cost-the-returns

name	cost-the-returns
description	Read return rate and its full cost as a contribution-margin line, so a high-return category isn't mistaken for a winner. Reach for this on a margin question.

Skill: Cost the returns

Returns hit contribution margin directly, not customer service.

Step 1 — Measure return rate by category

Returns ÷ orders, by product/category (§3 #6).

Step 2 — Cost the return

Restocking, return shipping, and write-off per return.

Step 3 — Net to margin

Subtract return cost from category contribution margin.

Step 4 — Act on the category

Fix sizing/expectations or reprice the high-return category.

Output

A return-rate read by category, the full return cost, net margin, and a category action.