What is refund rate?
Refund rate is the share of orders that are refunded (full or partial). Formula: Refund rate % = (Refunded orders ÷ Total orders) × 100. Lower is better for margin and customer satisfaction.
Enter your refund rate below to compare to benchmarks.
Refund Rate Benchmark
Enter your refund rate (%). We'll compare it to ecommerce benchmarks. Lower is better. Average is around 10%; good is 5% or lower; excellent is 2% or lower.
Good
Your rate (5%) is better than average (~10%). There's room to improve toward excellent (2% or lower).
- Review return reasons and fix product or listing issues.
- Improve sizing/description accuracy and set clear expectations.
- Track refund rate by product or cohort to find root causes.
For more metrics and benchmarks see our KPI Library & Benchmarks.
Why refund rate matters
High refund rates hurt margin and signal product, sizing, or expectation issues. Use our KPI Library & Benchmarks for more metrics and Conversion Rate Benchmark Checker for funnel health.
FAQ
- What is refund rate?
- Refund rate is the percentage of orders that are refunded (full or partial). Refund rate % = (Refunded orders ÷ Total orders) × 100. Lower is better.
- What is a good refund rate for ecommerce?
- Benchmarks vary by category. Many brands aim for under 5–10%. Under 2–3% is often excellent. Use our KPI Library for industry-specific benchmarks.
- Is this refund rate benchmark tool free?
- Yes. Free with no signup. For more KPIs and benchmarks see KPI Library & Benchmarks; for conversion see Conversion Rate Benchmark Checker.