Returns and Refunds Checklist

Workflow for the customer service and operations team to process a customer return from RMA request through inspection, refund, and root-cause logging. Built for DTC and marketplace sellers running Shopify, Loop Returns, Gorgias, or equi...

Use this workflow
1

RMA Intake and Eligibility

  1. Pull the order from Shopify or Seller Central

    • Open the order record and confirm fulfillment date, channel (DTC, Amazon FBA, Amazon FBM, eBay, Walmart), and original payment method. Flag Amazon FBA returns — those route through Amazon's customer returns process and reimbursement claims, not this workflow.

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  2. Verify the return window

    • Compare delivery date to your published return window (typically 30 or 60 days for DTC; marketplace policies override your own — Amazon's 30-day default, eBay seller policy, Walmart 90-day). Out-of-window requests escalate to the CX lead for goodwill review.

  3. Confirm SKU eligibility and final-sale exclusions

    • Check the SKU against the final-sale list, hazmat exclusions, intimates / personal care no-return rules, and any clearance flags. Supplements, opened cosmetics, and custom / personalized items are common exclusions — call them out in the policy and on the PDP, not just at return time.

  4. Capture the return reason code

    • Use a fixed taxonomy so reason data is analyzable: defective, damaged in transit, wrong item shipped, sizing, not as described, no longer wanted, late delivery. Free-text reasons are useless for trend analysis — make the agent or Loop / AfterShip form pick from the list.

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2

Label and Customer Communication

  1. Decide who pays return shipping

    • Defective, damaged, or wrong-item-shipped: brand pays, no restocking fee. Buyer's remorse / sizing: customer pays return shipping or accepts a deduction per published policy. Free returns are an acquisition lever; don't quietly start charging — the policy must match the PDP and checkout copy.

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  2. Generate the prepaid return label

    • Issue via Loop Returns, AfterShip Returns, ShipStation, or your 3PL portal. Confirm the return-to address routes to the right warehouse — multi-warehouse brands frequently mis-route returns and pay for unnecessary inter-warehouse transfers.

  3. Send the RMA confirmation email

    • Klaviyo or Gorgias macro — include RMA number, return label, packing instructions, and the expected refund timeline (3-10 business days after receipt). Set the customer's expectation in writing so the follow-up ticket volume drops.

  4. Offer exchange or store credit alternative

    • Loop and Smartrr both let you sweeten store-credit offers (e.g., +10% bonus credit) to retain revenue. Sizing returns convert well to exchanges; defective returns rarely do — don't push exchanges on a customer who got a broken product.

3

Receive and Inspect

  1. Scan the RMA at the receiving dock

    • Match the inbound parcel to the open RMA in the WMS (SkuVault, Cin7, ShipHero). Returns received without an RMA pile up in a no-man's-land bin and become deadstock — every return must be scanned in within 24 hours of arrival.

  2. Inspect condition against policy

    • Check tags attached, original packaging, signs of wear, missing accessories, and any cross-contamination (pet hair, smoke odor). Photograph anything that disqualifies a full refund — you'll need evidence if the customer disputes a partial refund or files a chargeback.

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  3. Route restockable units back to sellable inventory

    • Update on-hand in the OMS so Shopify, Amazon, and other channels resync. Watch for oversell windows — a return added to inventory while a flash sale is live can trigger immediate resell of an unverified unit.

  4. Route damaged units to liquidation or disposal

    • B-stock pallets to liquidators (B-Stock, Direct Liquidation), donations to Good360, or disposal per product type. Cosmetics, supplements, and food cannot be resold under FDA rules even if unopened-in-appearance — dispose, don't liquidate.

4

Refund and Reconciliation

  1. Calculate the refund amount

    • Item subtotal minus restocking fee (if policy applies and customer was disclosed at checkout) minus return shipping deduction (for non-brand-fault returns). Refund original shipping only on brand-fault or full-order returns. Sales tax refunds back automatically through Shopify / Stripe / Avalara.

  2. Issue refund to original payment method

    • Refund through Shopify / Stripe / PayPal back to the original card or wallet. Manual refunds to a different payment method (cash, store credit, different card) trigger fraud flags and friendly-fraud chargebacks — only do it when the original method is closed.

  3. Send refund completion email

    • Note that bank posting takes 3-10 business days regardless of how fast the processor releases. Stating this explicitly cuts the "where's my refund?" follow-up tickets significantly.

  4. Log the return in the analytics dashboard

    • Triple Whale, Lifetimely, or a Sheets export of returns by SKU and reason. Per-SKU return rate above 8-10% on apparel or 3-5% on hardgoods is a product-quality or PDP-accuracy signal — flag it for the merchandising review.

5

Defect Escalation

  1. Open a defect ticket with the product team

    • Attach the inspection photos, batch / lot number if visible, and customer's reason note. Three defective returns on the same SKU within 30 days triggers a manufacturing review with the supplier — don't wait for a recall pattern to form.

  2. Check Amazon and Shopify reviews for matching complaints

    • Search Yotpo / Judge.me and the Amazon ASIN reviews for the same complaint. Defects that show up in returns also show up in 1-star reviews — correlate them so the manufacturing fix gets prioritized against the revenue actually at risk.

  3. File supplier claim or quality dispute

    • Most supplier agreements have a defect-claim window (60-90 days from receipt of the PO). Beyond that, you eat the cost. Maintain a running defect log per supplier per PO so claims are filed before the window closes.