The percentage of gross revenue that was refunded to customers.
| Metric | Definition |
|---|
| Refund Amount | Total dollar value refunded to customers |
| Gross Revenue | Revenue before discounts and refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify |
| Aggregation | Ratio |
Example
Your store generated $125,000 in gross revenue with $3,750 in refunds last month:
| Month | Gross Revenue | Refunds | Refund Net Rate |
|---|
| January | $125,000 | $3,750 | 3.0% |
| February | $118,000 | $4,720 | 4.0% |
| March | $132,000 | $2,640 | 2.0% |
How It Works
Refund Net Rate measures revenue leakage from refunds as a percentage of gross revenue. Unlike Refund %, which counts the number of refunded orders, this metric shows the actual dollar impact. A 5% refund net rate means $5 of every $100 in gross revenue is returned.
When to Use
| Scenario | Action |
|---|
| Monitor product quality | Spikes indicate sizing, quality, or expectation issues |
| Benchmark fulfillment | Compare rates across product lines or suppliers |
| Calculate true margins | Factor refund leakage into profitability models |
| Evaluate promotions | High refunds after sales may signal buyer’s remorse |
| Metric | Relationship |
|---|
| Refund Amount | Numerator—total dollars refunded |
| Gross Revenue | Denominator—revenue before adjustments |
| Refund % | Count-based rate (orders with refunds ÷ total orders) |
| Refund Per Order | Average refund amount per order |
| Net Revenue | Gross Revenue − Refunds − Discounts |
