RMA: Returns Make Another (Purchase)

When life gives you returns…

Returns offer an opportunity more than refunds and reverse logistics.

Although 9.4% of GMV is returned, a portion of that revenue can be recouped. Between retained revenue (exchanges) and the upsells on exchanges, net sales rises to 95% of original GMV.

Taken together, the direct opportunity of avoiding a pure refund reaches 4.4%. And, as with all ecommerce investments, uncovering real revenue opportunity north of 1% is an initiative worth exploring.

And, across verticals, the revenue recapture rate varies widely. While home goods and jewelry don't leak returns revenue, swimwear is all wet, with a high return rate and a low returns recapture rate.