Dropshipping Returns in 2025: How to Handle Them Right

Dropshipping returns can break your profits—or build customer trust.

In this 2025 guide, you’ll learn how to set up a return policy, reduce refund requests, and handle returns smoothly across Shopify and major suppliers.

Discover the real causes behind high return rates and what to do about them.

Create Your Online Store in just 5 Minutes – For Free

Pick your niche, our AI builds your store, add 10 winning products and we teach you how start selling today. Start picking your niche

Choose a niche

Electronics & Gadgets

Fashion & Apparel

Home & Garden

Sport & Fitness

Pets

Build My Store

What You’ll Learn:

Build your Shopify store in minutes, not weeks

Start dropshipping with a free AI Shopify store, automated supplier, winning products and free courses. If you don’t make at least 1 sale, we will pay you $50 for your time.

Build your free store

Key Takeaways – Dropshipping Returns in 2025

• Average eCommerce return rate in 2025 is around 18%, with fashion peaking at 30% and dropshipping stores ranging between 10%–30%.
• Returns cost U.S. merchants $400B/year and 75% of customers expect free returns as standard.
• Top 7 reasons for returns: item not as described, poor quality, shipping delays, sizing issues, buyer’s remorse, damaged goods, and compatibility errors.
• Best solutions include better product descriptions, sizing charts, usage guides, faster shipping, and proactive communication.
• Returnless refunds are recommended for low-cost products to avoid reverse logistics and improve satisfaction.
• Shopify’s built-in return tools help you create returns, generate shipping labels, and issue refunds or exchanges smoothly.
• Use RMA (Return Merchandise Authorization) to validate returns, especially for international orders and dropshipping suppliers.
• Adapt return policies per supplier and always align customer terms with your backend logistics to avoid losses.
• 15+ practical strategies like offering exchanges before refunds, AR-powered visuals, and detailed FAQs significantly reduce returns.
• Top Shopify return apps include ReturnGO, Return Prime, Loop, AfterShip, ExchangeIt, and ParcelPanel.
• International returns require compliance with local laws, proper customs labeling, and often benefit from 3PL warehouses or returnless models.
• Fraud detection tools (like AVS or Shopify fraud analysis) protect against abusive or fake return attempts.
• Clear return policy builds trust, increases conversions, and reduces chargebacks and disputes.
• Supplier vetting and sample orders are essential to avoid quality issues and misrepresentation in listings.
• Post-purchase communication such as follow-up emails with tracking helps catch issues early before returns happen.

What’s the Average E‑Commerce Return Rate Right Now?

If you’re running an online store in 2025, expect around an 18% return rate on average.

That’s a lot higher than what brick-and-mortar stores deal with—usually under 10%. Fashion stores, especially clothing brands, can see returns climbing to 25–30%, while categories like electronics and beauty products usually stay under 10%.

In fact, when you zoom out, the total U.S. retail return rate (online and in-store) was around 13.2% in 2024.

How Bad Are Returns in Dropshipping?

For dropshippers, the return rates tend to land somewhere between 10% and 30%—but where you fall in that range depends on what you’re selling and how good your suppliers are.

If you’re selling cheap products with long shipping times, you’re likely to see more returns and cancellations. People get impatient or disappointed.

On the flip side, niche products or well-made items with accurate descriptions can bring your return rate closer to 10%, which is the sweet spot.

But listen—if you’re seeing return rates creep up to 40–50%, something’s broken. That usually means poor product quality, misleading ads, or both.

What’s Actually Causing All These Dropshipping Returns [ 7 Main Causes]

Based on recent data, about 60% of returns happen because of fit or quality issues—which is good news in a way, because that means you can fix it with better sizing guides and better supplier QC.

Another 30% come from buyer’s remorse, meaning people just changed their minds.

That’s harder to control, but it helps to manage expectations upfront.

And here’s something else to keep in mind: around 75% of customers now expect free returns.

Moreover, did you know that the return cost in the US is reaching up to $400 billion annually?

Thus, this is no game, and you must acknowledge why your customers return your dropshipping products. So, let’s see the main causes.

1. Item Not as Described (Expectation vs. Reality)

The #1 cause of returns is when the product isn’t what the customer expected – e.g. color, size, or features differ from the description​.

For instance, a shirt labeled “cotton blue” might arrive in a different shade or material quality, disappointing the buyer.

In dropshipping, sometimes product listings use supplier-provided info that may be inaccurate.

Therefore, you must optimize your product pages and provide your customers with insightful product descriptions and high-quality images. Also, it is a good idea to provide a product video to showcase your product and its features.

This is one of the things I really appreciate about Quadlock. Every product page includes multiple videos that highlight the material provide usage instructions, explain the features, and more.

2. Product Quality Issues (Defective or Damaged Items)

If an item arrives broken, malfunctioning, or low-quality, expect a return or refund request immediately.

Over 80% of returns are triggered by products arriving damaged or broken.

When customers receive a product that is damaged, defective, or not as described, they are likely to request a return or refund. This can happen due to various reasons, such as poor packaging or mishandling during shipping.

For example, let’s say a customer orders a smartphone case from your online dropshipping store.

However, when they receive the product, they find that it is cracked or does not fit their phone properly. In this case, the customer would likely request a return or refund due to the product’s quality issue.

So, since you are dropshipping, I strongly advise you to choose your suppliers carefully. They are the ones who can actually see and check the product before it is sent to the customer.

I personally search for dropshipping suppliers on the Dropshipping.com supplier directory. Here, you can get valuable insights about each supplier even before starting to work with them.

3. Shipping Delays or Errors

Dropshipping often involves cross-border shipping (e.g. suppliers in China shipping to the US/EU), which can mean long delivery times.

Customers may return items that arrive too late or refuse delivery altogether. If an order is meant for a birthday or holiday and misses the date, its value to the customer drops.

