Streamlining returns with prepaid or scan-based return labels

• 4 min read

Returns are inevitable in ecommerce. While returns can be a hassle, having an easy and convenient return process is key for retaining customers. Research shows most online shoppers will check a store’s return policy before buying. Offering free and simple returns can give your business a leg up on competitors.

Ever wondered how your competitors are able to include a label for customer returns in their shipping boxes? This article details the software used and explores best practices for handling online returns using prepaid return labels from UPS, USPS, or FedEx.

Why free returns matter

  • 75% of consumers expect free return shipping when shopping online.

  • Free returns encourage customers to buy with confidence, knowing returns will be easy if needed.

  • Offering free returns builds trust and gives your store an advantage over competitors.

  • Yes, free returns cut into profits. But they often result in more sales and happier repeat customers.

Providing prepaid return labels

Your goal is to make returns as easy as possible for the customer. There are two main ways customers can get prepaid return labels:

Merchant Provides the Label

  • The merchant includes a scan-based label in the box with the customer’s order. This is considered a pay-on-use return label, also known as a scan-based return label. The merchant is only charged when the label is used. You don’t have to pay unless the label is scanned by the shipping carrier.

  • The store creates a prepaid return label and emails it to the customer after approving the return request. This will require some coordination with your support staff and customer. Customers will need a printer and tape to attach their labels.

Customer creates the label

  • For partial returns where item weight changes, the store may ask the customer to create the return label themselves. The store reimburses the label cost by deducting it from the refund amount or provides store credit. Not an ideal customer experience and can create unnecessary support overhead, but you may find this to be a preferable workflow for your ecomm store.

  • Customers generate prepaid labels through the carrier website or provided by the store’s shipping system. This is similar to the system Amazon has implemented and something customers are generally accustomed to. You can replicate this for your own ecommerce store by using a feature offered by ShipStation who offers a branded returns portal for your returns management. This is a really great feature that a lot of the other shipping software providers don’t have.

shipstation returns portal

Save on return shipping

Offering free returns means you need affordable shipping. If you are not able to manage free returns, we include some additional tips to reduce costs:

  • Leverage USPS discounts: USPS offers major discounts off retail rates through software like ShipStation. They also offer discounts on UPS and DHL Express of up to 88% off.

  • Charge actual label costs for partial returns: Deduct the exact prepaid label price from the refund when weight changes. This can be done using a ShipStations portal as mentioned above, or it can be done manually in your shipping software. It isn’t as easy to do if you are mailing scan-based return labels, unless you are sending individual parcels for each item.

  • Set order minimums to qualify for free returns: Require a certain order value to get free return shipping.

  • Offer refunds minus original shipping costs: Don’t refund original shipping fees to help offset return costs.

Streamline returns with shipping software

Shipping software such as ShipStation or ShippingEasy simplifies returns through automated workflows and tracking:

  • Generate prepaid return labels for any carrier in a few clicks. Send the label via email directly through the shipping software. No need to download and paste into your email client.

  • Send customers prepaid return labels or self-service print options (using ShipStation’s returns portal).

  • Automatically notify customers when you receive the return.

  • View return status alongside outbound shipments in one dashboard.

With shipping software such as ShipStation, you can offer fast, free returns to attract and retain more customers. Convenience encourages repeat purchases and brand loyalty. Take the headache out of returns and maximize sales with automated shipping processes.