Dealing With The Returns In The Dropshipping Business

Before writing the return policy, you may want to be sure you understand and know how all the suppliers are dealing with returns. When they have the lax 45-day returned window, you will afford to be kind with the terms. The strict return policy coming from just a supplier will cause you to for re-evaluation of the terms you will allow to have in a place.


When the customer needed to return the item, the procedure will emerge like this:
  1. The customer contacts you in requesting the return
  2. You will request an RMA or the number of return merchandise authorization from your supplier.
  3. Your customer will mail back the merchandise into your supplier, and noting the RMA # at the address.
  4. Your supplier refunds the account for a wholesale price of your merchandise.
  5. The supplier will refund a customer for the whole price of a merchandize.
  6. It is not always that straightforward, but, the following may complicate returns.

Restocking Fees

There are some suppliers that will charge the restocking fee that is essentially the surcharge for the need to return the item. Even if the supplier charges the fees, it is strongly recommended not having them as a part of the return policy. It seemed outdated and unfriendly with your customers. Although you can have to eat the payment here and there, you will likely recoup that the expense in more clients who decide to have business with you. 

Understanding charge-backs

When the customer calls her or his credit card or bank company to contest the charge you had made, you will receive what is being called as “charge back.” The payment processor may temporarily deduct the cost of a disputed charge from the account and then ask you to verify that you bring the goods or the services to the customers. If you cannot provide proof, you will then lose the total in question and then be slapped with the $25 charge back processing payment. When you rack up just too many charge backs compared to the ordered volume you are processing, you will then lose the merchant account.


The biggest cause of charge backs has been usually a fraud, but the customers will also discuss the charge since they didn't identify the business, forgot the transactions or simply did not like a product they received.

When you take the charge back, you usually have just some few days to reply, so you have to act rapidly! To take the shot at taking the money back, you will need to give documentation of the first order, tracking data showing delivery and seemed the wholesale packing slip illustrating which items you bought and shipped. When the contested charge has been a legitimate transaction, you will have the best chance of improving the funds, especially when you did not make any of those untrue statements or the promises within the course of a transaction.


Sad to say, when the charge back is connected to the order with the different billing and the shipping addresses, you are almost surely not going to succeed. Most processors will then justly compensate you for the fraudulent orders being shipped to the invoice address on a card. In the businesses, some are not bothered responding to those kinds of charge backs.

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Josh Madrid Creating Your Personal Online Store

Location: United States

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