For instance, once, I had an issue with a package getting lost during transit, and my customer did not receive their order within the promised delivery window.

Frustrated with the delay, she decided to return the shoes and requested a refund. So, I lost my profit and a customer because of the unreliable dropshipping supplier I was working with. 

Tip: Learn about Dropshipping Scams & How To Avoid Them As a Beginner.

4. Sizing Issues or Wrong Size Ordered

Sizing is another frequent issue, especially for stores selling clothing, shoes, or jewelry. When customers can’t try items on, they often receive something that doesn’t fit the way they expected.

This happens all the time—someone orders a pair of pants or a T-shirt online, only to find the size is either too big or too small when it arrives.

With clothing, in particular, there’s a 26% return rate due to size issues. To avoid this, include a clear sizing guide in your store that matches the sizes of the countries you’re shipping to.

Also, if your products are from China, ensure you convert the sizes properly for US or European customers. This simple step can drastically reduce returns.

For instance, the ASOS marketplace offers detailed size charts on its website. They make sure to include a clear size guide for every product category. So, I decided to review the women’s dress size chart.

For instance, I sell necklaces, and I saw returns pile up because the sizing guide is based on Chinese measurements. Customers received items that were too tight without any explanation.

5. Damaged or Defective Products

Even with reliable suppliers, products can arrive damaged or defective, especially during transit.

Sometimes, no matter how careful you are in choosing suppliers, items might break on the way to the customer.

To handle this, always ask your customer to send photos or videos of the damaged product. This gives you proof to send to the supplier when requesting a replacement or refund.

If you have a strong relationship with your supplier, they’ll often send a replacement without issue.

Meanwhile, make sure to apologize to your customers and assure them a new item is on its way. Handling these moments with care will leave a lasting positive impression.

6. Buyer’s Second Thoughts After Purchasing

Sometimes there’s nothing wrong with the product at all – the customer just changed their mind.

Maybe they found it cheaper elsewhere, or decided they don’t need it. Approximately 30% of returns fall into this category of no-fault returns

They may have found a similar product at a lower price or realized they didn’t really need the item after all.

For instance, a customer impulsively buys a gadget, then realizes later it was outside their budget and returns it unopened..

While this can be harder to prevent, having a clear return policy that handles these situations smoothly can make all the difference.

Reducing buyer’s remorse starts with having accurate product descriptions and setting clear expectations.

So, including customer reviews in your store can help buyers feel more confident in their decisions.

7. Technical or Compatibility Issues

This is common for electronics and accessories. The product may be of good quality, but it isn’t compatible with what the customer has.

For instance, a customer buys a phone case or laptop charger from your store, only to discover it doesn’t fit their specific model. Or a smart home device that isn’t supported in their region.

They return it for a refund.

I suggest you to clearly highlight compatibility details in the product description​.

List which models or versions the product works with (for instance, “Only compatible with iPhone 14 and 15 series”).

For electronics, note voltage, region codes, app requirements, etc.

This upfront info will steer customers to only buy items that work for them, reducing returns due to incompatibility.

Crafting Your Shopify Return Policy & Process (2025)

If you are about to use Shopify for dropshipping, you need to know how to create your Shopify return policy page to be clear about your dropshipping returns.

Want to set up your first store on Shopify but do not how to create your Shopify return policy page? Then read on!

To create your Shopify return policy page, you need to follow these steps

Step 1 – Log in and go to your Shopify admin page.

Step 2 – Open The Pages Section

Then, you need to open up the “Online Store” tab and select “Pages”. And, the next thing you need to do is click the “Add Page” button.

Step 3 – Create a title for your return policy page.

For instance, you can use something like, “Refunds and Returns Policy”. Also, from here, you can boost it for SEO, customize the page layout, etc.

Step 5 – Create your Dropshipping Return Policy

Go to the “Content” box and include clear information regarding your dropshipping returns. Cover several points to ensure that your customers know the limits and restrictions your store places on returns.

For example, I find Shopify’s refund and return policy generator very useful. Plus, it is all for free. Hence, it helps me generate a refund and return policy.

At the bottom of the page, click “Save”.

Step 6 – Add Your Dropshipping Return Policy To Your Navigation page

Finally, click on “add it to your store’s navigation” to ensure that people who visit your site can actually see your Shopify return policy page.

First, you can access this section by clicking on the “add it to your store’s navigation” from the “Pages” section.

Or, you can simply go through Online Store> Navigation. Either way, click on “Add Menu”, and add your Returns & Refunds page there.

How To Create The Dropshipping Return Submitted By Customer?

Step 1: Create the Return in Shopify

Go to the Orders tab in your Shopify admin and click “Create return” on the relevant order. You can select which item(s) are being returned, add the reason, and Shopify will auto-calculate the refund amount based on your return rules—like a restocking fee if you have one.

Step 2: Provide Return Shipping Info

You can generate a return label via Shopify Shipping if both you and the customer are in the same country. Either pay for the label or charge it to the customer. Or, upload a label from a supplier, or select “No shipping required” if the item doesn’t need to be sent back.

In a dropshipping setup, your supplier usually gives you a return address. Be sure to clearly tell the customer where to send the product.

Step 3: Communicate with the Customer

Shopify emails the customer with return instructions and tracking info. Include details like an RMA number and packaging instructions. If you use a branded returns app, it may handle this automatically and more professionally.

Step 4: Receive and Inspect the Item

Once the item is returned to your warehouse or supplier, make sure it’s tracked and verified. Check the item’s condition—whether it’s resellable, damaged, or defective—before moving to the refund stage.

Step 5: Refund or Exchange

Use Shopify’s “Refund” button to return the money to the original payment method. For exchanges, Shopify Plus users can add replacement items to the return order. Others can create a new order manually or use an app.

