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USPS Returned Package to Sender – Refund or Cancel Order?
Summary: miriananely sought advice on handling a situation where a package was returned as undeliverable. They asked about the correct refund process, specifically whether to refund the shipping cost. disneyshopper advised to refund only the item price and not the shipping, suggesting to relist the item. mr_lincoln added that buyers lose their Money Back Guarantee when a package is returned, which may discourage disputes if only the item price is refunded. miriananely thanked both for their insights and appreciated the guidance.
Hi everyone, I need some guidance on the correct process for handling this situation.
I shipped an order to the exact address provided by the buyer at checkout. USPS was unable to deliver the package and the tracking shows “Return to Sender – Recipient Not Known at Address.”
The package has now been returned to me, and the tracking shows “Delivered to Original Sender.” I have the item back in my possession.
The item price was $89.90, and the buyer paid $7.09 for original shipping.
I would like to know the correct way to handle this from beginning to end:
Should I cancel the order or use “Send Refund”?
Am I required to refund the original $7.09 shipping charge even though the package was shipped and USPS returned it because the recipient was not known at the address?
If I am allowed to keep the original shipping cost, should I issue a partial refund of only the $89.90 item price?
If I use a partial refund instead of canceling the order, will the transaction remain completed, and could that cause any issues with my seller account?
Is there anything else I need to do with the order after issuing the refund?
I want to make sure I use the correct process and refund the buyer properly without unnecessarily losing the original shipping cost that was already used.
Thank you for your help!
miriananely
OP1 week agoThank you! I’m trying to refund only the item price, but I’m running into an issue with eBay’s refund system. When I enter the $89.90 item price as a partial refund, eBay automatically prorates the refund between the item and the original shipping. It shows $83.32 as the purchase price and $6.58 as shipping. I can’t find an option to refund the full $89.90 item price while excluding the $7.09 original shipping charge. Has anyone experienced this? Is there a different way to process the refund so I don’t have to refund the original shipping?
mr_lincoln
Mentor1 week agoHi @miriananely
In addition to what @disneyshopper has provided Buyers lose their eBay Money Back Guarantee protection when a package is undeliverable and returned to the Sender.
miriananely
OP1 week agoThank you! That’s very helpful to know. I wasn’t aware that an undeliverable package returned to the sender affects the buyer’s Money Back Guarantee protection. I appreciate the additional information!
mr_lincoln
Mentor1 week ago@miriananely
You are more than welcome ... while the Buyer can still pursue a dispute with their funding source I am not sure how that would go if they gave the wrong dimensions for delivery. If you refund the item price and not the shipping the Buyer may not bother pursuing a dispute.
disneyshopper
Mentor1 week agoWhen a package is undeliverable for any reason, you can refund the ITEM PRICE only. You can then relist the item, and if the buyer still wants the item,. s/he can repurchase and this time make sure that the SHIP TO address is correct.
miriananely
OP1 week agoThank you so much! This is exactly what I needed to know. So I should use “Send Refund” and refund only the item price, not cancel the order. I really appreciate your help!
miriananely
OP1 week agoThank you so much!