Returns Packaging Cost Calculator

Reverse logistics cost per returned item.

Avg return shipping ($)

Repack time (min)

Inspection time (min)

Labor rate ($/hr)

New packaging cost ($)

Resaleable %

Avg order value ($)

Monthly returns

Tab to move between fields

Processing cost per return ($)

$12.40

≈ 2 cups of coffee

Net loss per return ($)

$25.90

≈ 5 cups of coffee

Processing cost as % of AOV27.6

Shipping portion ($)$8.50

Labor portion ($)$2.40

Monthly processing ($)$1,240.00

Monthly labor hours13.3

Annual processing ($)$14,880.00

Monthly Net Loss2,590

How to Use This Calculator

Enter return rate (%), annual shipment volume, and average product value ($).
Enter return processing cost per unit ($) and restocking rate (%).
Read total annual returns cost ($) and returns cost as a percentage of revenue.
Review the cost breakdown: packaging, labor, restocking, and damage write-offs.
Use results to evaluate investment in returnability-optimized packaging to reduce damage in returns.

How the result changes with Avg return shipping ($)

Avg return shipping ($): Average cost of return shipping (prepaid label or customer-paid).
Repack time (min): Minutes to unbox, inspect packaging, and repack if resaleable.
Inspection time (min): Minutes to inspect the returned item for damage or use.
Labor rate ($/hr): Fully loaded hourly wage for warehouse staff.
New packaging cost ($): Cost of new box/poly bag and materials if repackaging is needed.
Resaleable %: Percentage of returns that can be resold at full value.
Avg order value ($): Average value of returned orders.
Monthly returns: Number of return shipments processed per month.

Processing cost per return ($): Total cost to process one return (shipping + labor + materials).
Net loss per return ($): Net financial loss per return after accounting for recovered resale value.
Processing cost as % of AOV: Return processing cost as a percentage of the average order value.
Shipping portion ($): Return shipping cost per item.
Labor portion ($): Labor cost (repack + inspection) per return.
Monthly processing ($): Total monthly cost to process all returns.
Monthly labor hours: Total labor hours spent on returns per month.
Annual processing ($): Projected annual returns processing cost.

Identify Input Parameters
4 parameters
Avg return shipping ($) = 8.5, Repack time (min) = 5, Inspection time (min) = 3, Labor rate ($/hr) = 18 = 8 input(s) provided
Calculate Processing cost per return
Processing cost per return = avgReturnShipping + totalLaborPerReturn + newPackagingCost
12.4 = $12.4
Calculate Net loss per return
Net loss per return = costPerReturn + avgOrderValue - recoveredValuePerReturn
25.9 = $25.9
Calculate Processing cost as % of AOV
27.6 = 27.6
Calculate Shipping portion
8.5 = $8.5