How to calculate Product Return Rate

Formula

Return rate = items returned ÷ items sold × 100

SQL query

This example assumes: order_items(order_id, product_id, quantity), returns(order_id, product_id, quantity). It is written in PostgreSQL syntax; date functions differ slightly in MySQL, BigQuery and SQLite, and your column names will differ from these.

SELECT i.product_id,
       SUM(i.quantity)                          AS sold,
       COALESCE(SUM(r.quantity), 0)             AS returned,
       COALESCE(SUM(r.quantity), 0) * 100.0 / NULLIF(SUM(i.quantity), 0) AS return_rate_pct
FROM order_items i
LEFT JOIN returns r ON r.order_id = i.order_id AND r.product_id = i.product_id
GROUP BY i.product_id
ORDER BY return_rate_pct DESC;

Common mistakes that make Product Return Rate wrong

• If returns are stored as negative orders, subtracting them and counting them separately double-counts.
• Returns arrive weeks after the sale; recent months look better than they are.
• Compute by units, not only by value, when prices differ widely.

Ask for Product Return Rate in plain English

Instead of writing the query yourself, you can type the question. SchemaChat turns it into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. It does not replace your judgement about the definition: check that the query matches the formula your business uses.

• Which products have the highest return rate?
• What share of revenue is returned, by category?