Refund guide
How refund rate changes ecommerce profit and ROAS targets.
Refunds reduce the contribution margin available for ads. Even a small refund rate can change CPA room when product margin is already tight.
Why returns are more than lost revenue
A refund can also create payment fee loss, support time, reverse logistics, packaging loss, inventory handling, and discounting risk. SellMira models refund impact as a practical estimate, not a final accounting figure.
Simple way to think about it
Higher refund rate reduces contribution margin. Lower contribution margin reduces the CPA you can afford. Lower CPA room usually means you need stronger ROAS before scaling.
What to review before scaling
- Refund rate by SKU, not only store average.
- Refund reason patterns such as sizing, delivery time, quality, or product-page mismatch.
- Whether ad campaigns are pushing products with different return behavior.
- How refunds affect break-even CPA and break-even ROAS after shipping and fees.
Estimate refund impact in your report
Use the ROAS calculator to include refund rate beside costs, fees, shipping, and current ad performance.