According to the National Retail Federation, return rates in 2022 were 17%, and in some e-commerce sectors (such as Fashion), it can be as high as 40%! There's no doubt that returns are here to stay; it's the nature of an online retail business. However, it would be best not to look at or optimise your future advertising with data that includes returns. The more accurate your revenue data, the better the bidding algorithms will work when making real-time bidding decisions and ensure that adaptive historical weighting calculations are correct.
Most e-commerce companies have their most significant marketing spend on Google Ads, so it's crucial to ensure that the data in your Google Ads account is as accurate as possible.
Luckily Google has released a new feature for Google Ads called Conversion Adjustments that allows you to Restate or Retract conversions from your account if you've refunded or part-refunded an order. This article explains how to utilise this feature using a Shopify store.