Refund Risk Predictor

The refund cost on your books is just the beginning. For every refund processed, you're also losing the shipping, handling, payment processing fees, and the customer acquisition cost that brought them to you in the first place.

But here's what most teams miss: refunds rarely happen because of product quality alone. They emerge from a chain of small failures—slow response times, unclear expectations, and rigid policies that frustrate rather than resolve.

40-60% of refund requests could be prevented entirely with faster, more proactive support. The customer who waits three days for a sizing question often gives up and just asks for their money back.

Teams with response times under one hour experience refund rates 35% lower than those with 24-hour windows. And counterintuitively, companies with flexible refund policies see fewer total refunds—because customers feel heard and are more willing to accept alternatives like exchanges or store credit.

The irony is that strict policies meant to reduce losses often backfire. They increase chargebacks, generate negative reviews, and create adversarial support experiences that cost more than the refunds they're trying to prevent.

Understanding your specific refund risk profile reveals the precise levers that reduce unnecessary losses—without damaging customer relationships.