How to Handle Returns and refunds in Dropshipping? (template included)

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Refunds Returns. Two words that are most feared by ecommerce entrepreneurs

We could probably find the following:

  • “Oh no, they didn’t like my products.”
  • “I have just wasted my marketing budget.”
  • “I have lost all the revenue from this client”
  • “All the hard work I put into it was for nothing.”

Refund requests don’t have to be negative. You can still delight and impress your customers if they ask for a return, even if the transaction didn’t go as planned .

It is important to keep your customers happy when they return their order or request a refund.

You are the business owner. Your brand is your responsibility. Your job is to handle the situation professionally and offer the best possible service for your customers.

What is the best way to handle returns and refunds, especially if you are a dropshipper.

This is an important part of running your business. However, it can be difficult. We created this article to help you.

We will explain all you need to make refunds and returns pleasant for customers. And we’ll show you how a solid return policy can help increase your revenue and conversions.

Are you ready? Let’s get started.

It is essential to set expectations

Your first step in handling returns and refunds as an entrepreneur is to set clear expectations for everyone who visits your store, no matter if they make a purchase.

Why?

Clear refund and return policies are essential for customers during their shopping experience.

Research has shown that 67% of online shoppers verify the returns page of a business before making a purchase.

It is important that your online store has an easy-to-find return policy page. This page will provide all the information your customers need to make confident purchases.

You must include certain things on your returns policy page. These are:

  • You can exempt certain items from your return policy (e.g. socks or underwear due to hygeine reasons).
  • Returns are always free
  • You may offer products for exchange
  • What countries are eligible to receive refunds or returns?
  • The return period for customers

Are you looking for an example of a returns policy? Gymshark has its Returns Policy down.

You can see in the image below that they have a page dedicated to their return policy. This contains all you need if you are a customer seeking a refund.

What about their return policy? It was easy to find.

In general, customers are conditioned to look at the footer of websites for information about legalities or policies.

You’ve guessed it, Gymshark has a Help section at the bottom of their websites. This contains their size guides, FAQs, order policies, as well as their refund and delivery policies.

Overall, Gymshark makes me feel confident when I shop with them. Because I know that even if things don’t go my way, I can still enjoy a positive shopping experience.

This is exactly what you want to make your customers feel. Trust is super powerful in ecommerce.

How Your Return Policy Can Help you Earn Sales

Dropshipping Returns Policies are crucial for all ecommerce businesses, large and small .

We discussed earlier how a business’s return policy is crucial for customers shopping with confidence. We haven’t mentioned how important a return policy can make a difference in increasing sales.

Yes, that’s right. Your returns policy can help you increase sales.

But how do you go about it?

It’s as simple as this: If you offer free returns on your products, customers can buy from you knowing that in the worst scenario, if the product needs to be returned, they are covered.

This is good news for customers. 95 per cent of customers believe that a smooth process for returning goods would encourage them to purchase again from a business.

It is important to remember that while 30 day free returns is an impressive policy, you must back it up with growth strategies, or else you might end up losing money.

Customers can be added to your mailing list. This way, even if they return their product, their email address is still available so that you can send them targeted marketing emails. You never know, you might make some sales.

You can retarget customers who have been acquired through paid marketing campaigns. Targeting customers with products they are likely to be interested in will allow you to increase sales.

It is important to not look at returns in a negative light. It might be that you lose the initial capital. However, providing the service your customers want can help you build a long-lasting brand.

Dropshippers and Returns

Dropshipping can be a stressful business. You might worry about returns.

Even if you don’t ship or handle any products, accepting returns may seem confusing.

Dropshipping is a viable business model . However, it’s not an excuse to refuse to accept returns or refunds.

Why?

This is the truth: Dropshipping is not something your customers know.

They may not even have heard of dropshipping.

It doesn’t matter from where the product was shipped to them.

They are only concerned about moving forward.

Dropshippers Should Offer Returns

It’s unfortunate that this order didn’t go through, but it would be even more disappointing if they were unable to return the product.

Your first customers are crucial as you start a business. 

We strongly recommend that you accept refunds and returns.

If you decide to offer refunds on your products, however, you must make it easy for customers.

Refunds without Returns

Dropshippers can offer refunds without requiring customers to return their products. This can work for both sides.

Wait!

Yes, that’s correct. Here’s how you can offer great customer service and refunds, but not deliver.

Ask your customer whether they would prefer a new product or a refund. Tell them they can keep their existing product.

Acceptance is a good sign! You’ll get a lot of compliments from them about the gratuity product that you send. If your margins are large enough, you may still be able to make a profit.

This is a great way to let customers know if they receive a damaged product.

