5 Tips to Manage Returns and Refunds in Shopify Dropshipping Business

5 approaches on Handling refund and returns in Shopify dropshipping business

Most dropshipping customers don’t claim returns. Unfortunately, some unsatisfied customers may get upset due to various aspects and need their money back. When running a dropshipping business, there are chances that you may face this challenge.

Returns and refunds are situations that need professional and efficient addresses when they happen. You’ll maintain a positive relationship with customers and suppliers when handling returns and refunds like an expert.

The situation isn’t as frustrating as it sounds. Going deep into this article guarantees you the proper ways to handle the situation acutely.

Handling Returns and Refunds

Dropshippers should answer the customers complaining about the return within 24 hours. The types of products you sell in your dropshipping store determine the possibility of the customers making refunds.

For instance, the likelihood of a dropshipping business selling wine glasses can be as high as 50%. As a drop shipper, consider selling products that aren’t easy to break during shipping.

Here are a few tips on how to professionally process returns and refunds:

  1. Write a return policy from the supplier’s policies
  2. Let the customers have the products and give back their money
  3. Motivation bonuses
  4. Ensure Your Policy satisfies the Customer
  5. Accept returns through the fastest shipping medium

Create a Return Policy from the Suppliers Policies

Dropshipping involves the supplier who fulfills the order directly to the customer without you taking any inventory. Therefore, the supplier may have a return policy that needs keen observation.

Before writing your store’s policies, consider the conditions when the supplier accepts the returns. Some may accept the return but charge a return and stocking fee. Other suppliers don’t accept returns due to their reasons.

Choosing a supplier willing to accept returns and refunds may help your Shopify dropshipping business from huge losses. Research your potential suppliers’ policies when looking forward to sourcing products. 

Once you understand the supplier’s return policies, it’ll be easier to create one based on their standards. You may need a different approach if you source the products from many other suppliers.

Let the Customers Have the Products and Give Back Their Money

Sometimes shipping costs might be expensive, making it hard to return the product to the supplier. In cases like this, letting the customer have the product is worth it. Donating that product to the supplier won’t make you lose since you’ll make a lot from dropshipping.

Dropshipping is all about customers’ happiness. You can provide the best customer experience with returnless refunds. Sometimes the supplier won’t be able to resell or accept the customer returning the product.

Ensure the customers don’t give bad reviews because of unsatisfied fulfillment. Returnless refund is a policy that can vary depending on the product type. There is no need to publicize this kind of policy.

Instead, use returnless refunds to make frustrated customers give your store another chance. Customers need to feel the care to make them return to your store when they need a product you offer.

Letting the customer keep the product and have their money makes the customers trust the legitimacy of your store.

Motivation Bonuses

The best way to deal with returns and refund

Frustrated customers who claim refunds can mean the end of the relationship for doing business with you. To maintain customers relation, create discount vouchers and motivation bonuses.

For example, if you’re selling glass equipment and the customer is upset because some glasses broke on the way. Maybe two glasses broke, and the rest are okay. Give them a bonus item. Tell the customer to keep the commodity and send another package to cover the issue.

Giving the customer a motivation bonus makes the customer recommend your store to friends and family. You can receive more orders from close people to your happy customers and earn significantly from increased sales.

Ensure Your Policy Satisfies the Customers

Customize the return and refund policies to keep the customers satisfied. At some point, you need to be more generous than suppliers, especially when making a significant profit.

For example, if you sell wristwatches that cost $20 from the supplier, you make $50 per product. And the supplier charges shipping, a $4 return fee, and a $3 restocking fee. There is still enough profit margin to pay the shipping and restocking fee.

Covering the return and stock fee for the customer ensures an excellent experience throughout the journey. You can advertise free returns in your policies to stand for unsatisfied customers.

Accept Returns Through the Fastest Shipping Medium

Customers would want their refunds as quickly as possible. You can accept the customer to return the product using the fastest shipping method. And you’ll also want to refund them quickly as soon as you receive the product.

You can utilize a PO box to accept returns and then use the bulk rate to ship the product back to the supplier. Using other shipping options to return the product from the customer to you is faster than waiting for a refund from the supplier.

For large items like furniture, the shipping cost is high. Let the customer ship back to the supplier to avoid paying twice for the shipping. Before accepting other shipping options, evaluate the item’s weight and size.

Reasons Why Refund and Return Policies Are Essential for Your Shopify Dropshipping Store

To conduct a successful Shopify dropshipping store, ensure that you have a return and refund feature. This feature guarantees the customers that they’ll receive their money back when there is an issue.

Customers trust a store that has a refund policy that favors them. Shoppers aren’t likely to shop from a store without a refund feature. Dropshipping stores might have several benefits, including Improved customer engagement.

Dropshipping customers need the best service to keep them returning. You can identify a problem when customers complain about the product from your store. Customers claiming a refund give feedback on their experience during return.

If most customers complain about the product quality, you must change the supplier and look for another source. BestDealer ensures you get quality products if you find difficulty sourcing high-quality products.

Final Thoughts Concerning Returns and Refunds

To minimize returns, you need to sell high-quality products that aren’t fragile. It is better to avoid goods that may break before reaching the customers while dropshipping. Refunding more than one customer can be costly due to spoiled products.

BestDealer is one of the perfect solutions to help you minimize returns by helping you with fast order fulfillment. Also, they have a good Refund/Resend/Return Policy, if the customer receives the products with some problem, they will handle this. Solved a big problem for the seller. Some customers might claim a refund due to the quality of products, and shipping delay. Choose BD if you want a third party to help you with order fulfillment services.

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