Return Shipping Labels: A Complete E-commerce Guide

Pay-on-scan (POS) labels are only charged when the customer drops off the package and it gets scanned. Perfect for including in packages - you only pay for labels actually used. Available through most shipping platforms.

Prepaid labels are charged immediately when created. Use these when you know a return is happening (customer already requested it). Slightly simpler but you pay whether used or not.

Customer-paid returns put shipping costs on the customer. Acceptable for "changed my mind" returns but damages customer experience. Avoid for defective items.

Make returns easy: 92% of customers will buy again if returns are easy. Include return instructions and labels in packages or make them instantly accessible online.

Set clear policies: Define return windows (30 days is standard), condition requirements, and who pays shipping. Display policies prominently before purchase.

Process quickly: Issue refunds within 24-48 hours of receiving returns. Fast refunds build trust and encourage future purchases.

Offer store credit bonus: "Get 10% extra when you choose store credit instead of refund." Many customers accept, keeping revenue in your ecosystem.

Use economy services: Returns are not urgent. USPS Ground Advantage or UPS Ground saves 40-50% over Priority/Express services.

Consolidate returns: For high-volume returns, set up a returns center that batches and inspects items, reducing per-item handling costs.