How to create a Returns Policy page

Okay, so we have spoken about the importance of returns policies for businesses.

It’s now time to dive into creating a returns policy page for your Shopify store .

First, log in to Shopify. Next, select the “Online Store” channel.

Once you have opened your Online Store tab click on “Pages”.

You’ll be able to see all pages in your store. Click on “Add page” to go there.

Next, create a title for the page. Refunds and returns policy works. Finally, enter your policy in the “Content” box.

You don’t have to manually write your entire refunds and returns policy.

Shopify’s free refund and return policy generator can be used to provide a solid starting point.

You should carefully read the entire content and make any necessary changes.

After you have sorted your content, click “Save” at bottom of page. You’ll receive a notification about page creation, like the one shown below.

Now your refunds policy and returns policy are in place. However, we must ensure that customers who visit your store actually see it. We’ll click “Add it to your store’s navigation” to do this.

You can add the page to your footer and that’s it.

You don’t need to have menus in place yet, but Shopify has a simple step by step guide.

It wasn’t that difficult, right?

That’s all from us. You now know the importance of offering refunds or returns and how to create your own return policy.

Aliexpress Dropshipping Returns and Refunds

AliExpress Dropshipping Business allows you to launch your online business without having to keep any stock or inventory. This low-risk business is gaining popularity online due to its ease of use and great benefits. There are some pitfalls to avoid, including dropshipping.

Dropshipping is a business that requires you to manage order fulfillment. You might also need to manage returns. It becomes more complicated because you don’t have stock, and must rely on your supplier to complete a successful return.

There are still things you can do for your customer to make the situation easier.

How to manage returns and refunds in an Aliexpress dropshipping company: Learn about your supplier’s refund and return policies

Dropshipping is where your buyer purchases from your store. The supplier then packages and ships the order directly to your customer. Your customer is happy to receive the order and provides positive feedback.

Sometimes things can get complicated and customers request a refund or return. It is important to prepare for these situations. Even if there have been no returns complaints, it is important to have everything covered. Nonetheless, it is important to understand the return and refund policies of your supplier.

This is an important part. It is important to read this carefully.

Dropshippers should be careful about who they choose as their supplier. Once you have chosen the right supplier, make sure to review their refund and return policies before creating your own.

Here are some things to look out for:

  • What happens if your supplier refuses to accept returns?
  • What time can the product be returned after sale?
  • Is it possible to get reimbursement for return shipping costs?
  • What is their approach to the return process?
  • Accepting orders that are not correct?

After you have carefully read their policies, you can move on to the next step.

How to manage returns and refunds in an Aliexpress dropshipping company: Create your own refunds & returns policy

Now is a good time for you to create a return & refund policy in your dropshipping shop. You should create a separate page for the Returns Policy in your dropshipping store. Also, make sure to include the main points on the FAQs page.

This will increase the trust potential buyers have in your brand. When creating your policies, make sure they are as similar as possible to the supplier. To avoid confusion in the future, make sure to clearly state all details.

Consider the following:

  • You should not exceed the 30-day return policy of your supplier. You can give your consumer an extra time of 20-25 days for shipping delays and refunds.
  • Be sure to specify the reasons you are returning the product. You don’t have the obligation to return the product if the supplier allows it. It is possible to say “All sales are final, except when the product has been sent incorrectly or damaged.”This will make it easier to handle returns when they are clearly stated in dropshipping store’s returns policy.
  • Keep in mind that you are a dropshipping company and if you don’t have a physical office (many dropshippers do not), you should not include a return address on the policy page. You can send an email ID to the person and request them to contact you directly.

You can choose to give your supplier’s address, or your own.

Tip: A P.O. Box address is a great way to manage returns and ask consumers to send it to you. Use this address for returns. This will ensure that your personal information is kept secure.

Common reasons for returns in dropshipping businesses like Aliexpress: How to handle them

After you have created a great Returns and Refund Policy, it is time to focus on how you handle returns. This is a problem that can affect any business. This is where you need to be focused on the solution and making sure your customers are happy.

Let’s first look at the most common reasons that returns occur.

The online description of the item is incorrect

The most common reason for product returns is when the item received doesn’t match its online description. It is possible to have the product returned. You could have made a mistake or the supplier is to blame.

There is a possibility that you are at fault if you manually list items and then edit their description. You could also be responsible if your supplier uses direct listings. Once the error has been made, it is important to accept responsibility and correct the situation.

Send an email of apology to the buyer. Then, contact your supplier. Your supplier can be your partner and help you to handle the returns. If they are at fault, ask the supplier to send the replacement or refund.

