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.
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---
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.
