Refunds and returns
How refunds, restocks, return costs and cancellations change revenue and profit.
A refund changes several lines at once. Marginful splits it so each part lands in the right place.
| Part of the refund | Where it goes |
|---|---|
| Refunded line amounts | Returns (reduces net sales) |
| Refunded shipping | Reduces Shipping charged |
| Refunded tax | Reduces Taxes collected |
| Money refunded beyond lines and shipping, such as a goodwill refund | Returns, as a refund adjustment |
Restocked units
When a refund restocks units (a return or a cancellation), those units come back to inventory. Their cost is taken out of COGS. Units refunded without a restock keep their cost: the product is gone.
Example: you sell 2 units that cost $20 each, and the customer returns 1 with a restock. COGS for the line is $20, not $40.
Return costs
Each refund that restocks at least one returned unit counts as one return. Marginful then adds:
- Return shipping per return, from Settings → Store & tax.
- Restocking cost per returned unit, from Settings → Store & tax.
- A 3PL's per-return fee, when a rate card is set in Logistics.
Payment fees on refunds
Real fees from a connected payment provider are already net of fees returned on refunds. For rule-based fees, see Payment fees.
Cancelled orders
An order that was cancelled, never fulfilled and fully refunded is excluded from every figure. A cancelled order that was never shipped carries no shipping, handling, fulfillment or packaging cost.
Was this page helpful?