What is refund rate?

Refund rate is the share of orders or revenue returned. Because refunds arrive after the sale, they silently erode the profit your ad dashboards celebrated.

4 min read

Live profit view

See POAS vs revenue-only reporting

Profit Bid connects store costs to ad spend so you bid on margin — not vanity ROAS.

Profit before vs after refunds

$ profit / 100 orders

Refunds arrive after the ROAS report. Netting them into POAS keeps bidding honest.

Track POAS automatically from your store — upload profit conversions and scale winners with A/C/X labels.

The timing trap

An order converts today and Google Ads books the revenue. The return happens two weeks later and rarely flows back into the ad platform's ROAS.

So a campaign can look profitable on revenue while a wave of refunds turns it into a loss — especially in apparel and other high-return categories.

Netting refunds into profit

Profit Bid syncs refunds from your store and nets them out of profit conversions, so POAS reflects kept revenue, not gross bookings.

This prevents Smart Bidding from over-investing in SKUs and audiences that buy, then send it all back.

Frequently asked questions

Common questions about this topic — tap to read answers.

How much does refund rate vary by category?

A lot. Consumables may see low single digits; fashion and footwear can exceed 20–30%. Always measure your own.

Should refunds reduce my conversion values?

Yes. For profit bidding, net refunds out of the conversion value so bidding reflects revenue you actually keep.

Pricing

Apply this guide — pick your plan

Select a plan and continue to secure checkout — POAS conversion upload included on every tier.

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