How Much Your Time Is Really Worth When Doing Returns
That "free" return isn't actually free. When you factor in your time, gas, parking, and stress, DIY returns can cost $50-200+ per return—even more than hiring someone to do it for you.
Most people don't think about the true cost of returns because time feels "free." But time is your most valuable resource. Once it's gone, you can't get it back. Let's break down the real math.
The Time Cost of a Single Return
Let's start with the basics: how long does a return actually take?
Based on our tracking of 1,200+ returns, here's the breakdown:
The Complete Return Timeline
- Starting the return online: 8-15 minutes
- Finding packaging: 5-20 minutes (if needed)
- Printing label: 5-15 minutes (if printer works)
- Driving to drop-off: 15-30 minutes (round trip)
- Waiting in line: 10-45 minutes (varies widely)
- Processing return: 3-8 minutes
- Driving home: 15-30 minutes
Total: 61-163 minutes per return
That's 1-2.7 hours of your life for a single return.
The Average Return Time
When we average all returns across different times, locations, and situations:
- Average time per return: 73 minutes
- Median time per return: 65 minutes
So the "typical" return takes about 1 hour and 15 minutes.
Calculating Your Hourly Rate
To figure out if returns are worth your time, you need to know what your time is worth. Here's how to calculate it:
Method 1: Based on Your Salary
If you're employed, calculate your hourly rate:
Annual salary ÷ 2,080 hours = hourly rate
Examples:
- $50,000/year = $24/hour
- $75,000/year = $36/hour
- $100,000/year = $48/hour
- $150,000/year = $72/hour
But wait: This is your "work" rate. Your free time might be worth more because:
- It's limited (you only have so much)
- It's when you relax, spend time with family, pursue hobbies
- It's irreplaceable
Method 2: Based on What You'd Pay to Outsource
Think about what you'd pay someone else to do tasks you don't want to do:
- House cleaning: $25-50/hour
- Lawn care: $30-60/hour
- Personal assistant: $20-40/hour
- Errand running: $25-50/hour
If you'd pay $30/hour for someone to clean your house, your time is probably worth at least that much.
Method 3: Based on Opportunity Cost
What could you be doing instead of returns?
- Working: Your hourly rate
- Side hustle: What you could earn
- Spending time with family: Priceless
- Relaxing: Mental health value
- Pursuing hobbies: Personal fulfillment
If you could be earning $50/hour doing freelance work, that's what your time is worth.
Method 4: The "Stressed Out" Test
If you're stressed about finding time for returns, your time is worth more than you think. Stress has real costs:
- Mental health impact
- Physical health impact
- Relationship impact
- Quality of life impact
The True Cost of DIY Returns
Now let's calculate the real cost of a return when you factor in your time:
Direct Costs
- Gas: $2-5 per trip
- Parking: $0-10 (depending on location)
- Packaging: $5-15 (if you need to buy boxes)
- Printer ink/paper: $0.50-2 per label
Total direct costs: $7.50-32 per return
Time Costs
If your time is worth $X/hour and a return takes 73 minutes (1.22 hours):
Time cost = $X × 1.22
Examples:
- $20/hour: $24.40 in time
- $30/hour: $36.60 in time
- $50/hour: $61.00 in time
- $75/hour: $91.50 in time
- $100/hour: $122.00 in time
Total Cost of DIY Return
Direct costs + Time costs = Total cost
Examples for different hourly rates:
| Hourly Rate | Direct Costs | Time Cost (73 min) | Total Cost | |-------------|--------------|-------------------|------------| | $20/hour | $15 | $24.40 | $39.40 | | $30/hour | $15 | $36.60 | $51.60 | | $50/hour | $15 | $61.00 | $76.00 | | $75/hour | $15 | $91.50 | $106.50 | | $100/hour | $15 | $122.00 | $137.00 |
The "free" return actually costs $40-140+ when you factor in your time.
The Annual Cost of Returns
The average online shopper makes 8-12 returns per year. Let's calculate the annual cost:
At $30/hour (typical professional)
- 8 returns × $51.60 = $412.80 per year
- 12 returns × $51.60 = $619.20 per year
At $50/hour (higher-earning professional)
- 8 returns × $76.00 = $608.00 per year
- 12 returns × $76.00 = $912.00 per year
At $75/hour (senior professional)
- 8 returns × $106.50 = $852.00 per year
- 12 returns × $106.50 = $1,278.00 per year
You're spending $400-1,300+ per year on returns when you factor in your time.
