genlook

Return Cost Calculator

Returns cost more than the refund. See what they really cost your store every month and what you could save by reducing them.

$
%
$
$
%
Returns per month125
Lost revenue on unsellable items$3,000
Return shipping$750
Processing and handling$375
Total monthly cost of returns$4,125
Total annual cost of returns$49,500

If you reduced returns by 20%

Monthly savings$825
Yearly savings$9,900

How we calculate this

Returns per month: Your monthly orders multiplied by your return rate.

Total monthly cost: The total adds the revenue lost on the share of items you cannot resell at full price, return shipping, and processing per return.

Annual cost: The annual figure multiplies the monthly total by twelve.

The hidden cost of returns

The refund is only the visible part. Every return also costs you return shipping, inspection and repackaging time, and often the full value of the item when it cannot be resold as new. For online fashion stores, return rates of 20 to 30 percent are common, which means returns quietly consume a large share of margin. Knowing your real number is the first step to fixing it.

How fashion stores reduce returns

  • Show products on real people, not just flat lays and mannequins
  • Let shoppers see how an item looks on them with virtual try-on before they buy
  • Publish clear size charts on every product page
  • Use detailed photos of fabric, fit and texture
  • Collect reviews that mention fit and styling
  • Analyse your return reasons and fix the top ones first

Why upgrade to Virtual Try-On?

1

Let customers see the fit on their own body

2

Boost conversion rates by up to 35%

3

Drastically reduce size-related returns

Install Genlook on Shopify

Free plan available • No credit card required

FAQ

Common Questions

Everything else is in the docs, or ask us directly at hello@genlook.app.

What is a typical return rate for online fashion?
Online fashion stores commonly see return rates between 20 and 30 percent, which is well above the ecommerce average of roughly 17 percent. Bracketing, where shoppers order several options with the intent of returning some, pushes the number even higher in apparel.
What costs should I include beyond shipping?
Count the labor for inspection and repackaging, restocking, customer support time, payment processing fees you do not get back, and the loss on items that cannot be resold at full price. This calculator groups them into processing cost and unsellable inventory so you get a realistic total.
How can I reduce returns without hurting sales?
The biggest lever in fashion is expectation. Most returns happen because the item looked different on the shopper than it did on the product page. Virtual try-on, model photos on different body types, size charts and honest fabric descriptions all close that gap without adding friction to checkout.
How is the estimate calculated?
We multiply your monthly orders by your return rate to get returns per month, then add three costs: revenue lost on the share of items you cannot resell at full price, return shipping, and processing per return. The annual figure is the monthly total multiplied by twelve.
Is my data stored anywhere?
No. The calculator runs entirely in your browser. Nothing you type is uploaded or saved.