Don’t forget to restock the item if it’s in good condition or mark it as unsellable if it’s damaged.

Step 6: Understand Refund Timelines

Refunds go back to the original payment method and can take 5–10 business days for cards. Mention this in your policy. Best practice is to issue refunds within 7 days of receiving the item to keep customers happy and compliant.

Step 7: Keep a Record of Everything

Shopify logs all refund activity in the order timeline. Add notes about exceptions, disputes, or repeat returners—helpful in case of chargebacks or return abuse patterns.

Pro Tip: Returnless Refunds

For items under $10 or not worth shipping back, consider offering a refund without a return. Let the customer keep or donate the product. This saves costs and boosts satisfaction—but use it sparingly to avoid losses.

Step 1 – Create the Return in Shopify

When a customer requests a return, start by navigating to the Orders section in your Shopify dashboard. Click “Create return” on the relevant order.

You’ll be able to select which item(s) are being returned, provide the reason for the return, and Shopify will automatically calculate the expected refund amount based on your return settings, such as deducting a restocking fee if applicable.

Step 2 – Provide Return Shipping Information

Next, you’ll need to handle the shipping details. If both your store’s primary location and the customer are in the same country (e.g., the U.S.), you can generate a return shipping label directly through Shopify using Shopify Shipping. You can either cover the label cost or charge it to the customer.

Alternatively, you can upload a third-party return label (for example, one provided by your supplier), or select “No shipping required” if you plan to handle the return differently. In dropshipping scenarios, suppliers often have a designated return address, such as a warehouse or regional center. Be sure the customer knows exactly where to send the return.

Step 3 – Communicate Clearly with the Customer

Once the return is created, Shopify can automatically send an email with instructions and return label details. Make sure to include any Return Merchandise Authorization (RMA) numbers and specific guidelines, such as “include all original packaging”.

If you’re using a returns app or branded portal, these tools often take care of customer communication in a more polished and on-brand manner.

Step 4 – Receive and Inspect the Returned Item

If the product is being sent back to your warehouse or your supplier’s, ensure that the shipment is tracked and received properly. Once you receive the item, inspect it to confirm its condition—whether it’s eligible for resale, needs repair, or should be marked as damaged.

Step 5 – Issue a Refund or Process an Exchange

Once you’ve verified the return, go back into the order and click “Refund” to send the money back to the customer’s original payment method. Shopify logs this transaction automatically.

If you’re offering an exchange instead, Shopify Plus users can add exchange items to the return order. For others, you can manually create a new order for the replacement product, or use a third-party app to manage exchanges.

Don’t forget to restock the returned item into inventory if it’s sellable—or mark it as unsellable or damaged if not.

Step 6 – Understand Shopify’s Refund Mechanics

Shopify allows you to issue both full and partial refunds. Most refunds go back to the original payment method, and processing times vary—credit card refunds may take 5–10 business days. To avoid confusion, state this clearly in your return policy. It’s best practice to issue refunds within 7 business days of receiving the return, to keep your customers happy and aligned with general ecommerce standards.

Step 7 – Keep a Record of Everything

Shopify automatically logs return and refund actions in the order timeline, but it’s also smart to add internal notes or comments, especially if an exception was made or you suspect return abuse. This documentation can be vital in the event of a chargeback or dispute.

Pro Tip: Offer Returnless Refunds for Low-Cost Items

For inexpensive products (typically under $10), you can choose to issue a refund without requesting the item back.

This “returnless refund” approach reduces reverse logistics costs and can leave a positive impression on your customers. Just be strategic—use this only for low-value products to avoid losses or abuse.

How Do Returns Work With Dropshipping?

As you are not dealing with inventory and shipping (you are a dropshipper), the concept of accepting dropshipping returns for your products may sound confusing.

Namely, your customers do not know that you are collaborating with dropshipping suppliers whenever you receive a return request. And, that is worse, because you are the main culprit even though it is not your fault. However, you have to deal with it. So, this is how it goes.

1. Your customer informs you that they want to return a product.
2. Then, you request a return merchandise authorization number, i.e., RMA from the supplier.
3. Next, your customer sends back the product to your supplier.
4. And your supplier refunds your account for the wholesale price of the product. Finally, you refund your customer for the full price of the product.

Unfortunately, some things may complicate this process. And these things include:

• Restocking fees. If your supplier charges restocking fees (extra fees for returning a product), it is not advisable to include them in your return policy. Even though you may have to cover these fees from time to time, you will probably recoup them from selling to other customers.
• Defective products. In most cases, suppliers do not cover return postage for defective products. The main reason for this is that they are not liable for defects because they are not manufacturers. But you need to compensate your buyers for the return shipping fees for defective products. After all, you want to build a successful dropshipping business, don’t you?

  Learn How to Cancel a Dropshipping Order? [A Step-By-Step Guide].

Two Options for Your Dropshipping Return Process

When setting up a dropshipping return process, you’ve got two main choices: either have the returns sent back to you or let the return address be the manufacturer.

Both options have their perks, so let’s break them down, including what to watch out for with return requests, handling refunds, and keeping customers happy.

1. Returns Sent to You

If you choose to have returns sent directly to you, you get full control over inspecting the product. This gives you a chance to see if the wrong product was sent or if it arrived damaged due to the supplier’s fault.

For example, I once had a customer return a product because of wrong details in the description, and being able to see the item myself allowed me to address the issue quickly.

This approach also helps you manage excess inventory by assessing the condition of items and deciding whether they can be resold.

However, you’ll need to consider the extra effort required to handle returns. You’ll be responsible for repacking the item, printing new shipping labels, and sending it back to your dropshipping supplier.

Even if your preference is to have the supplier handle the bulk of returns, it’s worth directing a few return requests to yourself to experience the return process firsthand.

This way, you know exactly what your customers go through and can ensure the return instructions are clear and the return window is reasonable.

