Returns Impact
calculator

Check the impact of returns on your bottom line

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Check the impact of returns on your supply chain metrics

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transform your reverse supply chain

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“Each returned unit has a direct impact on your bottom line, affecting both revenue and profitability”

RETURNS

PROFIT
MARGIN

REVENUE

Returns impact calculator

Check the impact of returns on your bottom line

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  • Business details
  • Assets input
    Of the selected asset type
    Cost of goods sold as percentage of revenue
    %
    Operating profit as percentage of revenue
    %

Actual values

Enter your actual business figures

Logistic Cost [% Of Sale Price]
Inventory ageing [in Months]

Number of months, on average, that inventory remains in the warehouse

Return Recovery [% Of Sales Price]

Average per unit percentage of value recovery from returns

Return percentage [%]

Average percentage of units returned

Actual values

Enter your actual business figures

Logistic Cost [% Of Sale Price]
%
Inventory ageing [in Months]

Number of months, on average, that inventory remains in the warehouse

Return Recovery [% Of Sales Price]

Average per unit percentage of value recovery from returns

%
Return percentage [%]

Average percentage of units returned

%

Targeted/desired values

Enter your desired value and see how output changes

Logistic Cost [% Of Sale Price]
%
Inventory ageing [in Months]

Number of months, on average, that inventory remains in the warehouse

Return Recovery [% Of Sales Price]

Average per unit percentage of value recovery from returns

%
Return percentage [%]

Average percentage of units returned

%

Result

Hello ,

Thank you for taking this returns journey assessment and impact test, here’s your result based on the actual figures and the desired/targeted figures inputted by you.

Key observations

Factors such as logistics costs, inventory aging, returns recovery percentage, and recovery amounts directly influence the overall cost of returns. Optimizing these variables can significantly impact costs, revenue, and profitability. By fine-tuning your input values within your supply chain goals (desired values), you can achieve the following results.

  • You can reduce the cost of return/unit by 33%
  • Every single returned unit eats away the profit generated by multiple fresh units, the number of fresh sales to be made to recover the cost of one returned unit is 7 and can be reduced to 6
  • Your returns have a negative impact on your sales revenue, your returns cost accounts for 3% of your sales revenue and can be reduced to 0.5%
  • Your returns impact your operating profit amounting to 14% of your operating profit and this can be reduced to 11%.
  • By optimizing your returns and the cost associated with them, you can unlock opportunities like a reduction in returns cost by 33%[3,235 ₹], an increase in operating profits by 7% and an increase in annual profit by 16.4.

Reduction in Returns Cost

Increase in Operating Profit

Returns Cost Returns Cost Actual result Actual result
Targeted/desired result
Targeted/
desired results
Returns Impact Returns Impact
Opportunity Opportunity