What Is The Average Rate Of Dropshipping Refund?

One of the stressful moments in a dropshippers’ life is if customers ask for refunds.

Not only that you may have to potentially give your customers’ money back, but you also have to deal with their complaints.

For today’s topic, I will talk about my take on handling customer complaints and satisfying what they need that may persuade them to cancel the dropshipping refunds they’ve requested in the first place.

So with that being said, let’s begin…

What is the Average Rate of Dropshipping Refund?

We have to bear two things in mind anytime we encounter refund request—

The first consideration is how much should you refund?

First and foremost is that you need to take a look at the status of your dropshipping business.

If there are only a few returns or if you can accommodate such losses—then you can maybe just return their money and prevent any situation from escalating.

Or you may negotiate with your customers if you are not willing to incur losses as a result of the refund.

My measuring stick in determining whether my online store is healthy or not is that, on average, the refund rate should only be 1%.

Let’s say, for example, that you’ve managed to make a sale of 1,000 items, so your store is considered healthy if you only have an average of 10 or fewer refunds.

You should start coming up with solutions as soon as it starts to go beyond the average refund request.

The second consideration is how we are going to deal with refund requests?

So there are several points we have to tackle here. The first one is financial status, and the second point involves your level of tolerance for the stress that comes with it.

As mentioned earlier, if your business doesn’t have the capacity to refund or you’re not willing to return the payment, then you can try talking with your customers and convince them not to refund the money.

You may negotiate by offering them discounts or giving them certain deals the next time they visit your online shop. It’s your call.

But the downside of this strategy is that you may have to deal with a lot of stress. You may hear sharp words that could pierce right into you.

The customer is always right, as the old saying goes.

This may be the case—remember that it’s all part of the business, and it is something that you have to take, right?

However, if you are unwilling to take the stress and have the capacity to deal with losses coming from the dropshipping refunds, then you can just give them back their money. Easy Peasy.

Final thoughts

I hope today’s blog has been enriching and helped you in dealing with dropshipping refunds.

Although it may feel unpleasant receiving a request to return your customers’ money, you can always try to reason with them and take back the request they previously asked for.

Or, you can just approve the return request to save yourself from the unnecessary stress that comes along with it. Anyway, tomorrow is another day.

So yes, I believe we’ve covered sufficient grounds here.

Thank you for the time, and I hope to see you on the next topics!



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