When Return Pickup Services Make Financial Sense
Return pickup services typically cost $15-25 per return. Let's compare:
Cost Comparison
DIY Return:
- Direct costs: $15
- Time cost (73 min at $30/hour): $36.60
- Total: $51.60
Pickup Service:
- Service fee: $20
- Your time (1 min to book): $0.50
- Total: $20.50
Savings: $31.10 per return
Break-Even Analysis
At what hourly rate does a pickup service break even?
Break-even point: When pickup service cost = DIY total cost
- Pickup service: $20
- DIY direct costs: $15
- Break-even time cost: $5
If a return takes 73 minutes (1.22 hours):
- Break-even hourly rate: $5 ÷ 1.22 = $4.10/hour
If your time is worth more than $4.10/hour, pickup services save you money.
Since minimum wage is $7.25/hour (and most people's time is worth much more), pickup services save money for almost everyone.
Real-World Examples
Example 1: Busy Professional ($50/hour)
DIY:
- 10 returns × $76 = $760 per year
- Plus stress and inconvenience
Pickup Service:
- 10 returns × $20 = $200 per year
- Zero stress, zero time
Savings: $560 per year + peace of mind
Example 2: Working Parent ($30/hour)
DIY:
- 8 returns × $51.60 = $412.80 per year
- Plus finding childcare coverage
- Plus stress of fitting it into schedule
Pickup Service:
- 8 returns × $20 = $160 per year
- No schedule disruption
- No childcare needed
Savings: $252.80 per year + convenience
Example 3: Retiree ($20/hour equivalent)
DIY:
- 6 returns × $39.40 = $236.40 per year
- Plus driving stress
- Plus physical effort
Pickup Service:
- 6 returns × $20 = $120 per year
- No driving needed
- Less physical effort
Savings: $116.40 per year + safety
The Hidden Costs of DIY Returns
Beyond time and money, DIY returns have other costs:
Stress Cost
- Worrying about deadlines
- Remembering to do it
- Fitting it into your schedule
- Dealing with lines and crowds
Value: Hard to quantify, but real
Opportunity Cost
What you're NOT doing while doing returns:
- Spending time with family
- Working on side projects
- Exercising
- Relaxing
- Pursuing hobbies
Value: Priceless
Health Cost
- Driving stress
- Standing in lines (physical discomfort)
- Carrying heavy packages
- Exposure to crowds (especially during flu season)
Value: Varies, but real
Relationship Cost
- Taking time away from family
- Arguments about "whose turn it is"
- Stress affecting mood
Value: Hard to quantify, but significant
The Psychology of Time Value
Here's something interesting: even when pickup services cost the same or slightly more in pure dollars, people report feeling "richer" because they've reclaimed their time.
Why? Because time is:
- Limited: You only have so much
- Irreplaceable: Once it's gone, it's gone
- Precious: Especially free time
A Saturday afternoon spent waiting in line at UPS is a Saturday afternoon you'll never get back. That's worth more than $20 to most people.
When DIY Returns Make Sense
DIY returns can make sense if:
- You enjoy the errand: Some people like getting out of the house
- It's on your regular route: If you're already going that way
- You have plenty of free time: And returns don't stress you out
- You're very cost-conscious: And your time value is low
- You're organized: You batch returns efficiently
But for most busy professionals, parents, and people who value their time, pickup services are a no-brainer.
How to Calculate Your Personal Break-Even
Here's a simple formula:
- Estimate your hourly rate (use one of the methods above)
- Calculate time cost: Hourly rate × 1.22 (73 minutes)
- Add direct costs: $15 (average)
- Compare to pickup service: $20
If (hourly rate × 1.22 + $15) > $20, pickup services save you money.
Most people's calculation looks like this:
- Hourly rate: $30-75
- Time cost: $36.60-91.50
- Direct costs: $15
- Total: $51.60-106.50
- Pickup service: $20
- Savings: $31.60-86.50 per return
The Bottom Line
Your time is worth more than you think.
When you factor in your time, a "free" return actually costs:
- $40-140+ per return (depending on your hourly rate)
- $400-1,300+ per year (for 8-12 returns)
Return pickup services:
- Cost $15-25 per return
- Save you 60-90 minutes per return
- Save you $30-100+ per return (for most people)
- Eliminate stress and inconvenience
The math is clear: If your time is worth more than $4-5/hour (which covers almost everyone), pickup services save you money.
But more importantly, they give you back your most precious resource: time.
Ready to reclaim your time? Learn how Returnful works or text us at 469-790-7579 to calculate your personal savings.
Want help calculating your personal break-even point? Text us at 469-790-7579 and we'll help you figure it out.
Written by
Returnful Team
Part of the Returnful team, helping DFW residents save time on their online returns with same-day pickup service.
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