# Returns rate

> Units or orders returned as a share of units or orders sold, in a period long enough for the returns to arrive.

Source: https://barkingcat.ai/terms-of-trade/returns-rate/

## Terms of Trade · Edition 2: The trading pack

Definition

Units or orders returned as a share of units or orders sold, in a period long enough for the returns to arrive. Highest in fashion, where fit cannot be tried before the parcel arrives; the revenue figure a board sees is often net of it and rarely labelled as such.

Field note

Returns rate is a measure of how accurate your photography is.

Board question

Is the revenue in this pack gross or net of returns, and what is the rate by category?

Applied through

[The Review](https://barkingcat.ai/review/) walks the product page, the parcel and the return as a customer does; [Commercial Discipline](https://barkingcat.ai/the-cats-whiskers/commercial-discipline/) in the Cat’s Whiskers puts the return cost where it belongs, inside the contribution margin.

Related terms
- [Contribution margin](https://barkingcat.ai/terms-of-trade/contribution-margin/)
- [Conversion rate](https://barkingcat.ai/terms-of-trade/conversion-rate/)
- [Cost to serve](https://barkingcat.ai/terms-of-trade/cost-to-serve/)
- [Average order value](https://barkingcat.ai/terms-of-trade/average-order-value/)

## Contact

steve@barkingcat.ai

Barking Cat Advisory Limited. Registered in England and Wales, company number 17338003.