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Refunds & Cancellations

Handle customer requests professionally while protecting your business. This guide covers refund policies, processing procedures, and best practices.

Refund Policy​

Setting Your Policy​

Define your refund policy in Settings → Policies:

Common Policy Elements:

  • Refund timeframe (7, 14, 30 days)
  • Condition requirements
  • Non-refundable items
  • Return shipping responsibility
  • Restocking fees (if any)

Policy Templates​

Flexible Policy

Full refund within 30 days if item is unused and in original condition. Buyer pays return shipping.

Standard Policy

Refund within 14 days for damaged or incorrect items. Custom/personalized items non-refundable.

Strict Policy

All sales final. Refunds only for damaged items with photo documentation within 7 days.

Processing Refunds​

Full Refund​

  1. Open the order
  2. Click Refund Order
  3. Select Full Refund
  4. Enter reason (internal note)
  5. Choose refund method:
    • Original payment method
    • Store credit
  6. Click Process Refund

Partial Refund​

For partial issues:

  1. Open the order
  2. Click Refund Order
  3. Select Partial Refund
  4. Enter refund amount
  5. Specify reason
  6. Process

Common partial refund scenarios:

  • One item in multi-item order
  • Shipping cost only
  • Discount for minor damage
  • Price adjustment

Refund Timeline​

Payment MethodProcessing Time
Credit Card5-10 business days
Debit Card5-10 business days
PayPal3-5 business days
Store CreditImmediate

Order Cancellations​

Customer Cancellation Request​

When a customer wants to cancel:

Before Shipping:

  1. Review request promptly
  2. Check if order is already packed
  3. Cancel and refund if possible
  4. Communicate decision to customer

After Shipping:

  1. Inform customer item is in transit
  2. Offer return upon receipt
  3. Process refund when item returned

Seller-Initiated Cancellation​

You may need to cancel orders for:

  • Item out of stock
  • Unable to fulfill (damage, etc.)
  • Suspected fraud
  • Customer unresponsive

Steps:

  1. Open the order
  2. Click Cancel Order
  3. Select reason
  4. Process refund automatically
  5. Customer receives notification

Returns Process​

Setting Up Returns​

Configure return settings:

  1. Settings → Returns
  2. Set return window
  3. Define acceptable conditions
  4. Specify return address
  5. Set restocking fee (if any)

Handling Returns​

  1. Customer requests return
  2. Review request
  3. Approve/deny with reason
  4. If approved, provide return instructions
  5. Track return shipment
  6. Inspect returned item
  7. Process refund

Return Conditions​

Define what condition items must be in:

ConditionAccept Return?
Unused, original packagingYes
Opened but unusedCase by case
Used/displayedGenerally no
Damaged by customerNo
Defective/our errorAlways yes

Disputes and Chargebacks​

Chargeback Process​

If customer files chargeback:

  1. You receive notification
  2. Provide evidence within deadline
  3. Stripe/payment processor reviews
  4. Decision made

Evidence to Provide​

  • Proof of delivery (tracking)
  • Customer communication
  • Product description accuracy
  • Refund policy (shown at checkout)
  • Photos of item shipped

Preventing Chargebacks​

  • Respond to customer issues quickly
  • Offer refunds proactively
  • Use clear product descriptions
  • Ship with tracking always
  • Keep communication records

Special Situations​

Custom/Personalized Items​

Generally non-refundable, but consider:

  • Refund if error is yours
  • Partial refund for minor issues
  • Remake if feasible

Digital Products​

  • Typically non-refundable after download
  • Consider refund if technical issues
  • Offer support before refund

Damaged in Shipping​

  1. Ask customer for photos
  2. File carrier claim
  3. Offer replacement or refund
  4. Don't require item return (usually)

Wrong Item Received​

  1. Apologize immediately
  2. Ship correct item ASAP
  3. Provide return label for wrong item
  4. Consider letting customer keep wrong item (low value)

Communication Templates​

Refund Approved​

Hi [Name],

Your refund of $[amount] has been processed for order #[number].

Please allow 5-10 business days for the refund to appear in your account.

Thank you for your patience, and I hope to serve you again in the future.

Best,
[Your name]

Refund Denied​

Hi [Name],

Thank you for reaching out about order #[number].

Unfortunately, I'm unable to process a refund because [specific reason related to your policy].

I'd be happy to [alternative solution: store credit, exchange, etc.] if that would work for you.

Please let me know how you'd like to proceed.

Best,
[Your name]

Return Instructions​

Hi [Name],

I've approved your return request for order #[number].

Please ship the item to:
[Your return address]

For your protection, please use a tracked shipping method.

Once I receive the item and verify its condition, I'll process your refund within 2-3 business days.

Thanks,
[Your name]

Best Practices​

Be Responsive​

  • Respond to refund requests within 24 hours
  • Acknowledge receipt even if decision pending
  • Keep customer informed of status

Be Fair​

  • Honor your stated policy
  • Consider goodwill gestures for loyal customers
  • Don't argue over small amounts

Document Everything​

  • Save all customer communications
  • Take photos of items before shipping
  • Keep tracking information

Learn from Returns​

  • Track return reasons
  • Identify product issues
  • Improve descriptions/photos
  • Update policies as needed

Analytics​

Refund Metrics​

Track in your dashboard:

  • Refund rate (% of orders)
  • Refund reasons breakdown
  • Average refund amount
  • Chargeback rate

Healthy Benchmarks​

MetricTarget
Refund Rate< 2%
Chargeback Rate< 0.5%
Resolution Time< 48 hours

Next Steps​