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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryRetail Media & CommerceReturn Rate

Retail Media & Commerce

Return Rate

The percentage of units or orders sold that customers send back, a major cost driver in categories like apparel.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Return rate is the percentage of units or orders sold that customers send back. It is calculated by dividing returned items by items sold over a period. High return rates drive significant shipping, processing, and inventory costs, especially in categories such as apparel, and can signal problems with sizing, product quality, or descriptions.