Returns profit bridge
01

Sale: price and discount

02

Fulfil: freight, platform, packaging

03

Return: request, receipt, refund

04

Loss: damage and markdown

05

Net: retained revenue less cost

Separate GMV, net sales, and net profit

Order value measures demand but not what the business retains. Refunds, platform charges, two-way freight, and inventory loss arrive later.

Show order-time performance beside mature net economics instead of judging new orders as final profit.

Connect service events at order-line grain

An order can have partial returns, exchanges, and several refunds. Use order line, item, quantity, amount, and event time.

Allocate whole-order discounts once through a governed method rather than subtracting them from every line.

Use maturity windows

Recent sales have not completed their return window. Compare receipt cohorts at aligned 7-, 15-, or 30-day maturity.

Platforms and categories may need different windows based on policy and observed timing.

Turn rates into operational leads

Segment by item, size, supplier, channel, campaign, and reason while retaining sample size, margin, and loss.

Reason codes and free text require validation; association does not prove product quality caused the return.

Accept with difficult service cases

Reconcile partial returns, exchanges, multiple refunds, rejected delivery, vouchers, cross-month events, and damaged stock line by line.

BI0 can be evaluated for ecommerce data preparation and analysis; service connectors, allocation, and loss rules require confirmation.

Public references

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