How to Check the Average Return Rate of Amazon Categories

When faced with the problem of low product conversion rate, many sellers may feel confused. However, without referring to the conversion rate data of categories or competitors, the analysis of their own product conversion rate and return rate will appear incomplete.

Step 1: Log in to Amazon Seller Central and select [Product Selection Compass] in the [Growth] option.

In addition to the return rate, we can also see the approximate return reasons, product performance, page views, search-to-purchase ratio, number of ASINs, advertising expenditures, number of sellers, number of new brands, and number of new ASINs for this category.

Step 1: Open SellerSprite - Product - Select Market

(Photo source | Seller Elf)

(Photo source | Seller Elf)

Then click [Filter Market]

(Photo source | Seller Elf)

Step 3: Scroll down the page to see the [ Average Return Rate for the Same Category ], which is the average return rate.

(Photo source | Seller Elf)

The return rate data of SellerSprite is actually derived from the product selection guide in the Amazon backend. The data of SellerSprite is for the last 6 months , while the data of Amazon backend is for 12 months by default . Therefore, there will be slight differences in the average return rates obtained by the two methods.

The role of average return rate by category

1. It can measure your current return rate. If you don't know the average level, you don't have a reference and you don't know what state you are in now, good or bad. With this data, you can make a qualitative analysis and judgment.

If the average score of a class is 80 and you get 60, then you are very bad and your parents may beat you. But if the average score of a class is 50 and you get 60, then you are excellent and your parents will reward you. Different references lead to different results.

Second, the average return rate of a category can be used as one of the pricing references . The return rate of a category can help us estimate the after-sales costs more accurately and take these costs into account in product pricing to ensure reasonable pricing, prevent losses due to returns, and protect profit margins.

How to calculate loss

The goods were returned, but how much money was lost in this process? Will the commission still be deducted? What about delivery? Let's do the math below.

First, some concepts:

There are two possible outcomes when a product is returned:

The first type: sellable. After the customer returns the product to the Amazon warehouse, after inspection, if the packaging and other aspects of the product are found to be intact, it is determined to be sellable again.

The second type: unsalable. After the customer returns the product to the Amazon warehouse, after inspection, if the packaging is damaged or the product has obvious signs of use, it will be judged as unsalable. In this case, the product can only be removed or discarded.

When the product is returned, only 20% of the commission is collected, and the rest is returned. FBA is still charged, and there is no FBA return fee when the product is returned.

Note: The return cost of goods that cannot be sold after return includes: product cost, first-mile fee, FBA delivery fee, return management fee (20% sales commission), removal/disposal order fee, storage cost of each item sold, warehousing configuration fee, etc.

Then the calculation formula is as follows: Available for sale:

If you find this conversion too troublesome, you can also use SellerSprite 's free tool [Profit Calculator] to calculate:

It is worth noting that each return order will incur corresponding fees, increase costs and affect product profits.