Return Shipping Cost
What you pay to get the product back when someone returns it. A return label typically runs $5-12, and you almost never recover this cost. It's a hidden surcharge on top of the refund and the non-refundable payment fee.
Example
Customer returns a $75 order. You refund $75, eat the $2.18 payment fee (not refundable), and pay $8 for the return label. The real cost of this return is $85.18 — 13% more than the refund amount
Why It Matters
Return shipping is a double hit — you pay to send the product out, then pay again to get it back. For merchants with 10%+ return rates, this alone can wipe out 2-3% of net margin.
Pro Tip
Charge a restocking fee or use return labels that deduct from the refund. You'll reduce frivolous returns by 15-20%.
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