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Setting: Handling / Restocking fee

Charge a fee on returns to offset handling and processing costs.

The default handling or restocking fee applied to returns.


Where to find it

Settings > Returns > Policies, under Return Policies.

[Screenshot: Policies tab — Handling / Restocking fee type and percentage fields]


What this is

Type

How it's calculated

None

No fee charged

Percentage

A share of the value of returned goods

Fixed amount per item

A flat fee for each item returned

Fixed amount per return

A flat fee once per return, regardless of item count

When a type is selected, a second field appears for the amount or percentage.

How the fee is collected — deducted from the refund or charged by card at submission — is controlled by Deduct fees from resolution on the Setup tab.


What the customer sees

The fee appears in the financial breakdown on the review screen before the customer submits.

[Screenshot: Return portal review screen showing a restocking fee line item]


Considerations

  • Percentage scales with order value.

  • Fixed per item tracks actual handling cost, which is similar for cheap and expensive items — but is proportionally large on low-value returns.

  • Fixed per return doesn't penalize returning several items at once — relevant for customers who order multiple sizes intending to keep one.

  • Restocking fees reduce return volume, and can also affect repurchase behavior. Targeted fees via Exceptions are an alternative to a blanket fee.


Common exceptions

  • No fee when the return reason is a defect or wrong item

  • No fee when the customer chooses store credit or an exchange

  • Higher fee on categories that are expensive to inspect and restock


Related settings

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