Packaging & Logistics worked example

Return Logistics Cost with returned orders in the period of 380 returns: a worked example

What does the result look like when returned orders in the period reaches 380 returns? The full calculation is worked below with real intermediate numbers. Use it to budget returns, price restocking fees, and compare the cost of returns against keep it or refund policies.

The inputs for this scenario

  • Returned orders in the period: 380 returns (raised for this scenario; the documented default is 150)
  • Reverse logistics cost per return: 8.5 $ / return (unchanged)
  • Restocking and inspection cost: 300 $ (unchanged)
  • Disposition and refurbishment cost: 200 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total return logistics cost = returned orders × reverse logistics cost per return + restocking and inspection cost + disposition and refurbishment cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 3,730 $ for total return logistics cost, the number this scenario is built around.
  • At this operating point the engine returns 9.82 $ / return for cost per return.
  • At this operating point the engine returns 3,230 $ for reverse logistics cost.
  • At this operating point the engine returns 500 $ for restocking and disposition cost.

How this compares with the baseline

  • Against the tool's baseline example, where returned orders in the period sits at 150 returns and the headline result is 1,775 $, this scenario comes in 110% above the baseline at 3,730 $.
  • A figure at this level is achievable when returned orders in the period is genuinely sustained, not just peaked for a shift. It assumes a uniform per-return freight rate — high-value or oversized returns can cost several times the average, so segment those out for accuracy.

Results at a glance

  • Total return logistics cost: 3,730 $ (headline result)
  • Cost per return: 9.82 $ / return
  • Reverse logistics cost: 3,230 $
  • Restocking and disposition cost: 500 $

Run it with your numbers

  • Every input above is editable in the live Return Logistics Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.