Purpose
This chart highlights the financial effect of returns by comparing the totals of sales/purchases amounts against the total amount of returns. It can provide insights as you assess how returns reduce profitability.
Key Metrics
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$ Sold vs. $ Returned (Stocked) – Total sales value vs. returned sales value.
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$ Purchased vs. $ Returned (Purchased) – Total purchase value vs. returned purchase value.
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% Return vs. Ship Co Avg – Return percentage compared against industry benchmarks.
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Trend Lines – Show whether return percentages are improving or worsening over time.
Insights to Look For
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Revenue leaks: On the sales side, higher return amounts mean a direct reduction in top-line revenue.
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Cost recovery: On the purchase side, high return amounts to vendors may strain supplier relationships or increase administrative overhead.
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Benchmarking vs. industry: The Ship Co average provides context for returns, highlightinghting operational inefficiencies or vendor quality issues.
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Month-to-month shifts: Tracking whether dollar returns rise faster than sales/purchases helps identify hidden risks even when sales look healthy.