This method is especially helpful if you work with multiple suppliers. Having customers send products back to different addresses can be confusing and lead to mistakes.

2. Return Merchandise Authorization (RMA) to Your Supplier

If you don’t want to handle returns yourself, letting your dropshipping supplier manage them might be the better option.

This is especially appealing if your business focuses on selling products at scale and you want to avoid the hassle of managing returns for every single order.

However, before you go this route, you need to know your supplier’s return policies. Some suppliers might charge fees or have limitations on what they’ll accept back.

Also, be sure you understand if they require you to create return merchandise authorization (RMA) forms, as this can affect how quickly you can process return requests and handle refunds. It’s critical to get these details right, so your refund policy aligns with your supplier’s fault guidelines.

You’ll also need to figure out how to cover return shipping fees. If you’re offering free returns to customers, those fees need to be built into your pricing strategy or covered by your supplier.

Managing International Returns & RMAs in Dropshipping

Handling returns becomes more complicated when you, your customer, and your supplier are in different countries. Here’s how to streamline international returns in a way that protects your margins and keeps customers happy.

1. Know the Return Regulations of Each Region

Each country has its own consumer protection rules, and failing to meet them can lead to legal issues or customer complaints.

• In the EU, customers must be given at least a 14-day return period (cooling-off window), and in many cases, sellers must offer free returns or provide specific disclosures.
• In the US, there’s no federal mandate, but some states like California require businesses to display their return policies clearly, or default to a 30-day return window.
• As of 2025, some regions are introducing eco-friendly return laws that may require disclosures about disposal or recycling, so it’s important to stay updated.

Make sure your return policy aligns with the regions you serve.

2. Set Up a Return Merchandise Authorization (RMA) Process

Require Pre-Approval for Returns

Use an RMA system so that customers must contact you before sending anything back. This ensures:

• The return fits your timeframe and reason policies.
• You can issue an RMA number and correct return address, which may be your supplier’s, not yours.

In cases like AliExpress, you may need to initiate a return on their platform to generate a return label or receive approval. Without this, returns may get lost or rejected, especially by international suppliers.

3. Understand Your Suppliers’ Return Policies

As I already mentioned, when it comes to dropshipping returns, you depend on your supplier. They are the ones that actually send your products to your customers. Therefore, check on supplier’s return policy.

For example, Aliexpress offers 15–30 day return windows, with some products labeled “Free Return” in certain countries. Returns must usually be unused and in original packaging.

On the other hand, CJ Dropshipping accepts returns within 30 days for valid reasons (damaged, defective, wrong item) with photo proof. However, it does not accept returns for buyer’s remorse or incorrect addresses, which may require you to offer a partial refund without return.

Therefore, adjust your own policy to mirror your supplier’s terms, including restocking fees, deadlines, or product conditions.

4. Offer Local Return Solutions When Possible

Work With 3PLs or Freight Forwarders

If your sales volume justifies it, use a third-party logistics provider to offer local return addresses. These services:

• Let customers ship to a U.S./EU depot, where returns are bundled and shipped back internationally to you or your supplier.
• Improve customer experience, but are best for medium or high-volume stores due to cost.

Use Returnless Refunds for Low-Value International Orders

If your volume is low, or the product is cheap:

• Consider refunding without requiring a return.
• Let the customer keep or donate the item.
• This can reduce hassle and boost loyalty—just don’t overuse this method, or it can affect your margins.

5. Be Proactive With Customer Communication

Follow Up After Delivery

When tracking shows an order is delivered:

• Send a follow-up email asking if everything arrived safely.
• This opens the door for feedback and lets you resolve issues before a return request or dispute arises.

Offer Fast, Friendly Support

Especially with international buyers, responsive customer service is key. A quick offer of an exchange or partial refund can prevent negative reviews and save you money on complex returns.

6. Handle Return Shipping and Customs Properly

Advise on Customs Forms

For international returns, customers should mark packages as “returned merchandise” to avoid import duties when your supplier receives the item.

Decide Who Pays for Return Shipping

Most dropshippers don’t cover international return costs unless there’s a defect or error. In your policy, clearly state:

“Customers are responsible for return shipping costs unless the return is due to our error or a product defect.“

If you decide to cover the cost, you can:

• Generate a label using international carriers or apps.
• Or, reimburse the customer via PayPal.

Just be aware of shipping costs before making a promise.

7. Track Every Return and Close the Loop

• Always track the return package.
• Once received by the supplier or warehouse, verify the item and issue a refund or replacement.
• Mark the return as completed in Shopify or your app.
• Note any refunds or replacements you receive from your supplier in your order logs for bookkeeping.

Keep the customer updated, especially if return transit takes time. A message like:

“Your return package arrived – we are inspecting and will refund you by Friday.”
goes a long way in building trust.

Top 6 Shopify Apps For Creating Dropshipping Returns

1. ExchangeIt Returns & Exchange

ExchangeIt Returns & Exchange is designed for efficient return and exchange management directly within Shopify Admin.

The app allows you to restock, refund original order items, and create exchange orders directly from your orders page.

It simplifies the return process by offering a custom-branded return portal and automating refunds and exchanges. With flexible refund options and support for custom return policies, ExchangeIt integrates seamlessly with AfterShip.

The app has a free plan for up to 10 returns, with paid plans starting at $9.99 per month for unlimited returns.

2. ReturnGO Returns & Exchanges

ReturnGO automates returns and exchanges through its branded self-service return portal. The app lets you set custom return rules, offer store credits, and integrate with multiple carriers for return labels.

