How to Display Cost of Returns and Taxes on Your Returns Page
Plans: All plans Platforms: Know more
Shoppers always want to check the full breakdown of the total amount before making a purchase because it gives them clarity on product pricing, shipping charges, and taxes. It helps them see the total amount that will be refunded or they need to pay while returning or exchanging a product to prevent any money-related disagreements.
You can easily show a breakdown of the total amount on their returns page created via AfterShip Returns.
In this article, we will discuss:
Configure the cost of returns
Percentage of estimated label fee
Configure returns item tax
If you only want to show the cost of returns to customers, follow these steps:
Go to Return routing rules in your AfterShip Returns admin
Select the return zone and the consequent routing rule you'd like to edit. Click the {...} icon and choose Edit
Scroll down to the Return shipping methods section and select the return method for which you'd like to set the cost of return
For all the supported return methods, you can either the set the cost of return as Free, or Flat rate, Percentage of return value, or Percentage of est. label fee.
Each method offers a different approach to handling return shipping costs, depending on the seller’s policy and how they want to manage returns.
Just expand the dropdown under Cost of return and select one of the options.
Add the currency and cost of return value if you have selected one of the supported return cost method.
You can also choose not to display the cost of return.
Click Save once done.
For example: A customer wants to returns an item he originally paid $50 for. You have configured to charge customer 5% of return value as cost of return which amounts to $2.50 of the total return value. The total refund customer is eligible for is $47.50 after deducting cost of return ($50-$2.50).
For Ship with a return label shipping method, you can opt to set the cost of return as the percentage of estimated label fee
Set up a carrier account for return label generation on the Shipping page.
Carrier must have rate API for label cost estimation.
Configure the carrier account for return label generation under Prepaid return labels section.
Select Percentage of est. label fee as cost of return type
Update the percentage of estimated label fee you would like to charge as cost of return. It can be any number between 1% to 200%
Set a maximum cost of return so that in case the estimated label cost is too expensive, your customer will not be charged more than the maximum cost of return (optional)
Set up a fallback value to charge your customer when carrier fails to return estimated label cost in their API (optional)
When Percentage of est. label fee is selected as the cost of return, in the Return request submission page. The cost of return will be calculated in real-time.
If estimated label fee fails to be returned by the carrier and merchant haven't setup a fallback value to charge as cost of return, our system will ask the customer to refresh the page or change to another return method.
You can show the cost of returns along with the taxable amount if you follow the aforementioned steps and make a minor change in your Shopify admin as explained below:
Go to Settings in your Shopify admin.
Scroll down to Taxes and duties.
Look for Global settings and uncheck the Include sales tax in product price and shipping rate option if it’s checked. This way customers would be able to see taxes levied on the returns separately.
Go to Products in your Shopify admin. Select any product and move down to Variants section.
Click on the variant to open the variant configuration window.
Move to the Pricing section of the variant and check the Charge tax on this product option.
Click Save
Now, this is how your returns page will look to customers:
The Do not display, Flat rate, and Free cost of return options are available in all plans
The Percentage of est. label fee cost of return is available for Premium plan users
Overview
Shoppers always want to check the full breakdown of the total amount before making a purchase because it gives them clarity on product pricing, shipping charges, and taxes. It helps them see the total amount that will be refunded or they need to pay while returning or exchanging a product to prevent any money-related disagreements.
You can easily show a breakdown of the total amount on their returns page created via AfterShip Returns.
What you'll learn
In this article, we will discuss:
Configure the cost of returns
Percentage of estimated label fee
Configure returns item tax
Configure the cost of returns
If you only want to show the cost of returns to customers, follow these steps:
Go to Return routing rules in your AfterShip Returns admin
Select the return zone and the consequent routing rule you'd like to edit. Click the {...} icon and choose Edit
Scroll down to the Return shipping methods section and select the return method for which you'd like to set the cost of return
For all the supported return methods, you can either the set the cost of return as Free, or Flat rate, Percentage of return value, or Percentage of est. label fee.
| Cost of Returns Method | Description | Example |
|---|---|---|
| Free Return | The return shipping cost is covered by the seller, at no cost to the buyer. | Seller pays for all return shipping, buyer does not pay any fees. |
| Flat Rate Return | A fixed amount is charged for return shipping, regardless of the return value. | $5 flat fee for return shipping, regardless of the order total. |
| Percentage of Return Value | The return cost is calculated as a percentage of the value of the returned item. | 5% of the total value of the returned items is deducted for return shipping. |
| Percentage of Estimated Label Fee | The return cost is based on a percentage of the estimated cost of the return label. | If the return label costs $10, and the return label fee is 20%, the return cost is $2.( know more) |
Each method offers a different approach to handling return shipping costs, depending on the seller’s policy and how they want to manage returns.
Just expand the dropdown under Cost of return and select one of the options.
Add the currency and cost of return value if you have selected one of the supported return cost method.
You can also choose not to display the cost of return.
Click Save once done.
For example: A customer wants to returns an item he originally paid $50 for. You have configured to charge customer 5% of return value as cost of return which amounts to $2.50 of the total return value. The total refund customer is eligible for is $47.50 after deducting cost of return ($50-$2.50).
Percentage of estimated label fee
For Ship with a return label shipping method, you can opt to set the cost of return as the percentage of estimated label fee
Set up a carrier account for return label generation on the Shipping page.
Carrier must have rate API for label cost estimation.
| Supported carriers |
|---|
| Aramex |
| Australia-post |
| Canada-post |
| DHL Express |
| Apex |
| Endicia |
| FedEx |
| FedEx-SmartPost |
| GLS-us |
| Hong-kong-post |
| New-Zealand-post |
| Pitney-Bowes |
| Sendle |
| Star-track |
| TNT |
| UPS |
Configure the carrier account for return label generation under Prepaid return labels section.
Select Percentage of est. label fee as cost of return type
Update the percentage of estimated label fee you would like to charge as cost of return. It can be any number between 1% to 200%
Set a maximum cost of return so that in case the estimated label cost is too expensive, your customer will not be charged more than the maximum cost of return (optional)
Set up a fallback value to charge your customer when carrier fails to return estimated label cost in their API (optional)
Customer experience
When Percentage of est. label fee is selected as the cost of return, in the Return request submission page. The cost of return will be calculated in real-time.
If estimated label fee fails to be returned by the carrier and merchant haven't setup a fallback value to charge as cost of return, our system will ask the customer to refresh the page or change to another return method.
Configure returns item tax
You can show the cost of returns along with the taxable amount if you follow the aforementioned steps and make a minor change in your Shopify admin as explained below:
Go to Settings in your Shopify admin.
Scroll down to Taxes and duties.
Look for Global settings and uncheck the Include sales tax in product price and shipping rate option if it’s checked. This way customers would be able to see taxes levied on the returns separately.
Go to Products in your Shopify admin. Select any product and move down to Variants section.
Click on the variant to open the variant configuration window.
Move to the Pricing section of the variant and check the Charge tax on this product option.
Click Save
Now, this is how your returns page will look to customers:
Supported plans
The Do not display, Flat rate, and Free cost of return options are available in all plans
The Percentage of est. label fee cost of return is available for Premium plan users
Updated on: 18/11/2024
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