The three legs of an exchange for your inputs — the return shipment, the replacement shipment, and the handling to process the swap — built up to a per-exchange cost and scaled to your volume. Price differences between items and exchanges that escalate into refunds are not included.
Component
Per exchange
Across all exchanges
Reverse shipping (return leg)
8
480
Reship (replacement leg)
6
360
Handling
2
120
Total exchange cost
16
960
Estimates only — not financial, tax, or professional advice.
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What it calculates: Total Exchange Cost, Cost per Exchange, Number of Exchanges.
Updated 5 June 2026 · Transparent assumptions
Back from the customer, then out again
An exchange is a return and a fresh dispatch stitched together. You pay reverse shipping to get the original back and outbound shipping to send the replacement, plus the handling to process both.
So an exchange typically costs more to service than a refund does, because the refund stops after the reverse leg. What makes it worthwhile is that the revenue is retained rather than reversed.
Retained revenue usually beats the extra postage
Compare the exchange cost against the contribution margin on the order. If the margin exceeds the cost of the two legs plus handling, encouraging an exchange over a refund is the better outcome even though it costs more to process.
It also preserves the customer relationship. A buyer who received the right item on the second attempt is far more likely to order again than one who was refunded and left.
Size and fit, overwhelmingly, in anything wearable
Exchange requests concentrate on sizing far more than returns overall do — a customer who wants a different size still wants the product. That makes exchange volume a cleaner signal about your size guide than return volume is.
A single line generating disproportionate exchanges usually has a sizing inconsistency rather than a quality problem, and fixing the size chart removes the cost permanently rather than processing it more efficiently.
Stock held in limbo, and the second chance to get it wrong
While an exchange is in flight, one unit is travelling back and another is committed out, so two units of stock are tied to one sale. For a thin-stocked line that can cause a stockout the sales figures never explain.
There is also a second failure risk. An exchange that is again wrong costs a third shipping leg and usually loses the customer anyway, which is why getting the replacement right matters more than shipping it fast.
Sources & References
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Results are estimates for planning and analysis based on the figures you enter. They are not accounting, tax, or financial advice — verify with your own records and a qualified professional before making decisions.
Published the calculator with its formula, worked example, assumptions, limitations and a bespoke guide, and added an automated formula test suite covering it.
Tested the per-exchange cost across both shipping legs plus handling, and the total across the exchange volume.
Tested that the total is always the per-exchange figure times the count, and that each cost component contributes one for one.
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