Best practices for handling Returns And Exchanges on Amazon using a 3PL

Red Stag Fulfillment reports that the probability of customers returning online purchases is over two times higher.

Return Graphic online vs in store

So if you're a seller on Amazon (or Marketplaces, In General) who is weary of managing exchanges and returns, utilizing 3rd party logistics (3PL) will be a lifesaver. Don't let worries hold you back — our collection of proven best practices can help you move forward with confidence and ease.

Clear and Concise Return Policy

Best practices for handling Returns And Exchanges on Amazon using a 3PL - clear and concise return policy

Let's discuss how crucial it is to have a clear and concise return policy! Having a solid approach in place is essential when handling returns and exchanges. Your return policy should be simple to grasp and show your clients how returns and refunds work. It will lessen the chance of future misunderstandings or miscommunication.

The return window, restocking fees, and who pays the return shipping charges are all essential components of a solid return policy. The restrictions that products must meet to be returned, such as being unused and in the original packaging, should also be clear.

By openly and honestly communicating your return policy, you can cultivate a sense of transparency and integrity; this is where a 3PL can assist.

Here are some of its top benefits:

  1. Focus on core business activities – They can handle time-consuming and resource-intensive tasks such as warehousing, inventory management, and order fulfillment.
  2. Scalability – By leveraging the proper infrastructure and resources, a 3PL can help you stay agile and responsive to changing demands. It allows you to adjust your operations without incurring high fixed costs.
  3. Reduced costs – By outsourcing logistics to a 3PL provider, you can benefit from economies of scale and save money on warehouse space, labor, equipment, and transportation.
  4. Faster delivery times – They have the expertise and resources to optimize the logistics process, resulting in quicker and more reliable delivery times. It can lead to higher customer satisfaction and repeat business.
  5. Access to technology – Many 3PL providers have invested heavily in technology and offer advanced solutions like real-time inventory tracking, data analytics, and automated order processing. These tools can help you optimize your logistics operations and improve overall efficiency.

Therefore, invest the time necessary to develop a concise and practical return policy for your company and partner up with the right 3PL. Clarity will be welcomed by your clients, and over time, it will be simpler for you to handle returns and exchanges.

Streamlined Communication

Best practices for handling Returns And Exchanges on Amazon using a 3PL - streamlined communication

Communication is essential when processing returns and exchanges; a well-organized conversation sets you apart from other online sellers who need to communicate better. Keep the dialogue flowing and address concerns proactively. Create a culture of transparency and accountability.

One popular method is an automated email system to alert clients during the return or exchange process because it simplifies communication. Your customers can receive updates on the return's progress, confirmation of the return request, and notice of any refunds or exchanges.

Automating these emails save time and guarantee that your clients are always informed of their exchange or return status. You can use tools such as Routific- Track-Pod, OnFleet or Route4Me.

Email delivery notifications Track POD

Additionally, getting committed customer support personnel to respond to inquiries and offer assistance is another essential component of seamless communication. Having a knowledgeable staff helps ease any worries your clients may have.

You can provide customers with a satisfying experience and foster brand loyalty by being proactive and responsive.

Fast and Accurate Inspection and Processing

Best practices for handling Returns And Exchanges on Amazon using a 3PL - fast and accurate inspection

Customers want to know that their requests are handled swiftly and effectively, and mistakes can result in annoyance and unfavorable evaluations. Because of this, a quick and precise inspection and processing system must be in place.

Utilizing the proper equipment and technology is crucial to quick and accurate processing. The procedure can be sped up, and errors can be minimized with tools like barcode scanning scanners and automated inventory management software such as:

Also, a specialized group or partner is needed to manage the examination and processing of returns and exchanges to make it more seamless. You can guarantee that returns are processed swiftly and accurately by contracting this work to a 3PL.

A quality 3PL will be equipped with the procedures and systems needed to examine returned goods promptly, identify the cause of the return, and handle any necessary swaps or refunds.

You can give your consumers a satisfying return and exchange experience while prioritizing speed and accuracy while ensuring your company's smooth operation.

Proper Disposition of Returned Items

Best practices for handling Returns And Exchanges on Amazon using a 3PL - proper disposition of returned items

An essential but frequently forgotten step in returning and exchanging procedures is appropriately removing returned goods. To prevent waste and lessen the environmental impact, deciding how to dispose of things that customers return correctly is crucial.

