Return Cost Calculator Methodology
Estimates monthly and annual return burden from return rate, labor time, non-resellable inventory loss, return shipping, and non-refunded fee percentage.
Amazon FBA is active. Other marketplace modules stay marked as planned until audited.
Estimates monthly and annual return burden from return rate, labor time, non-resellable inventory loss, return shipping, and non-refunded fee percentage.
Fee basis: source-state planning estimate; modeled fee basis is under review and not a Seller Central reconciliation. Last source-state review: 2026-06-07.
planning estimate. Planning estimate — fee basis is source-dated and under review, not a Seller Central reconciliation.
Explicitly excluded
- returns processing fee — Excludes Amazon returns processing fees (category- and return-rate-dependent).
Primary source register: Amazon fee schedules · Amazon Revenue Calculator.
Formula
monthly_return_loss = returns_per_month × (labor_cost + inventory_loss + return_shipping + non_refunded_fees)
Includes
- Monthly order volume
- Return rate
- Labor processing time
- Labor cost
- Resellability loss
- Return shipping you cover
- Non-refunded platform/payment fee percentage
Excludes
- Category-specific Amazon Returns Processing Fee unless represented in fee percentage or shipping input
- Fraud and abuse review labor
- Customer support tickets
- Exchange uplift
- Restocking-fee policy effects
2026 fee-category audit
| Fee component | Status |
|---|---|
| Returns Processing Fee | modeled in return cost planning |
| Coupons and promotional discounts | explicitly excluded unless user enters |
| Sales tax / VAT pass-through math | explicitly excluded |
Diagnostic output: Margin status, largest return-cost component, cost per return, percentage of revenue consumed by returns, and sensitivity to return-rate change.
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