How to Handle Returns and Refunds for Your MakerPlace Store

There are a variety of reasons why a customer might want to return an item or get a refund. As much as we don’t want them to happen, it’s part of the buyer and seller experience. But look at it this way: it is also another touchpoint with your customers that can make a huge difference in how they feel about your shop — and whether they will continue shopping with you or recommend you to others. 

We’ll walk you through what you need to do to communicate your return policy, and how to handle returns.  

 In a nutshell: How Returns work at MakerPlace 

• You have 72 hours to respond to return requests per the MakerPlace seller agreement policy.   

• If you fail to respond to your customer within 72 hours, we may (at our sole discretion) allow the customer to return the item to you at a full refund in accordance with your return policy.   

• You are required to accept 95% of customer return requests if allowed by the return policy you selected for the product in order to remain in good standing as a seller.  

• Return Requests will automatically be processed if you don’t take action within 5 days of the request of a return. If you don’t process the return by approving or denying it, the system will just issue a refund with the return of the item not expected, even if the item may have been one that needed to be returned. The amount of the refund will be either drawn from the available balance in your store or charged to the credit card you have on file with us. 

• If you choose the return option of a refund with the item not needing to be returned, a refund will automatically process and be issued to the customer within 3-5 business days. 

• You will work directly with the customer regarding who will be responsible for paying for shipping and obtaining the shipping label. You can generate a return label if you are buying shipping labels on MakerPlace, and even include it in the package if you wish. You won't be charged for it until it is used.

• If you choose to refund with the expectation that the item is being returned, you must input the tracking number from the shipping label for the return. This is how you can track when to make the refund. You will then need to manually process the refund on the return once the item is physically returned or the tracking status for the package indicates it is on the way to you. (Note: you cannot see the retrun tracking information in the MakerPlace portal; you can only see that information via your shipping carrier’s tracking ID status). Once the tracking information indicates the return has been delivered back to you, you may process the refund and the refund will be issued to the customer within 3-5 business days. 

• Per our seller agreement, please remind your customer that any physical returns must be shipped back directly to you.   

• Advise your customer to get the product in the mail within seven days to help ensure a quick resolution for their order. 

Who Pays for the Shipping of the Return? 

MakerPlace does not provide shipping labels for returns, but you can generate one through your UPS + Michaels account in your seller portal, if you selected that shipping option. The cost of shipping needs to be covered by either you, the seller, or your customer.  

Who pays for shipping depends on a few things. A good rule of thumb is to simply do what you’d expect as a customer. If the product arrives damaged, not as expected (parts missing), it’s incorrect, or the product is not as expected, it’s best practice for you to pay for the shipping.  

If the shopper is simply changing their mind or if the customer ordered the wrong size, you should communicate with the customer how you would like to handle return shipping. In some instances, like these, the customer covers the cost of shipping. 

It can be beneficial to you to provide the return label to ensure you get it back and then deduct the cost of the shipping from the refund. This also ensures the refund doesn't process until the return tracking number shows as “Delivered.” You can also propose to split the cost. 

Whatever you do, be calm, professional and offer options. Customers shopping online have come to expect timely service because of their expectations and interactions with other e-commerce sites and often expect free returns, so handle these conversations with that in mind. 

Ok, now we’re ready to walk through the returns process. 

How To Process a Return

First, make sure your return policy is clear 

You must clearly communicate your return and refund policy. 

Returns are based upon your policy which you can select from a list of return policy options when establishing your store: 

• A recommended 60-day return window 

• A 30-day return policy

• A ‘no-return’ policy – all sales are final 

You can set a different policy for specific products, and the choices are the same. This is especially helpful when you have personalized items that can’t be resold.  

How to Handle Returns if Initiated by a Customer  

• Your customer will initiate a return either through their MakerPlace portal when logged in, or, if they bought the item when not signed in, via a link provided to them in the order confirmation email. Customers can also call Michaels customer care to have the return initiated for them. 
  

• They will have to navigate to the “Orders & Purchases” navigation on the left side of their account page and click on the “Order History” dropdown. Once there, they can click on the order they would like to return.  
  