Pricing

• ReturnGuard Plan (Free): Unlimited returns with the revenue-share model.
• Starter: $23/month (20 returns/month)
• Premium: $147/month (110 returns/month)
• Pro: $297/month (300 returns/month)

Highlights

• Instant store credit and vouchers are issued on return initiation.
• Auto-approval rules, multi-language support, and unlimited return reasons.
• Gift returns, product-to-product exchanges, and “donate item” options for social good.
• Upsell with “Shop Now” feature on Premium and Pro.
• White-labeled return portals and robust analytics dashboard.

ReturnGO is perfect if you’re looking for smart automation, reward systems, and long-term scalability.

3. AfterShip Returns & Exchanges

AfterShip Returns & Exchanges offers a branded, self-service return portal that automates the returns process and helps recapture revenue by encouraging exchanges instead of returns.

The app allows you to set smart return rules, automate refunds, and manage carrier settings for efficient package returns.

It integrates with multiple carriers like UPS, FedEx, USPS, and supports multi-language functionality. AfterShip’s free plan includes up to three returns per month, with paid plans starting at $23 per month.

4. Return Prime – Top-rated (4.9) With Exchange-to-Revenue Focus

Return Prime is praised for its seamless Shopify integration and responsive support. It allows merchants to create a branded returns portal to easily manage returns, refunds, and exchanges.

Pricing

• Free plan: 14-day full trial, then up to 5 returns/month on the free tier.
• Grow Plan: $19.99/month
• Grow-Boost: $49.99/month
• Scale Plan: $149.99/month (for high-volume needs)

Highlights

• Exchange incentives: Offer bonus credit to customers who choose an exchange over a refund.
• Automated return labels and multilingual portal customization.
• Refunds to original payment or gift card/store credit.
• Support for WhatsApp/SMS return updates (on higher tiers).
• Highly rated onboarding and support for new users.

5. Loop Returns & Exchanges – Enterprise-Level Tool Used by Brands Like Allbirds

Loop is built for scaling stores with a focus on converting returns into exchanges. It delivers a premium user experience, prompting customers with upsell or alternative product offers before processing a refund.

Pricing

• Free Plan (“Offset”): Basic return software with access to “Return Bars” for drop-offs.
• Essential Plan: $155/month
• Advanced Plan: $340/month (for unlimited return destinations and added features)

Highlights

• “Shop Now” exchange flow: Customers can browse and purchase a more expensive item and pay the difference.
• Instant exchanges before the return is received.
• Fraud prevention rules and return reason logic (e.g., require photos for returns).
• Advanced integrations with help desks, CRMs, and 3PLs.
• Rich analytics to track trends and reduce refund rates.

Note: Best suited for mid-sized to enterprise Shopify stores or those on Shopify Plus.

6. ParcelPanel Returns & Exchanges – Generous Free Plan + Tracking Sync

Created by the team behind a popular order tracking app, ParcelPanel offers a well-designed returns experience with strong integration into the Shopify ecosystem.

Pricing

• Free Plan: Up to 6 returns/month
• Essential: $20/month (60 returns, $0.45 per extra)
• Professional: $59/month (120 returns)

Highlights

• Branded return page and label generation, even on free tier.
• Custom refund options, restocking/return fee logic, and exchange prompts.
• Embedded returns page and returns widget inside customer accounts.
• Carrier integration for real-time label costs.
• Upsell on exchanges, automated workflows, and return analytics.

If you already use ParcelPanel’s tracking tool, this is a natural upgrade to provide a seamless post-purchase experience.

15 Strategies to Reduce Dropshipping Returns in 2025

Learn How To Add Favicon On Shopify In Minutes.

1. Make An Easy-To-Understand Returns Process 

When it comes to dropshipping, making the returns process easy and hassle-free is essential for maintaining customer satisfaction. 

First things first, I suggest you automate as much of the process as possible. For instance, by using Shopify apps, you can set up a self-service return portal that allows customers to easily initiate return requests and track the progress of their returns. This not only saves time for the customer but also reduces the workload for the business owner or customer service team.

Automation also allows you to create a standardized return policy template, eliminating the need for individual negotiations with each customer. This ensures consistency and fairness in the returns process.

Additionally, providing a clear and concise return policy on the website, including information on return windows, return addresses, and applicable return shipping fees, is crucial for setting customer expectations from the start.

For example, I find the Everlast return page an easy breeze. Their return page is straightforward, clearly stating that they accept returns within a 30-day window from the date of purchase, provided that the products remain unused and in their original packaging.

The page also provides concise instructions, presented in bullets, for smooth returns and speedy exchanges, ensuring a seamless and trouble-free return and exchange experience.

2. Protect Yourself From Fraudulent Dropshipping Returns

When running a dropshipping business, it is crucial to have a fraud policy in place to protect your dropshipping business from fraudulent orders. Unfortunately, online businesses are prone to fraudulent activities, and having a robust fraud policy can significantly reduce the risks.

Therefore, you must familiarize yourself with the common signs. Thus, look out for suspiciously large orders, rush orders with expedited shipping, mismatched billing, shipping addresses high-value items being purchased with stolen credit cards.

To mitigate these risks, consider using an address verification system (AVS) to ensure that the billing and shipping addresses provided by the customer match.

If you encounter a fraudulent order, it is essential to take the necessary steps promptly. Document the original order, including all the information provided by the customer. This will be vital when reporting the fraud to the appropriate authorities or your payment processor.

Additionally, provide tracking information for the shipped order to prove that you fulfilled your part of the transaction. Be sure to respond promptly to any requests for additional information from law enforcement or your payment processor.

Here’s a great example for you. Built Athletics includes a unique fraud clause that is not commonly seen. This serves as a deterrent to discourage customers from engaging in return fraud by making them reconsider their decision.”

3. Make a FAQ Section For Your Return Policy

One important aspect of creating a seamless customer experience for your dropshipping business is having a clear and easily accessible return policy in place. To ensure that customers can quickly and easily find the information they need, it is crucial to have a Frequently Asked Questions (FAQ) section on your website.