You are responsible for your customer and should do all you can to make sure they are happy. They will be grateful for your concern, even if it is a small amount.

Product is defective or damaged

These types of returns can happen, even though it is unlikely if you have a great supplier.

Dropshipping customers may encounter these customers. Make it as simple as possible for them to return the product. If possible, pay for return shipping costs and obtain the return label.

A outstanding customer service will help you retain customers for dropshipping shops and increase brand loyalty.

They ordered the wrong size or the product didn’t fit.

A mistake in order is another reason that leads to returns. Perhaps your shoe shop ordered the wrong size. It would have been easy 123 if you had stock. Things can get complicated because of third-party involvement.

If they are willing to accept returns for mistake orders, check with them first before reverting the buyer. You don’t need to accept the return if the buyer is at fault. If the item is less expensive than $5, you can still send it back and ask the customer to return the item.

It may have cost you a little more, but you might gain a loyal customer who will be happy to buy from you again. It is also not worth it to go through the return process for products that cost $5 or less.

How to deal with returns and refunds in an Aliexpress dropshipping company: The actual return & refund process

Let me first show you how to deal with customers or return items.

1. Customer requests a return.

2. After you have analyzed your reason for returning the item, contact your supplier to request a Return Merchandise Authorization number (RMA) and a replacement/refund (as per the customer’s request).

3. You then send an apology email to the customer, along with the RMA number. The supplier will send the package to you.

Notify the buyer to get a tracking number, if they are paying for return shipping. If this is your first time handling returns I recommend you get involved and have the product shipped directly to you.

4. Once you have received the product, inspect it for damage, defects, or any other reason (if applicable). Take photos and send them to your supplier. If the supplier is directly receiving your product, get in touch.

You should verify that they received the product.

Tip: Always be polite to your supplier. Your supplier is your partner in dropshipping. Being rude to them will not make you happy. Respect your supplier when handling returns or order fulfillment.

5. 5. The supplier initiates the return/refund.

6. You receive the product from your customer or you get your refund.

Expert Advice: If a customer insists upon a refund, they can request a free upgrade or store credit along with a refund for future purchases. This will make the customer feel better and help to create a positive memory for the store.

How to handle refunds and returns in an Aliexpress dropshipping company: Handling returns in your dropshipping shop

Let’s now look at the best ways to handle refunds and returns in your AliExpress dropshipping shop.

Accept responsibility

Dropshipping is a business that doesn’t require you to stock items or manage shipping and packaging. The buyer may not be aware of any of these facts. Always take full responsibility for any return request made by a buyer.

Do not try to put the blame on the supplier. Your buyer will think you are trying to get out of a sticky situation. Instead, admit your mistake. Accept the error of your supplier and work with them to find the best solution for the consumer.

Be patient and show respect

This is an important point. You must not escalate the situation or be rude to your supplier when you receive a return. There are many possible problems and you need to be patient.

Respect your supplier first and foremost. Then, work together to solve the problem. This will strengthen your relationship with your supplier and provide a quick solution to your buyer.

If the supplier continues to send defective or incorrect products, it may be time to end the relationship and find a new supplier that will maintain your online store’s good reputation.

Do extra for your buyers

Customer who requests a return should be treated fairly and promptly. You can do little things to make a lasting impression on your customer while you work to resolve the issue.

Here are some things you can do.

  • Offer a product upgrade for no additional cost. Before you commit the user, make sure that there are upgrades available from your supplier.
  • Offer a coupon code for a discount on your next order.
  • You can give them a free store credit and a refund amount to repurchase.
  • Offer to pay the return shipping costs.

These things may seem small to you but they are important to your customer. They can help rebuild trust in your dropshipping business.

Recognize products that do not require returns

Some products might have higher return shipping costs than the replacement. If the product is very cheap, it might be more expensive to return. Let’s say a customer purchased a wrong-sized ring for $5 and wants to return it.

Although you are not responsible for the mistake they made, they can return the product if you have not stated it in your Return & Refund Policy. You can offer to replace the product and still keep the original.

This is much simpler than attempting to return the entire package. This small gesture could have turned a trouble buyer into a returning customer for your store.

Dropshipping: A quick overview of how to handle refunds and returns

It can be daunting to receive your first return request from a dropshipping business. It is a part of your business that you can turn into an opportunity to impress customers with exceptional customer support and a quick solution.

This guide will cover all aspects of handling returns and refunds in AliExpress Business. I hope you find it useful and can use it to help you quickly and effectively deal with these issues.

One quick reminder: Your customer should always be your top priority. You must work with your supplier to provide a quick solution and make sure your customer is satisfied.

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