What is return rate and how to set up return reason tracking?
Understanding Return Rate Calculation
What is Return Rate?
Return Rate measures the percentage of orders that get returned due to size-related issues. This metric helps you understand how effectively your Size Chart is preventing sizing problems.
Formula:
Return Rate = (Total return orders due to wrong size from SC users / Total orders from SC users) × 100%
Where:
- SC users = Customers who viewed/clicked your Size Chart before purchasing
- Return orders due to wrong size = Orders returned with size-related reasons (detected by keywords)
- Total orders from SC users = All orders placed by customers who used Size Chart
How we calculate the monthly return rate
When calculating monthly return rates, we track returns back to the original order month, not the return month
Example:
- The customer places an order in May
- The customer returns the item in June due to wrong size
- This return will count toward May’s return rate (not June’s)
This approach gives us accurate insights into how well your Size Chart performed for customers in each specific month.
Key Point: Return rate for previous months may change as new returns are processed
Example:
- May 31st: May return rate shows 3.2% (16 returns out of 500 SC orders)
- June 15th: Another SC customer returns a May order due to wrong size
- Result: May return rate updates to 3.4% (17 returns out of 500 SC orders)
Why Accurate Return Tracking Matters
To measure the effectiveness of your Size Chart, our app needs to identify which returns are related to sizing issues. This data helps you:
- Identify Problem Products: Spot which items need better size information
- Optimize Size Charts: Improve charts based on actual return data
How Our App Detects Size-Related Returns
Our Size Chart Analytics automatically identifies size-related returns by scanning the return/refund reason field that you enter for specific keywords.
Keyword Detection Method
The app scans return reasons for these size-related keywords:
- Size
How to Set Up Return Reason Tracking
⚠️ Important: Accurate return reason entry directly impacts your Size Chart Analytics results. Please ensure your team follows these guidelines consistently to get reliable data insights.
Configure Return/Refund Reasons in Shopify
A. Return Process
When processing returns through Orders > [Order Number] > Return:
Navigate to: Orders > Select order > Return > Select return items > Reason for return, please pick the size-related reasons from dropdown selection as: Size was too small or Size was too large or explain the specific one if selecting “Other”
Important note: If you select ‘Other’, please ensure your reason includes the word ‘size’ to indicate a size-related issue.
B. Refund process
Navigate to: Orders > Select order > Refund > Reason for refund
Please make sure to include the word “size” in your reason.
Additional Sources to Help You Identify Size-Related Returns
While the app only detects keywords from your return reason entries, you should pay attention to these sources when determining if a return is size-related:
Customer Comments & Messages
Look for size-related language in customer communications:
Size-Related Phrases to Watch For:
- “runs bigger than expected”
- “size chart was inaccurate”
- “ordered medium but need large”
- “doesn’t fit as shown”
- “sizing is off”, etc, …
Action: When you see these comments, enter a specific size-related return reason.
Reorder Patterns
Monitor customers who:
- Return an item
- Immediately reorder the same product in a different size
This pattern strongly indicates a size-related return
Action: Even if the original return reason was vague, like “not satisfied,” update it to “Size - customer reordered in different size”
Customer Service Conversations
Pay attention to support tickets about:
- Size exchanges
- Fit concerns
- Size chart questions
- Sizing complaints
Action: When processing returns from these conversations, make sure to enter specific size-related return reasons so the app can properly categorize them