E-commerce · Economics
Refund and return-adjusted revenue
Published · Reviewed by The Diligence Standard Team · Updated
Revenue should be evaluated after expected returns, refunds, concessions and cancellations by order cohort.
Records to reconcile
- Order cohort export
- Return and refund timing
- Reason and product codes
Warning signal
Recent revenue is compared with incomplete trailing return experience.
Transaction impact
Trailing net sales and profit may be inflated.
Response
Apply matured cohort rates and isolate structural return problems.