How to handle returns for a UK online shop

To handle returns for a UK online shop, set up one simple, repeatable process: the customer tells you they want to return, you give clear instructions and an address (or a label), you check the item when it arrives, and you refund within the legal deadline. Keep a record of every return and why it happened, then use that to cut future returns.

This guide covers the day-to-day process. If you need help with the wording customers see, read our guide on writing a returns policy.

The rules your process has to meet

As of October 2026, the main rules for goods sold online to UK consumers come from the Consumer Contracts Regulations 2013 and the Consumer Rights Act 2015. In plain terms:

• Customers can cancel within 14 days of receiving the goods, for any reason.
• They then have another 14 days to send the goods back after telling you.
• You must refund within 14 days of getting the goods back, or of them showing proof they’ve sent them, whichever comes first.
• The refund includes the original standard delivery charge, but not any extra they paid for a faster option.
• They pay return postage only if you told them so before they bought. Otherwise you pay.
• You can reduce the refund if the item was handled more than needed to check it, as you might in a shop.
• Faulty goods are different: under the Consumer Rights Act, customers generally have 30 days to reject them for a full refund, and you pay to get them back.

Step 1: make it easy to start a return

A return that’s hard to start becomes an angry email, or worse, a payment dispute. Give customers one clear route:

• A returns page that explains the steps in plain words.
• A simple form or email address to tell you they’re returning something.
• The order number and reason as the only required details.

Asking for the reason helps you improve, but don’t make it a hurdle. Customers cancelling within 14 days don’t have to give one.

Step 2: reply quickly with clear instructions

Within a working day if you can, send the customer:

• The exact address to send it to, which may be your fulfilment warehouse rather than your office.
• A returns label if you provide one, or which service to use if not.
• What to include, such as a note with their order number.
• How to pack it, especially for fragile items.
• When they can expect their refund.

Step 3: decide who pays return postage

This is a business choice, as long as your policy says it up front:

• Customer pays: cheapest for you, but may put some people off buying.
• You pay, with a prepaid label: easier for customers and can help sales, but costs you on every return.
• Mixed: free returns for faulty or wrong items (which you have to cover anyway), customer pays for change of mind.

If you offer a prepaid label, use a tracked service. It gives you proof of when the item was sent, which starts the refund clock.

Step 4: check the item when it arrives

Have one person (or your warehouse) check every return the same way:

1. 1Match it to the order and the customer’s return request.
2. 2Check it’s the right item and everything is included.
3. 3Note its condition: as new, opened, used, damaged or faulty.
4. 4Take a photo if anything is wrong. It helps if there’s a disagreement.
5. 5Decide: back into stock, sell as open-box, return to supplier, or write off.

If you’re deducting money because an item was handled more than needed, explain why and keep the photos. Only deduct for the loss in value, not as a penalty.

Step 5: refund on time, and say so

• Refund to the original payment method unless the customer agrees otherwise.
• Email them when the refund is issued, with the amount.
• Tell them how long it may take to show on their statement.
• Don’t wait for the end of the week to batch refunds if that pushes you past 14 days.

Step 6: keep a simple returns log

A spreadsheet is enough to start. For each return, record:

• Order number, product and date received.
• The reason given.
• The condition on arrival.
• The amount refunded, and the date.
• What happened to the item.

Look at it every month. Patterns jump out quickly: one product that keeps coming back faulty, one size that runs small, one courier that damages parcels.

Cutting returns at the source

The cheapest return is the one that never happens. Use your log to fix the causes:

• “Not as expected”: better photos, honest descriptions and clear measurements.
• Wrong size: a proper size guide, plus notes from reviews (“runs small”).
• Damaged in transit: better packaging or a different courier.
• Faulty: raise it with your supplier, and pull a batch if needed.
• Wrong item sent: check your picking process or speak to your warehouse.

Customer questions and reviews are a goldmine here too. If people keep asking the same thing before buying, answer it on the product page.

Returns with a fulfilment warehouse

If a warehouse sends your orders, agree how returns work before you need them: who checks them, how quickly, what condition grades they use, and how they report back. You still own the refund, so make sure you hear about each return quickly enough to refund on time.

It also helps to have emails and the order history together. On Merchella, the customer inbox shows each message with the order beside it, which makes return questions quicker to answer.

In short

Give customers one easy way to start a return, reply fast with clear instructions, check every item the same way and refund within 14 days of getting it back (or proof it was sent). Log every return and the reason, then fix the causes so fewer come back.