Returns & Damage Playbook for Marketplace Sellers

Calculate return leakage per SKU

Return leakage is the money you lose per order due to returns and RTO.

Use return rate × loss per return to estimate a true per-order leakage cost.

Separate return vs damage loss

Damage-related loss often behaves differently than returns.

Track each category to prioritize operational fixes.

• Return shipping loss
• Damage handling and restocking
• Unsellable inventory

Protect margin with levers

Reduce leakage by improving packaging, QA, and delivery promises.

When leakage is unavoidable, price in a buffer.