07/30/2026
A $60 refund feels like a small hit. The customer you just lost over it isn't.
Most brands treat refunds and exchanges the same way in their reporting. They're not the same event. A refund is $60 out the door and a customer who may never order again. An exchange is that same $60 staying in your business, plus a customer who's still shopping with you next quarter.
Run the math on your own numbers and it gets uncomfortable fast. If that $60 customer was worth $300 over the next year, every refund you could've turned into an exchange is a bigger loss than your P&L is showing you.
The fix isn't asking customers to choose exchange out of loyalty. It's making exchange the easier, faster path so it's the obvious choice.
Swipe through to see the math...