KnowledgeRefund Rate
Refund rate · The share of purchases or sales value refunded to customers.
Understand Refund rate in context.
Simply explained explanation
The share of purchases or sales value refunded to customers.
Professional explanation
Return/refund incidence measured by order count or monetary value with a defined cohort and timing window.
Analytical explanation
Monitor by product, promo, channel and cohort; unusually high refund rates can erase apparently attractive ad performance.
Technical explanation
Example order-based rate = refunded orders / eligible orders; a value-based refund rate uses refunded value / sold value. Partial refunds and lags require explicit rules.
Four complementary explanations — choose your level. Technical definitions are platform-specific where noted.
↗ How to use it
Use a matured order cohort.
⚠ Common interpretation mistake
Order-based and value-based rates answer different questions.
Metric calculator
Adjust the inputs to see how the metric is calculated.