Refund Gross Rate shows what portion of your gross revenue is being returned—a key indicator of product satisfaction and sizing accuracy.
| Metric | Definition |
|---|
| Refund Amount | Total dollar value of all refunds issued |
| Gross Revenue | Total revenue before discounts and refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify |
| Aggregation | Ratio |
Example
Your store generated $125,000 in gross revenue in January with $8,750 in total refunds.
| Metric | Value | Calculation |
|---|
| Gross Revenue | $125,000 | — |
| Refund Amount | $8,750 | — |
| Refund Gross Rate | 7.0% | $8,750 ÷ $125,000 × 100 |
How It Works
This metric divides total refund dollars by gross revenue, giving you the percentage of sales value being returned. Unlike Refund %, which counts refunded orders, this rate measures the financial impact of returns on your top-line revenue.
When to Use
| Scenario | Action |
|---|
| Benchmarking return rates | Compare against industry average (8-10% for apparel) |
| Evaluating product quality | Investigate products with rates above 10% |
| Assessing sizing/fit issues | High rates often signal sizing guide problems |
| Measuring seasonal patterns | Track holiday vs. regular period refund rates |
| Metric | Relationship |
|---|
| Refund Amount | Dollar value used in numerator |
| Gross Revenue | Denominator — revenue before adjustments |
| Refund Net Rate | Same calculation against net revenue |
| Discount % | Another adjustment rate metric |
