Shopify Metric
Revenue
Refund Rate = Total Refunded Amount in Period / Gross Sales in Period x 100
Refund Rate measures the proportion of your Shopify sales that gets returned to customers as refunds within a given period. It draws on the refund records attached to Shopify orders, so it captures both full order refunds and partial line-item adjustments. Tracked as a percentage of gross sales, it shows how much of your revenue does not stick.
Full guide: definition, formula, and benchmarksShopifyRevenueRefund Rate
Refund Rate measures the proportion of your Shopify sales that gets returned to customers as refunds within a given period. It draws on the refund records attached to Shopify orders, so it captures both full order refunds and partial line-item adjustments. Tracked as a percentage of gross sales, it shows how much of your revenue does not stick.
How to calculate refund rate
Why refund rate matters for Shopify users
Every refund in Shopify is revenue you recognised and then gave back, often alongside shipping costs, payment processing fees and restocking effort that you do not recover. A rising Refund Rate is an early warning that a product, a variant or a fulfilment route is not matching what customers expected at checkout.
Watching the trend lets you separate healthy returns from systemic problems. A spike tied to a single SKU points to a quality or sizing issue, while a broad rise across the catalogue can signal description accuracy, packaging damage or a delivery partner letting orders down.
Understand and act on refund rate with KPI Tree
Sync your Shopify orders and refund records into your warehouse and compute Refund Rate in KPI Tree, segmenting by product, variant, collection and fulfilment location so you can see exactly where refunds concentrate. Place it in a metric tree alongside average order value and cart conversion rate so the team can see how returns drag on the revenue you work hard to win.
Assign RACI ownership so a merchandising or operations lead is accountable for the number, with support owners on product quality and customer service. Set a weekly review cadence during peak trading and monthly otherwise, and trigger a review whenever the rate crosses an agreed threshold.
Get started with your Shopify data
MCPPull metrics from Shopify directly through the Model Context Protocol.
Connect your existing warehouse where Shopify data already lands.
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Related Shopify metrics
Average Order Value
E-commerceMetric Definition
AOV = Total Revenue / Number of Orders
Average order value (AOV) is the mean monetary value of each completed order. It captures the combined effect of pricing, bundling, upselling, and promotional strategies on basket size.
Cart Conversion Rate
E-commerceMetric Definition
Cart Conversion Rate = (Completed Orders / Sessions with Add-to-Cart) × 100
Cart conversion rate is the percentage of visitors who add items to their cart and subsequently complete a purchase. It isolates the effectiveness of the post-browse, pre-checkout stage of the buying journey.
Checkout Conversion Rate
E-commerceMetric Definition
Checkout Conversion Rate = (Completed Orders / Checkout Starts) × 100
Checkout conversion rate is the percentage of visitors who begin the checkout process and successfully complete a purchase. It isolates conversion performance at the critical final stage of the buying journey.
Average Product Rating
E-commerceMetric Definition
Average Product Rating = Sum of All Ratings / Number of Reviews
Average product rating is the mean star rating across all customer reviews for a given product or your entire catalogue. It serves as a proxy for customer satisfaction and product quality perception.
Explore refund rate across integrations
All Shopify metrics
Average Order ValueCart Abandonment RateCheckout Conversion RateCustomer Acquisition CostCustomer Lifetime ValueCustomer Repeat RateDiscount Usage AnalysisFulfilment SpeedGross Merchandise VolumeInventory TurnoverMarketing Channel AttributionNew vs Returning CustomersOrder FrequencyOrders Per CustomerProduct Performance AnalysisProduct Return RateProfit Margin by ProductRevenue by ChannelRevenue by GeographyRevenue Per VisitorSessions to Purchase RatioShipping Cost AnalysisStore Conversion RateTop Selling Products AnalysisTraffic Source PerformanceAbandoned Cart Recovery RateAverage Product RatingCart Conversion RateCheckout Abandonment RateCollection Performance AnalysisCustomer Cohort AnalysisCustomer Segmentation AnalysisPayment Method DistributionRevenue Growth RateSeasonal Trend AnalysisCohort AnalysisConversion RateCross Sell AnalysisCustomer Churn RateDiscount EffectivenessDraft Order Conversion RateFulfillment Time AnalysisGift Card Utilization RateInventory Turnover RateLocation Based Sales AnalysisPurchase Funnel AnalysisRepeat Purchase RateRevenue Per CustomerRFM SegmentationStock Out FrequencyTransaction Success RateVariant Performance AnalysisEmpower your team to understand and act on Shopify data
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