Damage Playbook for Marketplace Sellers
A practical method to quantify return leakage and protect margin across SKUs.
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.