Guide To Managing Returns And Refunds As A Shopee Seller

Table of Contents

Get the latest e-commerce industry news, best practices, and product updates!

Reading Time: 11 minutes

As a Shopee seller, navigating the complexities of returns and refunds is crucial to maintaining a good seller rating on the platform, resulting in a successful e-commerce business. E-commerce returns and refunds play a pivotal role in shaping customer satisfaction, trust, and the overall success of your brand on the Shopee platform. 

This comprehensive guide is designed to equip you with the knowledge and strategies necessary to manage returns and refunds effectively. From understanding Shopee’s policies to setting up your own, handling the returns process, and preventing returns through proactive measures, this guide provides valuable insights to ensure smooth operations and maintain strong customer relationships.

Introduction To Returns and Refunds

E-commerce returns and refunds are not just transactional processes; they are integral to customer satisfaction and significantly impact a brand’s success story on platforms like Shopee. As a Shopee seller, understanding the state of returns and refunds is essential. It plays a pivotal role in alleviating shoppers’ apprehensions when dealing with a new brand. In this guide, we’ll delve into the world of managing returns and refunds, equipping you with the knowledge and strategies needed to navigate this aspect successfully.

Returns and refunds, when managed effectively, help create a trust-building mechanism for new shoppers on the Shopee platform. They provide a safety net, assuring customers that in case their purchase doesn’t meet expectations, they have the option to return or request a refund. This assurance can be a decisive factor for potential buyers, especially when they are exploring products from a new shop on the platform. Managing returns and refunds prudently sets the stage for a positive shopping experience,encourages brand loyalty and keeps your seller ratings balanced.

Understanding Shopee’s Returns and Refunds Policies

To excel as a Shopee seller in managing returns and refunds, a comprehensive understanding of Shopee’s policies is crucial. Shopee’s Return and Refund Policy provides the framework for these processes, ensuring a fair and consistent experience for both sellers and buyers. 

When buyers raise a query for return/refund, they will be given two options:

  • Refund only
  • Return and Refund

Refund only:

Sellers can choose to offer refunds when the price of returning the product is greater than the value of the product. Sellers can choose between offering a full refund and a partial refund.


This is when buyers can return the product and either choose to buy another one or get a refund. Shoppe lets sellers process refunds either before the returns reach them or after.

Who handles refunds on Shopee?  

Refunds are processed either by the Sellers or by Shopee if the product is covered by the Shopee Guarantee Program. If the buyer isn’t satisfied with the quality of the returned product or the situation surrounding a processed refund, they can raise a dispute and receive compensation for the same.

Eligibility Criteria for Returns and Refunds

Sellers must acquaint themselves with the eligibility criteria for returns and refunds set forth by Shopee. Shopee lists out the following conditions where returns and refunds are acceptable: 

  • Order not delivered
  • Missing quantity/accessories
  • Empty parcel
  • Wrong product shipped
  • Counterfeit product
  • Item doesn’t fit the buyer
  • Change of mind
  • Faulty/damaged product
  • Spilled content
  • Expired Product

These criteria encompass factors such as product condition, return reason, and timelines. By aligning your return and refund processes with Shopee’s criteria, you can mitigate disputes and create a smoother experience for your customers.

Timelines and Conditions for Requesting Returns

Understanding the timelines and conditions for return requests is essential for efficient management. Shopee specifies the time frames within which buyers can request returns, as well as the conditions that products must meet to be eligible for return. 

  • For partial refunds, sellers and buyers must agree on chat before processing the refund. Sellers and buyers have 1 calendar day to accept the terms/offer.
  • Sellers have to wait 5 calendar days from the date of delivery for buyers to ship the return.
  • Sellers have a maximum of 2 calendar days to process return and refund requests.

Staying informed about these parameters ensures you can facilitate or reject return requests accurately and in compliance with Shopee’s policies.

