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The average refund amount issued per order.

Formula

Refund Per Order = Refund Amount ÷ Orders

Formula Components

MetricDefinition
Refund AmountTotal dollar value of all refunds issued
OrdersTotal number of completed orders
Metadata
TypeCurrency
Data SourceShopify
AggregationRatio

Example

Your store processed 2,450 orders in February with $8,575 in total refunds:
MetricValue
Refund Amount$8,575
Order Count2,450
Refund Per Order$3.50

How It Works

Refund Per Order divides total refund dollars by total orders—not just refunded orders. This gives you the average refund liability per transaction, helping you understand the true cost of returns across your entire order base.

When to Use

ScenarioAction
Tracking return costCompare against Net AOV to understand refund impact on margins
Evaluating product qualityHigher values may signal product issues or unmet expectations
Assessing sizing guidesApparel brands should track this alongside return reasons
Comparing campaignsIdentify traffic sources with higher post-purchase refunds

MetricRelationship
Refund AmountNumerator: total refund dollars
OrdersDenominator: transaction count
Refund %Percentage of orders refunded
Net AOVOrder value after refunds—compare to gauge refund impact
See all Adjustments metrics →