Restoring and reselling returned goods as refurbished or open-box goods is one way to handle the situation. Doing this may reduce waste and increase your company's revenue. If you're using FBA, this is normally automated using Amazon Renewed.

Another choice is to give your unwanted stuff to nonprofits or philanthropic groups, which can support individuals in need. You can automatically do this using Amazon FBA.

If neither of these possibilities is practical, it's crucial to get rid of returned goods in an eco-friendly manner. It can involve recycling things or getting rid of them by local laws.

You can reduce waste and show that you care about sustainability by disposing of returned goods adequately. It can establish your brand as a trustworthy and socially conscious company in the eyes of your customers.

amazon renewed

Timely Refunds and Exchanges

Best practices for handling Returns And Exchanges on Amazon using a 3PL - Timely refunds and exchanges

Refunds and exchanges must be processed quickly to keep customers happy and confident. Customers anticipate that their refund or exchange requests will be handled promptly and effectively. Delays or mistakes may cause annoyance and unfavorable reviews.

It's critical to have a defined procedure to handle these requests. It involves establishing accurate deadlines for processing refunds and exchanges and utilizing automated tools to manage requests promptly.

One more thing, accuracy is equally as important as speed. Ensure your team or 3PL partner has the equipment to accurately process returns and exchanges, such as inventory management software and barcode scanning devices.

You may show dedication to customer satisfaction and earn the audience's trust by prioritizing prompt refunds and exchanges. Positive feedback and repeat customers are necessary for long-term success in the Internet market, which can result in both.

Robust Analytics and Reporting

Best practices for handling Returns And Exchanges on Amazon using a 3PL - Analytics and reporting

Any business that wants to enhance its return and exchange process must have robust analytics and reporting capabilities. You may pinpoint problem areas and streamline operations by monitoring metrics like return rates, causes, and processing times.

Consider implementing automated reporting tools to gain deeper insights into your business's performance. It's an effective strategy to generate real-time data on your most important KPIs.

You can use this data to make data-driven decisions on enhancing your return and exchange process by identifying trends and patterns.

Creating consumer feedback and reviews is part of analytics and reporting. Customers who have exchanged or returned goods can provide insightful information about what is functioning well and what needs improvement.

Giving analytics and reporting top priority can consistently enhance your return and exchange procedure, resulting in higher customer satisfaction and more sales on online shops like Etsy. Using the data, you can gain a competitive advantage and make informed decisions that drive success.

It's even recommended to talk to an ecommerce and Amazon consultant with knowledge and experience in this field.


Managing returns and exchanges on online stores like Amazon can take time and effort. Still, by employing a 3PL and these best practices, you can ensure that your clients have a great experience and that your business works efficiently.

Remember that a winning return and exchange process requires these strategies:

  • Having a clear and concise return policy.
  • Streamlined communication.
  • Fast and accurate inspection and processing.
  • Proper disposition of returned items.
  • Timely refunds and exchanges.
  • Robust analytics and reporting.

These strategies can be the key to winning customers' confidence, optimizing operations, and achieving success in the highly competitive online marketplace.

More posts

About the author

Avatar of Jordi Ordonez
Jordi Ordonez
Amazon and ecommerce Consultant at JordiobDotCom | Website

I work as an independent eCommerce and Amazon consultant.

Estrella Damm, Intersport, Bella Aurora, Lladró, Textura Interiors, Nice Things Palomas, Castañer, Due-Home and many other clients.

Lecturer & Teacher
I teach and have been a speaker at: Meet Magento, Prestashop, Prestashop Day, SEMRush, Cambra de Comerç Barcelona, ​​ClinicSEO, Ecommbeers, Ecommbrunch,, Ecommfest, EOI, ESIC-ICEMD, Foxize, Generalitat de Catalunya, Inesdi, Quondos and The Valley.

In addition, I have done in-company trainings for brands such as Orange and Adidas.

Finally, I collaborate writing articles for Helium 10, Carbon 6, Shopify, SEMRush, Prestashop´s official blog, Brainsins, La Vanguardia,, Marketing4ecommerce and other blogs and media.

Social profiles
- LinkedIn
- Twitter
- Wikipedia
- Youtube
- Quora
- About Jordi Ordonez