Thus, you can include common questions and concerns related to returns, refunds, and exchanges and provide customers with valuable information upfront. 

For example, you can consider answering questions such as:

• What is your return policy?
• How do customers request a return or exchange?
• What is the return window?
• How long does the refund process take?
• What are the common reasons for returns?
• What are the return shipping costs and procedures?
• How can customers reach your customer service team?

Take a look at this example. Here is a return policy template for eCommerce provided by MyProtein, which includes frequently asked questions about their return policy.

This template aids in boosting conversions by addressing customer inquiries, potentially converting users into paying customers.

4. Provide Country-Specific Return Information

Different countries have varying laws and regulations regarding returns, so it’s important to understand and comply with these to ensure a smooth return process.

When outlining your return policy, be sure to include country-specific return information. This includes providing the correct return address for each country, as well as stating any specific instructions or requirements for international returns. It’s also essential to clearly communicate the return shipping cost, as this can vary depending on the country.

By including country-specific return information in your policy, you can avoid potential complications and ensure a positive customer experience.

For instance, Gymshark excels in its return policy by effectively highlighting its region-specific return guidelines.

5. Mention Any Exceptions That May Arise

To leave no room for misunderstandings, it is crucial to outline any limitations or conditions for returns. For instance, certain products may be non-returnable due to hygiene reasons or other specific factors. Additionally, it is important to clearly state any fees associated with returns, such as return shipping costs or restocking fees.

To further clarify the return process, you should specify any additional requirements or processes. For example, this could include obtaining a Return Merchandise Authorization (RMA) number before returning a product or providing proof of purchase.

For instance, I personally got inspired by Under Armour’s return policy on this one. They mention the possibility of exceptions in their 60-day return policy. Plus, the manufacture date on the tag should be less than 2 years old.

If the customer is unable to provide proof of purchase, the return will be processed based on the most recent selling price and the refund will be issued in the form of a UA eGift card.

By clearly outlining these requirements, customers will have a better understanding of what is expected of them.

6. Have a Reliable Policy For International Dropshipping Returns

One of the main challenges with international returns is the issue of shipping costs. Unlike domestic returns, international returns often involve higher shipping costs due to longer distances and potentially multiple carriers.

Therefore, I recommend you clearly communicate and outline who is responsible for these costs – the customer or the seller.

Another complexity to consider is customs fees. Depending on the country, customers may be required to pay customs fees when returning items. Therefore, you must ensure that their return policy clearly states who will cover these fees, to avoid any confusion or dissatisfaction.

And, don’t forget about the return timeframes. Due to longer shipping times, it is important to set reasonable return windows that align with customers’ expectations. This ensures that customers have enough time to initiate a return and ship the item back.

For example, Overstock has dedicated a specific webpage for international returns, facilitating a seamless return process for customers located outside the country.

7. Understand The Dropshipping Return Policies Of Your Suppliers

Again, as you will not process the dropshipping returns yourself, you must have a good understanding of your suppliers’ return policies.

The whole return process will happen in the background. And, this involves effective communication between you and your dropshipping suppliers

But before I get any further, let me clarify one thing. You, as a dropshipper, have to write YOUR OWN return and refund policy as people will buy from your store and not directly from your suppliers.

And you have to display your return policy on your site.

Still, you must take into account your suppliers’ respective return policies before writing your own.  Here is what to pay attention to in their return policies.

• How they deal with returns (the entire process);
• Whether they accept returns on wrong orders (e.g., wrong shoe size);
• Who pays the cost of return shipping;
• How long your customers can send an item back after receiving it;
• Do they charge restocking fees (and if so, what are they?)

I also want to mention that in case you work with more than one dropshipping supplier, you must know the return policy of each supplier.

Check out the 21 Best Dropshipping Suppliers In The USA [General + Niche].

8. Write Accurate and Informative Product Descriptions

Your product description is your first line of defense against returns.

Clearly list materials, dimensions, weight, and what’s included. Don’t say “soft material”—say “100% polyester.” If the phone doesn’t come with a charger, say so.

Customers appreciate transparency. Avoid vague terms and aim to eliminate surprises.

For example, Oat Haus store reduced returns significantly just by making ingredient lists and product specs more visible—helping customers make informed decisions before buying.

So, if you have no idea how to do it, you can try using ChatGPT as a help. So, give instructions and your requirements, and the app will provide you with a great product description.

For instance, I always find Quadlock’s product descriptions inspiring. They thoroughly cover every aspect, from product details and features to material and size information.

9. Use High-Quality Product Images and Videos

Low-resolution or poorly lit photos lead to misunderstandings. Instead, include high-quality, zoomable images from multiple angles, and show the item in use or alongside something for scale.

If you can, add a short product video or 360° view. Even better, use AR tools (like “see in your space” for furniture).

These media upgrades can dramatically lower return rates caused by mismatched expectations.

10. Provide Clear Size Guides and Fit Information

If you’re selling apparel or accessories, a dedicated and accurate size guide is essential.

Include specific measurements (in inches or cm), model stats, and fit notes like “runs small—order one size up.”

For international stores, always include US, EU, and UK conversions.

Some Shopify apps even allow customers to input their measurements to get automated size suggestions—an amazing way to reduce return rates due to fit issues.

Bonus: Offer a “How to Measure” guide or integrate a size recommendation app—these tools significantly reduce return rates from poor fit.

11. Enable and Leverage Customer Reviews and Q&A

Customer reviews often fill in the blanks that your product description misses.

Encourage customers to review sizing, fit, color accuracy, and how the product is used. These first-hand insights help guide new buyers.

Also, add a Q&A feature to your product pages.

Publicly answered questions like “Is this rug off-white or pure white?” help future customers and prevent returns due to misunderstandings.

