Return-to-Sales Ratio
Returns as a % of sales — by product or overall
A 1% return rate is normal. A 10% return rate is a problem. Wiseventory surfaces this ratio so you can act.
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Electronics
Reports
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What do you get out of it?
You see which products come back often enough to cancel out what they earn. A line that sells well and returns often is not the winner the sales report makes it look.
How does it work?
- 1
Returns measured against sales
The ratio compares returned value to sold value, so a product is judged on its return rate rather than its raw return count. Ten returns on a thousand sales is a different story from ten on twenty.
- 2
Per product, not just overall
A shop-wide figure hides the problem. The ratio per line is what points at the specific item worth investigating.
- 3
Value as well as volume
Returned value is reported alongside the ratio, so you know what the returns are costing rather than only how often they happen.
- 4
Over any period
Read a quarter to smooth out noise, or a single month after changing supplier.
What situations does it handle?
A supplier quality problem
A ratio that jumps on one line after a delivery is the clearest early signal you will get. Check the batch it came from.
A product customers misunderstand
Consistently high returns on something that is not defective usually means the packaging or the shelf label is promising the wrong thing.
A new line with few sales
Small samples produce dramatic ratios. Give it volume before acting on it.
How do you get more out of it?
- Review the ratio monthly alongside top sellers — reading them together is what tells you which strong seller is actually weak.
- When a ratio spikes, look at the batch before blaming the product; batch tracking exists for exactly this.
- Take the worst offender to your supplier with the number in hand. It is a very different conversation from a complaint.
Common questions
Which products get returned most?
The return-to-sales ratio ranks products by how much of what you sold came back, reported as a ratio and as returned value, so a genuine problem stands out from ordinary volume.
Why use a ratio rather than a return count?
Because a high-volume product will always have more returns in absolute terms. Measuring returns against sales shows which line is actually failing.
Can returns point to a supplier problem?
Often, yes. A ratio that rises sharply on one line after a delivery is worth checking against the batch it came from.
Included free in every plan
Return-to-Sales Ratio isn't an upgrade or paid add-on. It sits inside Wiseventory alongside GST billing, inventory, POS, GSTR-1 filing and the rest. One simple price for everything.
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