Return Reserve

Return reserve is an estimate set aside for refunds, returns, damaged items, replacement shipments, and support costs. It helps sellers avoid pricing products as if every order is perfect.

When to increase it

Use a higher reserve for fragile products, apparel, condition-sensitive items, seasonal products, or products with unclear sizing and compatibility.

Where it appears

MarginPilot calculators let you adjust return reserve as a percentage of revenue so you can see how it affects net margin.

Use it in a calculator

After reviewing this term, open the marketplace calculator hub or country calculator hub and test the number with a realistic product scenario.