• In the lower right area of the page, there is a section titled "Need Help?" Here, the buyer can click the "Return" button to start the return process. This will ask your buyer for the reason for the return request. You may ask them to include photos if the product is damaged, for example, and in the cases noted below, they will be required to include photos. NOTE: if the item has a no-return policy, this option will not be available.

• If the buyer selects "purchased by mistake," "changed mind," or "no longer needed" as the reason for return, a message will appear that the item needs to be returned. However, you can still choose if the item should be returned when you process the return. 

• A buyer will be required to add pictures to a return if the reason for return is "Item Does not Work," "Not as Described," and "Missing Parts or Accessories."
  

• When the Buyer has initiated the return, an email notification will be sent to you. The email will look like this: 
  
  
  

  

  
  
  In your Seller Dashboard, the item that is requested to be returned/refunded will appear under the “Returns and Disputes” tab and look like this: 

• Select the “Take Action on the Return Request” blue button. You will see the following information:
  
  

  • Buyer’s reason for return

  • The condition of the item (this will only populate for some selected return reasons. You won’t see a condition reason for “Did not Receive Item,” but you will for “Damaged Item.”)
    Your return request decision option.

  • There is also an option to refund the shipping and handling fee in the portal. 

  
  

• You can either approve or reject the return/refund.  
  Under the “Request Decision” section, select an option. You will then be prompted to indicate whether the item needs to be returned or not. Your options are:  
  

• Option 1: Approve Full Refund Option

• If the item needs to be returned, a box will pop up asking how you want the buyer to return the order.

•  If you want to pay for shipping, this allows you to input shipping label details such as the carrier and the tracking number and an option to upload the shipping label so the buyer will receive the label in their return email. Uploading a label will only accept a real label as it scans for a barcode. If you aren’t paying for the shipping on the return, simply proceed. Continue and review the details before submitting. 

• If you select this option for return and do not need the item shipped back (as if often the case with highly personalized or damaged items), then continue to the next screen to confirm what was selected and the amount you pay back (you can negotiate this individually with your customer) and then submit the return.  
  
  
  

• Option 2: Approve Partial Refund Option 

• A partial refund may happen for a variety of reasons 

• When selecting this option, a message will appear asking that you discuss with the buyer the reason why it would only be a partial refund. It is best practice to communicate with your customer via the messaging portal on MakerPlace.  

• You must indicate the reason for the partial refund as well as the amount that will be refunded.  

• This also has an option for refunding the shipping and handling fee.  

• This option also allows you to select if the item will be returned. This could be a good option for sellers wanting to charge a fee for the return shipping; they can partially refund by deducting the shipping cost and note this, while still requiring the item to be returned. Aside from this, the functionality of needing the item to be returned or not, uploading a label, and confirming the return are the same as previous.  
  
  
  
  

  

  
  
  

• Option 3: Reject Refund Option

• When selecting this option, a message in red will appear noting that rejecting a return request may affect your rating in reviews from customers. There are only 3 available drop-down selections for why you would reject a return: 

• Item was used
• Item was damaged
• Non-returnable item

Once one of these is selected, it will let you continue confirming the same. 

How Sellers Can Initiate a Refund

Though buyers typically initiate a return, they don’t always have to go through the steps listed above. Sometimes a buyer will message you in the message portal asking for a refund. Typical reasons can be because of a damaged item, an item was lost in transit by the shipping carrier or it was late in shipping. If a buyer messages you asking for a refund, you can initiate the refund by following these steps. 

• Click your "Orders" tab in the left navigation under "MY STORE" 

• Select the order for which you would like to initiate a refund.

• Once on the "Order Details" page, select all items on the order you would like to issue a refund

• On the "Refund Order" screen, you can select to “Refund Entire Order,” or choose a partial refund amount, i.e. an amount off an item or shipping

• Select a “Refund Reason” from the list of dropdown options 

• Select “Submit Refund” and a pop-up will appear to confirm the refund with the details of the reason you selected, the amount to be refunded to the customer, and any adjustments for commission and fees. 

• If all looks correct, select “Confirm Refund” to complete the process. 

How to Resolve Return or Refund Disputes 

We hope you can work with your customers to find a resolution should a dispute arise with a return.  

There are many reasons why a dispute may arise. For example, your customer could explain that the damage could have happened in transit. Or perhaps the package tracking indicated that an item was delivered but the customer never received it. Sometimes a buyer and seller don’t agree on the quality of product. 