Setting Up Your Returns and Refunds Policies

Crafting a well-defined return and refund policy is the cornerstone of effective returns management on Shopee. As a seller, you have the flexibility to establish your own policy within the framework of Shopee’s guidelines. Your policy should encompass crucial aspects such as the reasons for returns, the conditions under which refunds are provided, and any special terms that align with your product offerings.

Communicating Policies Clearly to Customers

Clarity and transparency are key when communicating your policies to customers. Your return and refund policy should be easily accessible and prominently displayed within your Shopee store. It’s advisable to include this information in your product listings, store description, and any additional areas where customers are likely to seek guidance.

Handling Different Types of Products and Return Scenarios

Products vary, as do the reasons for returns. Returns and refunds for damaged products, wrong products and broken packaging will affect seller’s nonfulfillment rate on Shopee. Your policy should be adaptable to handle various product categories and return scenarios. Different products may have unique conditions for returns and refunds. For example, while apparel items may allow returns for sizing issues, electronic goods might have specific criteria regarding functionality. Tailoring your policy to accommodate these differences can streamline the process and enhance customer satisfaction.

Managing the Returns Process Efficiently

Efficiently managing returns begins with the reception and inspection of returned items. Upon receiving a returned product, promptly examine it to ensure it meets the criteria outlined in your return and refund policy. This step involves checking for any damage or discrepancies, verifying if the item matches the return reason, and confirming its eligibility for a refund or replacement.

Processing Refunds and Replacement Requests

Once you’ve inspected the returned item and verified its eligibility, the next step is to process the refund or replacement request promptly. Post which, you can decide if the returned product can go back into stock or should be removed. Also

Record-Keeping and Documentation

Effective returns management requires meticulous record-keeping and documentation. Maintain detailed records of return requests, including communication with customers, inspection results, refund processing, and any related correspondence. This documentation serves as a valuable reference in case of disputes or inquiries and helps in maintaining transparency and accountability.

Handling Customer Inquiries and Disputes

Exceptional customer service is the bedrock of successful returns and refunds management on Shopee. Sellers must be prepared to address customer inquiries and disputes promptly and professionally.

  • Prompt Communication: Respond to customer inquiries and concerns swiftly. A prompt response can often resolve issues before they escalate.
  • Resolution Assistance: If a customer raises a dispute or expresses dissatisfaction, work with them to find an amicable solution. This may involve offering a replacement, processing a refund, or addressing specific concerns.
  • Shopee’s Dispute Resolution: In cases where sellers and buyers cannot reach a resolution independently, Shopee offers a dispute resolution process. Sellers should be prepared to engage in this process and provide the necessary information.
  • Professionalism and Courtesy: Maintain a professional and courteous demeanor in all interactions. Even in challenging situations, a respectful and empathetic approach can go a long way in diffusing tensions and preserving customer satisfaction.

Successfully managing customer inquiries and disputes not only resolves immediate issues but also builds trust and fosters positive relationships with customers. This, in turn, can enhance your reputation as a seller on Shopee.

Processing Refunds

Processing refunds is an integral part of managing returns and refunds on Shopee. This section delves into the intricacies of refund processing and the key factors to consider:

Initiating Refunds on Shopee

Shopee offers tools and features that allow sellers to initiate refunds directly through the platform. Understanding how to navigate this process is essential. Whether it’s a full refund or a partial one, sellers must be adept at using Shopee’s refund initiation system to provide a seamless experience for customers.

Timelines for Refund Processing

Timeliness is of the essence when it comes to refund processing. Shopee sets specific timelines for initiating refunds, namely 7-14 working days, and sellers should adhere to these to maintain customer trust. Delays in refund processing can lead to customer dissatisfaction and disputes, which are best avoided through prompt action.

Managing Partial Refunds and Deductions

Efficiently managing refunds on Shopee involves a strategic approach through the platform’s dedicated tools. Sellers can view and process refund requests seamlessly in the Shopee Seller Center. Navigating to the “Orders” section provides a comprehensive view of incoming requests, allowing sellers to sort and prioritize them for better visibility. Initiating refunds can be done directly within the order details, ensuring a straightforward process. 

