No Fault Found Rate

The no fault found rate indicates the extent to which returned items are received back in perfect condition, allowing them to be sold again at full price.

Do you notice that the no fault found rate is going down? Then, for example, try improving the return packaging or adjusting the return process with special instructions for the customer.

How do you calculate the no fault found rate?

You can calculate the no fault found rate by dividing the number of returns received that arrived in perfect condition over a given period by the total number of returns received over the same period.

For example, were there 300 returns over a 30-day period, and only 15 returns came back in perfect condition during that same period? Then the no fault found rate over that period was 100% * (15 / 300) = 5%.

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