12. Be Transparent With Shipping and Delivery

Don’t let customers guess about shipping time or location. Be upfront if something is shipping from overseas and could take 2–3 weeks. If there’s a risk of customs fees, say so.

Most returns and chargebacks happen because customers feel left in the dark.

Also, providing tracking numbers and proactive email updates builds trust and avoids unnecessary refund requests due to perceived delays.

13. Include Usage Instructions and Tips

Poor instructions can lead to returns even when the product works perfectly. Include a simple manual or how-to PDF/video link in the order confirmation or package.

For complex items (electronics, skincare tools, DIY kits), showing how to use the product correctly can eliminate confusion and reduce returns.

14. Offer an Exchange or Discount Before a Refund

When a customer initiates a return for something minor, offer an alternative solution. Maybe they didn’t like the color—so send another one with a small bonus like 10% off. Many customers will accept an exchange or partial refund instead of going through the return process. It saves the sale and enhances their experience.

15. Improve Packaging to Prevent Damage

If products are arriving broken, it’s time to talk to your supplier. Request better packaging—stronger boxes, bubble wrap, or premium packaging options.

Even paying a little more upfront can save you loads in return shipping and refunds. Better packaging equals fewer returns.

16. Decrease Delivery Times

If you want to decrease your delivery times, I recommend you consider working with dropshipping suppliers that have warehouses located closer to your customers. This can significantly reduce shipping time, as products can be shipped directly from nearby warehouses.

Alternatively, you may opt to work with a dropshipping agent who has a worldwide fulfillment center. This central hub allows for faster shipping to customers worldwide.

Check out my guide about Dropshipping Agent: How To Find The Best Dropshipping Agents?

In any case, it’s important to manage customer expectations by informing them about potential delays in delivery. Transparency is key to reducing the likelihood of return requests.

Also, no matter what, always be sincere about the shipping times. This is the best way to avoid dropshipping refunds and returns. So, you can place a section on your product page, giving the shipping info to customers.

17. Stay In Touch After The Purchase

This is equally important as being in touch before or during the purchase. So, you can consider sending a post-purchase confirmation email to your customers. This email should include order details, tracking information, contact information, and expectations.

By providing this information, you are not only reassuring the customer that their order is being processed but also providing them with all the necessary information they may need in case they have any questions or concerns.

Additionally, offering returnless refunds for expensive-to-return items can be a great way to improve the overall customer experience.

How To Ensure Your Return Policy Matches With Your Suppliers?

Of course, you should not turn the return policy of your supplier into your own. Instead, you need to use their policy as a framework and make sure your policy matches theirs.

When writing your policy, please consider the following:

Determine the timeframe during which you will accept dropshipping returns.

Give your customers enough time to request a product return. For instance, if your supplier gives you a 15-day return window, you should give your customers 10-12.

Cover the return policy of each supplier within your policy if you work with a few suppliers.

For example, one supplier may have a 30-day return period and the other a 20-day return period. If this is the case, you can give your customers a single return policy of, let’s say, 15 days for items from both suppliers.

Avoid specifying any return address on your refund and return policy page.

Again, if you work with multiple suppliers and specify a few addresses in your policy, it may be quite confusing for your customers. So, in your return policy, you simply need to state that your customers should contact you for more information about returns via e-mail.

Do not accept dropshipping returns that do not have a tracking number.

You do not want your customers to claim they sent the product back to you, and it gets “lost” in the mail, right?

How To Handle Dropshipping Returns In An Expert Manner?

I know that handling dropshipping returns may be one of the thorniest problems for you. But, you must learn how to become a problem solver.

Think of the restaurant service. What would a waiter do if there’s an order return? Of course, the waiter almost always accepts a dish sent back and fires a new order for their guest as soon as possible. There’s no difference in the dropshipping world as well. You also need to accept and deal with dropshipping returns the right way.

Also, as online shopping has become the preferred method for a lot of people, the importance of providing simple, quick return solutions is crucial.

So, here is how I handle dropshipping returns professionally:

1. Determine The Reason Why Your Customer Wants A Return

When a buyer submits a return request, the first thing you need to do is ask them why they want to return the item. Just ensure your tone is apologetic and positive rather than negative and suspicious.

Another important thing you need to do as a dropshipping store owner is to ensure the product meets all the requirements so that you can process the return.

And remember that, it is one thing to accept a return if the product is damaged/wrong, or if it does not match the product description. But, it’s quite different to accept a return if the customer has already used the item or simply changed their mind.

2. Apologize To Them For The Issue

I know, most of the time is not even your fault. Your supplier is responsible for solving problems with dropshipping returns. But, your customer does not know that. So, you are the face that needs to apologize and respond to customer complaints.

That’s why you should never blame your supplier for the mistake, no matter if they sent the wrong or damaged item, etc.

So, you can write something like this to your customer in order to apologize for the inconvenience:

“Dear [the name of your customer],

Please accept our sincerest apologies for the delivery of [e.g., wrong order] to your address. We are really sorry that …”

3. Respond To The Dropshipping Returns Request

Once you have apologized to your customer, it is time to respond to the return request. That’s to say, you need to let your customer know that you are going to fix the problem.

It is important to check if it is cheaper for you to ask your customer to return the item to your supplier or to simply send a new item to them without asking them to return the first one. In some cases, return shipping can be more expensive than sending a replacement to your customer.

Also, before mentioning a refund, check if your customer is able to wait for a replacement or not

Either way, you must contact your dropshipping supplier before verifying your customer’s replacement/return request. 

4. Contact Your Supplier

Whether your customer wants a replacement or their money back, you must inform your dropshipping supplier about the issue. As mentioned above, you need to request an RMA number from the supplier.

If your supplier approves the return, you need to give your customer the return address and the RMA number. Keep in contact with your supplier to stay informed about the entire return process.

