Managing returns and refunds in delivery: a complete guide

Shipping refunds represent an average of 2 to 5% of revenue. Half of them are justified (actual errors), and the other half are contestable (customer abuse or platform errors).

Category 1 – Refunds justify: actual item missing, error on your part, objectively degraded quality. Accept them, correct the process and move on.

Category 2 – Contested Refunds: The customer is claiming an item that was in the package (you have the photo), the customer says the quality was bad without specific details, or the customer has a history of repeated complaints.

To dispute: gather your evidence (complete order photo, preparation time, staff testimony), submit the dispute via the partner portal, and follow the case file.

Maintain a record of refunds: date, order, amount, reason, status (approved/disputed/recovered). This record gives you a clear overview of your refund rate and dispute performance.

Set a goal: a repayment rate below 2% and a successful dispute rate above 50%. Beyond that, investigate the root causes.

Platforms have anti-fraud teams. Report repeat clients with evidence. Accounts with a history of abusive complaints are penalized.