Regardless of the reason for the dispute, follow these best practices for handling a dispute.  

• Listen, keep emotion out of it, and try to be your own customer: what would you expect in this situation if the roles were reversed? 

• Try to make reasonable efforts to find a resolution

• Be professional. You are a professional seller – how the conversation ultimately goes starts with how you communicate.  

• You can use the logic noted in “Who Pays for Shipping” section above in this article to help guide your decisions. 

How to Process a Dispute 

If you decide to reject a return/refund request, the buyer can select to dispute the decision. 

The customer navigates to their account dashboard and selects “Returns and Disputes” from the left-hand toolbar. They will see all returns they have requested, but they will want to select “View Details” next to the return that indicates “Return Declined.”  

Within this screen at the top there will be a red “Submit Dispute” button. Selecting this will redirect the customer to another screen where they can input the reason they are disputing the return. This has a drop down of dispute reasons, a notes section for any additional information, and the ability to upload any photos to assist in the dispute process.  

Once this has been submitted by the customer, you will receive an email letting you know a recent transaction was disputed by a customer. Click the button in the email go to the dashboard and take action. Once in your seller dashboard, you will select the “Returns & Disputes” tab on the left-hand toolbar. This will pull up any disputes, open or closed. 

Select the ”View Dispute” option in the top right-hand corner to see the dispute details. Click ”Dispute Summary” to review the details and then select "Review Request." 

Once you've selected "Review Request,” you will get a notification about the dispute. This will also change the option at the bottom from “Review Request” to “Make Decision.” You can also make comments and attach photos so you can provide documentation on why they may not be approving the return/dispute.  

After selecting “Make Decision” it will pull a new screen up that will allow you to offer a partial refund, a full refund or reject the dispute.  

• If you opt to do a partial or full refund, it will allow input for the refund amount, if the item needs to be returned, if the refund will include the shipping fee, and the reason for the decision.  

• If selecting to reject the refund, all options will be greyed out besides the reason for the decision. 

• After selecting “Make Decision” it will pull a new screen up that will allow you to offer a partial refund, a full refund or reject the dispute.  
  

Rejecting a refund will also prompt a checkbox for you to acknowledge that this may impact their stores' rating and all decisions are final.  

Rejecting the dispute will allow a 7-day response period before the dispute is automatically closed. If the customer still wishes to dispute this further, they can navigate back to their returns and disputes. They will select the return and then select view dispute once more. Once here, the customer can now see any actions taken on the dispute and when they were taken. The customer can also select to reject or accept the offer. 

If the customer accepts the offer no further action will be taken. If the customer rejects the offer, it will then be escalated to MakerPlace customer support for further assistance.   

What to do When an Order was Delivered but Not Received, According to Your Customer

Whether due to an issue with the shipping carrier, package theft, or other reasons, despite all best intentions, a package on rare occasion does not make it to its destination. When a customer reaches out with this situation, be sure to keep all communication with your customer in the messaging system in your seller dashboard. Double check the shipping address with them. Ask them to check their property, with neighbors, etc. Then, ask them to check with the shipping carrier, or you can check on their behalf. If that does not resolve the issue, they may ask for a refund. If you are not responsive to their requests, their inquiry will be escalted to seller support which could affect your standing as a seller on MakerPlace.

One way you can protect yourself from losing revenue from lost packages is to consider adding package insurance when buying a label on MakerPlace or elsewhere. When you purchase shipping labels through MakerPlace, insurance costs are based on how much you want to insure and will be displayed alongside the shipping cost in your purchase summary before you buy your label, itemized as “Shippo Total Protection” as in the screen shot below. Insurance coverage is powered by Cover Genius rather than USPS. When using UPS on MakerPlace, UPS will cover up to $100 in declared value liability at no charge. If your package is valued more than that, you may want to buy additional coverage.

To offer the customer a full or partial refund, start the refund process here.

How are Refunds Made for Products Sold During a MakerPlace-Funded Sale?

You will get refunded the full amount, including what MakerPlace covered in the discount off. Click here to learn how refunds are handled for items sold during MakerPlace-funded sales.

Need More Help? 

How Your Return Policy Could Boost Your Sales

Set Your Return Policy