Timeliness is crucial, and Shopee sets specific timelines for initiating refunds to maintain customer trust. For partial refunds or deductions, sellers should calculate and manage them based on product condition and return policy terms, promoting a smooth and satisfactory customer experience.

Preventing Returns and Refunds Through Proactive Measures

While effective management of returns and refunds is vital, it’s equally important to implement proactive measures that can prevent such situations from arising in the first place.

A. Quality Control and Product Descriptions

Quality control and accurate product descriptions are your first line of defense against returns and refunds. Ensure that the products you list on Shopee match their descriptions and meet quality standards. Clear, detailed, and honest product descriptions can help manage customer expectations and reduce the likelihood of returns due to misunderstandings.

B. Customer Support and Pre-Sale Information

Provide robust customer support and pre-sale information in the product description. Respond promptly to customer inquiries and offer comprehensive pre-sale assistance. This can help customers make informed purchasing decisions, reducing the chances of post-purchase dissatisfaction.

C. Continuous Improvement in Product and Post-purchase experience

Regularly assess and improve your product quality and customer satisfaction. Seek feedback from customers and use it to refine your offerings and services. Ensure that you partner with a reliable logistics and fulfillment provider to oversee product quality while picking and packing, avoid shipping the wrong product, and ensure all the items of the order are packed and dispatched from the warehouse.  This iterative approach can lead to a better customer experience and fewer returns.

D. Leveraging Returns Management to Win Customers

Returns management isn’t just about handling disputes; it’s also an opportunity to win more customers or turn them into repeat buyers. By providing hassle-free and customer-centric returns processes, you can leave a positive impression on buyers even when they face issues. This can lead to customer loyalty and increased sales in the long run.


Effectively managing returns and refunds is not merely about addressing issues; it’s about fostering trust, customer loyalty, and continuous improvement. By adhering to Shopee’s policies, setting up clear policies, and implementing proactive measures, you can reduce the frequency of returns and enhance your reputation as a trusted Shopee seller. 

Remember, returns and refunds can be opportunities to win over customers, turning challenges into successes. As you master these aspects of e-commerce, you’ll be well-positioned to thrive on Shopee and create a positive shopping experience for your customers.

Experience fulfillment by Locad today!

Frequently Asked Questions

What is the return refund flow on Shopee?

The Philippine Double-Day Sales are highly anticipated shopping events, significant for consumers due to massive discounts and deals offered by rThe return refund flow on Shopee typically involves the customer initiating a return request, the seller acknowledging the request, inspecting the returned item, and then processing a refund if the return is approved.etailers.

Who is responsible for the return shipping cost?

In many cases, the customer is responsible for the return shipping cost on Shopee.

Is it free to return and refund in Shopee?

While some return and refund cases on Shopee may be free, it depends on the specific circumstances, such as the reason for the return and the seller’s return policy.

 Do I need the original packaging to return to Shopee?

While it is helpful to have the original packaging for a return on Shopee, it may not always be a strict requirement. The specific return policy of the seller should be checked for packaging details.

What is the difference between return, refund, and exchange?

The primary difference between return refund and exchange on Shopee is that a return refund involves receiving a refund for the returned item, while an exchange entails receiving a replacement or an alternative product in place of the returned item.

Experience fulfillment by LOCAD

Grow your business through Locad’s simplified and automated fulfillment solution

  • Unlimited and scaleable warehousing
  • Pay only for what you store
  • No hidden fees or lock-in periods
  • Zero inbound costs
  • Wide integration with marketplaces
  • Automated logistics and delivery
Get the latest e-commerce industry news, best practices, and product updates!

Don't miss out on the latest news!

Get the latest industry news, best practices, and product updates!

Up to $250K USD Credits for Locad Customers!

Sign up today and accelerate your growth with Locad’s Partners. Unlock deals across SaaS, Agencies and more.

Exclusive benefits to ace your e-commerce game this 2023 with Locad’s desk calendar!