Mass returns: the hidden cost of discounts
Photo: Avila Ops Tecnologia
A return costs outbound shipping, return shipping, a payment fee the processor may not refund, someone’s time inspecting the product, and a product returning to inventory in December, often without its original packaging. On a R$ 120 order with a 30% discount, that easily exceeds R$ 50. With a 10% return rate in a 300-order campaign, that means 30 orders and over R$ 1,500 missing from every spreadsheet.
Mass returns appear between the second and third weeks after Black Friday, when packages have arrived and the seven-day withdrawal period is running. They are the bill discounts send afterward.
Why do large discounts generate more returns?
Because they attract people who had not decided to buy. Someone wanting the product buys with or without a discount. Someone seeing 40% off and thinking “at this price, it is worth trying” tries it, dislikes it and returns it. The larger the discount, the larger that second group.
Other factors worsen it: photos and descriptions promising more than the product delivers, clothing and footwear sizes without a measurement chart, and delivery missing an important occasion such as a birthday. In all three cases, customers open the package already deciding to return it.
What does a return cost, line by line?
| Item | Amount on a R$ 120 order | Note |
|---|---|---|
| Outbound shipping | R$ 22 | Already paid, cannot be recovered |
| Return shipping | R$ 22 | Store pays for withdrawal returns |
| Payment fee | R$ 4 | Check whether the processor returns it with the refund |
| Inspection and restocking time | R$ 8 | 15 minutes of someone’s time |
| Packaging and label | R$ 3 | Outbound and return |
| Product returned unfit for resale | Varies | Washed clothing, crushed box, broken seal |
| Total without product loss | R$ 59 | Half the order value |
This number belongs in the campaign report, multiplied by the number of returns. The guide to reverse logistics shows the process; here, the calculation matters.
A clothing store selling 250 orders at 35% off received 32 returns. At R$ 55 each, that was R$ 1,760, plus 11 items unfit for resale. Campaign profit appearing to be R$ 4,000 on November 30 ended at R$ 1,400 on December 15.
How can you reduce returns in the next campaign?
Offer a smaller, more honest discount on the right product instead of a large discount on everything. Provide measurement charts and photos showing clothing and shoes on someone whose height is stated. Write descriptions saying what the product is not: “the lamp is not adjustable,” “the fabric is not waterproof.” Leave delivery time to spare so gifts arrive before the occasion.
And offer an exchange instead of a refund the right way. The guide to exchanges instead of refunds explains how to convert some returns into exchanges without pressure. Exchanges still cost shipping but preserve the sale and payment fee.
What should you do with returned items?
Inspect them on arrival day with the order number and classify them: return to inventory, sell as clearly identified discounted seconds, or record a loss. Record the reason in three fixed categories: size, expectations, defect. In January, this list shows what to change on product pages and remove from the next campaign.
Products returned without a record become phantom inventory: on the shelf but absent from the system, and missing during year-end counting.
What to do now
Add up campaign returns to date and multiply by R$ 59, or your actual figure. Put that amount in the report before deciding whether Black Friday was worthwhile. To record every return’s reason and status in the same system as the order, with the calculation appearing automatically, Avila Ops builds the operation: avilaops.com/sistema-para-pequenas-empresas or contact us on WhatsApp: wa.me/5517997811471.
Frequently asked questions
What return rate is normal after Black Friday?
It depends on the product. Clothing and footwear have more returns than household items. Compare with your normal monthly rate: if it doubled during the campaign, the discount attracted people who did not want the product.
Can I charge customers for return shipping?
Not for withdrawal within seven days or for defects. For preference-based exchanges outside the period, the store’s policy applies, provided it was published before the sale.
Does a withdrawal return also refund outbound shipping?
Yes. With withdrawal, customers receive everything they paid, including shipping: Brazil’s Consumer Protection Code refers to amounts paid “on any basis.” That is why outbound shipping counts as a store expense.
Turn what you learned into your next step.
Tell us about your company and what you want to improve. We can explore the right tools, integrations or custom project together.