Refund & Returns Insurance Cost Estimator
Estimate your eCommerce refund protection or returns insurance cost based on sales volume and return rate.
Protect your eCommerce business from refund losses and fraudulent returns. Calculate your insurance premiums and potential savings instantly.
Sales Data
Policy Parameters
Typical premium rates range from 0.5-2% of order value. Higher coverage amounts may have higher premiums.
Refund insurance protects eCommerce merchants against financial losses caused by customer returns, cancellations, or fraudulent refund claims. It's typically priced as a small percentage of the total transaction value, allowing sellers to stabilize cash flow and protect their bottom line.
Fraud Protection
Covers fraudulent refund claims and chargebacks
Cash Flow Stability
Predictable costs vs. unpredictable refund losses
Customer Trust
Offer "insured returns" to increase conversion
Input Parameters:
- • Monthly Orders: 2,000
- • Average Order Value: USD40
- • Return Rate: 15%
- • Coverage: 90%
- • Premium Rate: 1%
Calculation Results:
- • Monthly Refunds: USD12,000
- • Coverage Amount: USD10,800
- • Monthly Premium: USD800
- • Net Savings: USD10,000
- • Annual Savings: USD120,000
Prevents Unpredictable Losses
Return spikes and seasonal variations won't devastate your cash flow with insurance protection
Improves Profitability Forecasting
Fixed premium costs make financial planning more accurate and reliable
Builds Customer Trust
"Insured returns" messaging can increase conversion rates and average order values
Compare Premium Rates
Shop around and get quotes from multiple insurance providers
Reduce Return Rates
Improve product quality, sizing guides, and customer service
Use Refund Analytics
Identify patterns and fraud to reduce unnecessary claims
Optimize Coverage Levels
Balance coverage amount with premium costs for best ROI
What is refund insurance for eCommerce?
Refund insurance is a specialized policy that protects online merchants from financial losses due to customer returns, chargebacks, and fraudulent refund claims. It typically covers a percentage of refund costs in exchange for a monthly premium.
How much does refund protection cost?
Refund insurance typically costs 0.5-2% of your total order value, depending on factors like your industry, return rate, and coverage amount. Higher-risk businesses may pay higher premiums.
How do I calculate return insurance premiums?
Premiums are calculated as a percentage of your total sales volume. For example, if you have USD50,000 in monthly sales and a 1% premium rate, your monthly premium would be USD500.
Is refund insurance worth it for online sellers?
Refund insurance can be very valuable for businesses with high return rates or expensive products. It provides predictable costs and protection against catastrophic refund losses that could otherwise threaten your business viability.