When a package comes back to you marked “return to sender”, it is not lost: it is back in your hands. The question is why it came back and what you offer the customer next. Most stores contact the customer, offer a reship or a refund under a clear policy, and do not treat it as a shipping protection claim.
For the wider picture, see the order protection guide.
Why do packages get returned to sender?
- Wrong or incomplete address, such as a missing apartment number. See wrong address orders.
- Failed delivery that was not collected from the carrier’s pickup point in time.
- Refused delivery by the recipient.
- Unpaid duties or taxes on international orders.
- Damaged label that the carrier could not read.
What should you do when one comes back?
- Check the reason on the tracking history or the returned label.
- Inspect the parcel and the items for damage.
- Contact the customer with what happened and their options.
- Reship or refund under your policy.
- Record it with the reason, so you can see patterns.
Reship or refund?
| Reason | Common approach |
|---|---|
| Customer’s wrong address | Reship to the corrected address at the customer’s cost, or refund minus shipping |
| Not collected from pickup point | Same as above |
| Refused delivery | Handle as a return under your return policy |
| Unpaid duties | Refund minus shipping and any return fees, or reship after the customer agrees to pay |
| Carrier error or unreadable label | Reship at your cost |
Whatever you choose, apply it the same way every time and put it in writing.
Does shipping protection apply?
Usually not. Protection covers parcels that are lost, stolen or damaged in transit. A parcel that comes back intact is none of those. If it comes back damaged, you can treat the damage as a protection case. Also decide whether the protection fee is refunded when you refund the order; see should you refund the shipping protection fee?.
What should your policy say?
If your order is returned to us because of an incorrect address, a missed collection or a refused delivery, we’ll contact you. We can reship it once you confirm the address and pay the new shipping cost, or refund the order minus the original shipping.
For international orders, also state that duties and taxes are the customer’s responsibility and that refused parcels are not covered. See international shipping insurance for ecommerce.
How do you handle the stock when it comes back?
Inspect the items before you restock them. Check the packaging for water or crush damage, confirm seals are intact on items that need them, and photograph anything damaged in case you need to make a carrier claim. Restock only what you would happily send to a new customer. If the customer asks for a reship, you can often send the same items in fresh packaging, which saves stock and keeps the timeline short.
How do you reduce returns to sender?
- Validate addresses at checkout.
- Show the address clearly in the order confirmation.
- Tell international customers about duties before they buy.
- Send pickup-point reminders when the carrier offers them.
To set up a claims flow for genuine delivery problems, see Sam Shipping Protection.
Frequently asked questions
Should I refund an order that was returned to sender?
Offer the customer a choice: reship to a corrected address, usually at their cost if they caused the return, or a refund minus the original shipping and any return charges your policy allows.
Does shipping protection cover returned-to-sender parcels?
Usually not, because the parcel is not lost or damaged. It is back with you. If it comes back damaged, that part may be covered.
What if the customer refused the parcel?
Treat it like a return under your return policy once it arrives back, including any restocking or shipping deductions your policy states.
Part of our guide: Order protection →