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7Classification · Loss Prevention

Return Prediction

Which orders will be returned?

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A real-world example

Which orders will be returned?

E-commerce return rates average 20-30%, costing US retailers $816B in returned merchandise annually (NRF). Each return costs $10-20 to process (shipping, inspection, restocking, depreciation). For a retailer shipping 5M orders per year with a 25% return rate, that is $12.5-25M in annual returns processing costs alone, plus the margin loss on items that cannot be resold at full price. Fashion and apparel returns are the worst offenders at 30-40%, often driven by sizing issues, color mismatches, and impulse buying that could be mitigated with better pre-purchase guidance.

How KumoRFM solves this

Relational intelligence built for retail and e-commerce data

Kumo connects orders, products, customer return history, sizing data, product reviews, and browsing behavior into a relational graph. The model predicts at the moment of purchase that Order ORD-8810 has a 68% return probability because the customer ordered two sizes (bracket buying), has returned 40% of past apparel purchases, and this product has a 4.1x higher return rate in the ordered size range. The retailer can proactively offer a virtual fitting tool, sizing recommendation, or slight discount to keep the right size and return the other before shipping both.

From data to predictions

See the full pipeline in action

Connect your tables, write a PQL query, and get predictions with built-in explainability — all in minutes, not months.

1

Your data

The relational tables Kumo learns from

ORDERS

order_idcustomer_idtotalitemsshipping_methodtimestamp
ORD-8810CU-3045$189.982Standard2025-09-14
ORD-8811CU-3012$42.991Express2025-09-14
ORD-8812CU-3078$67.503Standard2025-09-15

ORDER_ITEMS

order_idproduct_idproduct_namesizecolorprice
ORD-8810P-3001Slim Fit BlazerMNavy$94.99
ORD-8810P-3001Slim Fit BlazerLNavy$94.99
ORD-8811P-3020Running Shoes10Black$42.99

CUSTOMER_RETURN_HISTORY

customer_idtotal_orderstotal_returnsreturn_ratecommon_reason
CU-304514642.8%Wrong Size
CU-301224312.5%Changed Mind
CU-3078100%N/A

PRODUCT_RETURN_RATES

product_idoverall_return_ratesize_issue_ratesize_range_variance
P-300132%22%High (M-L boundary)
P-30208%3%Low
P-305018%12%Medium
2

Write your PQL query

Describe what to predict in 2–3 lines — Kumo handles the rest

PQL
PREDICT BOOL(ORDERS.RETURNED = 'True', 0, 30, days)
FOR EACH ORDERS.ORDER_ID
3

Prediction output

Every entity gets a score, updated continuously

ORDER_IDCUSTOMERRETURN_PROBPRIMARY_RISKINTERVENTION
ORD-8810CU-30450.82Bracket BuyingSizing Tool + Keep Discount
ORD-8812CU-30780.24New CustomerStandard Follow-up
ORD-8811CU-30120.09Low RiskNone
4

Understand why

Every prediction includes feature attributions — no black boxes

Order ORD-8810 (2x Slim Fit Blazer, M & L)

Predicted: 82% return probability

Top contributing features

Bracket buying pattern (2 sizes)

M and L

32% attribution

Customer historical return rate

42.8%

26% attribution

Product size-boundary variance

High (M-L)

20% attribution

Common return reason match

Wrong Size

13% attribution

No prior purchase of this brand

First time

9% attribution

Feature attributions are computed automatically for every prediction. No separate tooling required. Learn more about Kumo explainability

Bottom line: Reduce return rates by 15-25% through proactive sizing tools and targeted interventions, saving $12-25M annually in returns processing costs for a 5M-order retailer.

Topics covered

return prediction AIe-commerce returns analyticsorder return predictionreverse logistics AIgraph neural network returnsKumoRFMrelational deep learning retailreturn rate reductionproduct return forecastingretail loss prevention AI

One Platform. One Model. Predict Instantly.

KumoRFM

Relational Foundation Model

Turn structured relational data into predictions in seconds. KumoRFM delivers zero-shot predictions that rival months of traditional data science. No training, feature engineering, or infrastructure required. Just connect your data and start predicting.

For critical use cases, fine-tune KumoRFM on your data using the Kumo platform and Data Science Agent for 30%+ higher accuracy than traditional models.

Book a demo and get a free trial of the full platform: data science agent, fine-tune capabilities, and forward-deployed engineer support.