The ReturnLogic IQ Dashboard provides an overview of sales and returns metrics based on the date range provided by the date selector. The following is a brief explanation of how the values found in this dashboard are calculated and discusses the cause of potential discrepancies between Shopify and ReturnLogic.
The ReturnLogic IQ Metrics Overview dashboard is a powerful tool that illustrates your companies returns performance at a glance. Included in this dashboard are Rolling 12 Months Sales Value, Rolling 12 Months Return Value, Current Period Sales Value, and Current Period Return Value as well as the calculated returns rate for both current and RTM periods.
The metrics values are calculated as follows:
RTM / Current Period Sales Value – This value is calculated by summing the subtotal price of all orders for the selected period less any item discounts and order discounts. It can be expressed as
SUM(order_subtotal) – (SUM(item_discounts) + SUM(order_discounts))
RTM / Current Period Return Value – This value is calculated by summing the total value of the submitted returns for all return types for the selected period less any item discounts and calculated per item order discounts. This includes refunds, store credit and exchanges. It can be expressed as
SUM(refund_subtotal) – (SUM(refund_discounts) + SUM(refund_order_item_discounts)) +
SUM(credit_subtotal) – (SUM(credit_discounts) + SUM(credit_order_item_discounts)) +
SUM(exchange_subtotal) – (SUM(exchange _discounts) + SUM(exchange _order_item_discounts))
RTM / Current Return Rate – This value is calculated by dividing the RTM / Current Period Order Value by the RTM / Current Period Return Value and multiplying by 100. It can be expressed as
(RTM / Current Period Sales Value / RTM / Current Period Sales Value) * 100
RTM / Current Period 3 Month Return Lost Value – This value is calculated by taking the total sales value for the last 3 months and multiplying by the RTM / Current Return Rate. It is intended to predict the potential lost revenue over the next 3 months if the given return rate remains stable. It can be calculated as
SUM(order_subtotal_3_months ) – (SUM(item_discounts3_months) + SUM(order_item_discounts3_months)) * RTM / Current Return Rate
The metrics values displayed in the ReturnLogic IQ Metrics Overview dashboard will not align with those values found in the Shopify analytics page. This is due to a difference in the methodologies used by ReturnLogic versus those used by Shopify.
ReturnLogic does not include sales tax and shipping into the sales total as a function of the return rate calculation. Including those values would skew the return rate as they are not included when determining the price of the items being returned. Including those values would generate a lower return rate than what the customer is actually experiencing and provide incorrect results. ReturnLogic calculates all returns from the month of purchase, not the month it was returned. Shopify calculates returns in the month the return was processed.
An example is detailed below.
In this case we are examining the period of a single day, Feb 14, 2018. Shopify illustrates that we have $5004.00 in total sales for the day.
Shopify calculates this by summing the subtotal price of all orders, shipping and taxes for the selected period less any item discounts and order discounts. It can be expressed as
(SUM(order_subtotal) + SUM(order_taxes) + SUM(order_shipping) ) – (SUM(item_discounts) + SUM(order_discounts))
The ReturnLogic platform does not include the shipping and taxes when calculating the sales value. An example of the differences for the selected time period can be seen below where the order_subtotal_price is equal to the value displayed by ReturnLogic while the order_total_price is displayed by Shopify.