Depending on your customer’s preferences, your supplier will either ship a new product to them or refund your account for the wholesale price of the product. If your customer wants a refund, then you need to refund them for the full price of the product.

How To Handle Dropshipping Returns When Working With AliExpress Or Chinese Suppliers?

Dealing with dropshipping returns when sourcing from AliExpress or Chinese suppliers may not be that simple.

The main reason for this is that you might not want your customer to send the item back to China, particularly if your customer is not based in China.

Also, when there is a problem with an order a customer places on your site, it is often because the order never arrived (a missing item) or your customer is unhappy with the product.

This means that AliExpress dropshipping returns often happen due to the long shipping times or the goods do not match the description.

Tip: Learn how to reduce AliExpress Shipping Times.

Case No.1 – Order Never Arrived (a Missing Item)

For the first case, you must discuss the problem with your AliExpress supplier and ask them to resolve the issue.  So, in this case, you can probably open a dispute on AliExpress, and the supplier will return the money.

Case No.2 – The Customer Is Unhappy With The [roduct

However, for the second case, using better-quality product photos and being as specific and realistic as possible in your product descriptions would be wise.

For example, what I do when dealing with Chinese suppliers, is I order products from them as a customer. This way, I can check on the product’s quality, the shipping times, etc. 

Also, on AliExpress, I use the Up Assistant extension, so I can check on the seller’s rating and credibility.

Nevertheless, once you and your supplier have made the mistake, you must take responsibility and do your best to make things right. Contact your supplier and resolve the issue together.

Also, when it comes to creating your AliExpress return policy, you must write a crystal clear return policy so that your customers know what to expect from you.

That way, you will not only minimize the rate of dropshipping returns, but you will also make your customers happy.

How To Get Fewer Refunds And Dropshipping Returns Requests?

While it’s impossible to avoid returns altogether, there are steps you can take to minimize the number of refunds and return requests you receive. 

Choose Your Dropshipping Suppliers Wisely

As I already mentioned, in dropshipping, suppliers are the ones that send your orders to your customers. And, of course, you must be sure that the products to be sent are high-quality products. Plus, you need to be sure about the shipping times’ accuracy. 

So, what you can do to ensure this?

• Ask for product samples. By requesting product samples from your customers, you can check on the product’s quality. 
• Consider the location of the suppliers. Opt for suppliers who are closer to your target market, as this can significantly reduce shipping costs and delivery times. Faster shipping and delivery enhance the overall customer experience and increase customer satisfaction.
• Supplier reviews also play a vital role in the selection process. Regularly check and evaluate the feedback left by other dropshippers or businesses who have worked with the suppliers you’re considering. Look for positive reviews that highlight reliable shipping, product quality, and exceptional customer service. This will give you valuable insights into the supplier’s reliability and trustworthiness.

For example, I always search for reliable dropshipping suppliers from the Dropshipping.com supplier directory, They have a huge supplier base of 2000+ suppliers from various dropshipping niches.

Why Does Dropshipping Businesses Need a Return Policy?

Boost Customer Satisfaction with a Clear Return Policy

Having a solid return policy has saved me so many times! When I set up my dropshipping business, I made sure to offer a 30-day return window where customers can easily request a return if something doesn’t fit or meets their expectations.

For example, a customer ordered a jacket that was too snug, and thanks to the clear return process, they returned it with no hassle.

They ended up shopping with me again because they trusted how I handled the refund request, which is exactly what you want for customer satisfaction and loyalty in a dropshipping store.

Simplify Returns with Multiple Suppliers

Since I work with several dropshipping suppliers, things can get messy if returns aren’t organized.

That’s why I’ve put a lot of effort into making sure my return process clearly states where customers need to send items back, depending on the supplier.

Once, a customer accidentally sent a watch to the wrong return address, but because my return instructions were so clear, we quickly redirected it to the right supplier, avoiding shipping delays and confusion. It saved time and kept the customer happy.

This is especially important in a dropshipping business model with multiple return requests from different suppliers.

Reduce Disputes with Transparent Return Shipping Fees

I’ve learned that being upfront about return shipping fees is crucial. In my store, smaller items like jewelry have free returns, but larger products, like electronics, require the customer to cover the return shipping costs.

Once, a customer returned a phone charger, and since they knew beforehand that the return was free, the refund process went smoothly. By clearly stating who handles the return costs, I avoid confusion, protect my profit margins, and keep the focus on customer satisfaction.

Build Trust with Clear Return Instructions

I always provide step-by-step return instructions so that customers know exactly how to handle a return. When a customer needs to return an item, such as a blender, I make sure they have the return merchandise authorization (RMA), the return shipping label, and clear directions on where to send the item.

Clear instructions like these make sure the returns process is seamless and reduce any stress for the customer. This level of transparency is key to running a successful ecommerce store and meeting customer expectations.

Strengthen Customer Loyalty with Excellent Return Processes

In my online business, I’ve found that offering free returns for first-time purchases helps build strong customer loyalty. Recently, a new customer returned a pair of shoes they didn’t like, and since the return process was quick and easy, they not only left a glowing review but also returned to buy more.

This kind of positive experience, with no stress over return shipping costs or delays, is what keeps customers happy and loyal to my dropshipping store.

It also ensures my ecommerce business thrives, as customer loyalty is built on these smooth interactions.

Conclusion

Setting up a clear, reliable dropshipping returns policy is essential for managing customer expectations and minimizing disputes.

In my opinion, a well-crafted policy is not just a requirement; it’s a powerful tool for building trust and loyalty.

Remember, quality issues, shipping delays, and inaccurate product descriptions are among the top reasons for returns, so be meticulous with your supplier choices and product listings.

Always consider the extra steps needed to handle international returns, define who covers shipping fees, and make sure your policy aligns with each supplier.

Before starting, think through these key factors—doing so can save time, build credibility, and ultimately boost your dropshipping success.