Complete Shopify return label guide: desktop + mobile steps with screenshots, native vs app comparison, customer email templates, automation setup, and cost calculator to decide when to upgrade.
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You get an email: "Hi, I need to return this sweater—it doesn't fit." Now what?

If you're manually emailing customers back and forth about return addresses, asking them to pay for their own shipping, or spending 10+ minutes per return generating labels outside of Shopify, you're wasting hours per week and frustrating customers who expect one-click returns.

Here's the solution: Shopify has a built-in return label feature that generates prepaid USPS, UPS, or FedEx labels in under 2 minutes. It's available on most Shopify plans (Basic and up), costs you only the actual shipping cost (no platform fees), and integrates directly with your order management.

This guide walks you through the exact steps to create return labels in Shopify Admin (desktop and mobile), shows you how to email labels to customers, explains when you should upgrade to a returns portal app (Loop, Returnly, AfterShip), and gives you copy-paste email templates to reduce your support ticket time by 50%.

What You'll Learn:

How to Create Return Labels in Shopify Admin (Desktop)

How do you generate prepaid return labels in Shopify? In Shopify Admin, go to Orders → select the order → click Return → select items → click Create a return label → choose your return-to address and carrier (USPS, UPS, FedEx) → then Email customer or Copy link to share the prepaid label. The label cost is deducted from the refund or charged separately based on your settings.

This is the fastest way to handle returns manually. You stay inside Shopify, the label cost is tracked automatically, and customers get a PDF they can print at home or show at the post office.

Step-by-Step: Desktop Return Label Creation

  1. Log in to Shopify Admin at admin.shopify.com
  2. Navigate to Orders in the left sidebar
  3. Click the order you want to process a return for (you can search by order number, customer name, or email)
  4. Scroll down to the order details section and click the Return button (or Create return if this is the first return for this order)
  5. Select the items being returned by checking the boxes next to each item
  6. Choose the return reason from the dropdown (e.g., "Defective," "Wrong item," "Changed mind," "Doesn't fit"). This helps with analytics later.
  7. Click Continue
  8. Click "Create a return label" in the Return shipping section
  9. Select your return-to address (usually your warehouse or fulfillment center). If you have multiple locations, choose the one closest to the customer to save on shipping costs.
  10. Choose the carrier and service level:
    • USPS First Class: $4-7 for items under 1 lb (cheapest, 3-5 days)
    • USPS Priority Mail: $8-12 for items under 5 lbs (2-3 days, includes tracking)
    • UPS Ground: $10-15 (3-5 days, reliable tracking)
    • FedEx Ground: $12-18 (similar to UPS, good for larger items)
  11. Review the estimated shipping cost displayed on screen (this is what you'll pay; you can deduct it from the refund or absorb it as a customer service cost)
  12. Click "Create label"
  13. Choose how to deliver the label to the customer:
    • Email customer: Shopify sends an automated email with the label PDF attached
    • Copy link: Manually paste the link into your own email, SMS, or support ticket (useful if you want to customize the message)

Done. The customer now has a prepaid label. They print it (or show the barcode on their phone at some USPS locations), attach it to the package, and drop it off. You get tracking automatically in Shopify.

Pro Tip: If you choose "Email customer," Shopify's default email is pretty bare-bones. Use the "Copy link" option instead and send your own branded email (see template below) for a better customer experience.

For official Shopify documentation on this process, see: Shopify Help Center - Create a Return Label.

Mobile Return Label Creation (Shopify App)

You can also create return labels from the Shopify mobile app (iOS or Android), though the interface is more limited. This is useful if you're traveling or don't have access to a computer.

Shopify Mobile App Steps

  1. Open the Shopify app on your phone
  2. Tap Orders at the bottom nav
  3. Search for and tap the order you want to process a return for
  4. Scroll down and tap Return items
  5. Select the items being returned and choose a reason
  6. Tap Continue
  7. Tap Create a return label
  8. Choose your return-to address and carrier (same options as desktop: USPS, UPS, FedEx)
  9. Review the cost and tap Create label
  10. Tap Email customer or Copy link (same as desktop)

The mobile experience is nearly identical to desktop, just with a smaller screen. If you process more than 5 returns per week, desktop is faster—but mobile works in a pinch.

Customer Email Template With Label Link

Shopify's default return label email is functional but impersonal. Here's a better template you can use when you choose "Copy link" instead of "Email customer":

Subject: Your Return Label is Ready – Order #[ORDER_NUMBER]

Hi [Customer Name],

Thanks for reaching out about your return. I've created a prepaid return label for you—no need to pay for shipping.

📦 Your Return Label: [PASTE_LABEL_LINK_HERE]

What to do next:

  1. Click the link above and print the label (or save it to your phone)
  2. Pack the item securely in its original packaging if possible
  3. Attach the label to the outside of the box (cover any old shipping labels)
  4. Drop it off at any [USPS/UPS/FedEx] location—no need to wait in line, just drop and go

Refund timeline: You'll receive your refund within 5-7 business days after we receive and inspect the return. We'll send you a confirmation email as soon as it's processed.

Tracking: Your return label includes tracking. You can monitor it here: [TRACKING_LINK] (available 24 hours after you drop off the package).

If you have any questions, just reply to this email—I'm here to help!

Best,

[Your Name]
[Your Store Name] Customer Support
[Support Email/Phone]

This template:

  • Emphasizes "no need to pay" (removes friction)
  • Gives clear step-by-step instructions (reduces "how do I use this?" support tickets)
  • Sets refund timeline expectations (prevents "where's my refund?" emails 2 days later)
  • Includes tracking info (empowers the customer to self-serve)

Email Template Generator Tool

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Return Shipping Costs by Carrier (USPS vs UPS vs FedEx)

Shopify charges you the actual shipping cost—no platform fees—so choosing the right carrier matters for your margins. Here's a comparison:

Carrier/Service Weight Limit Typical Cost Speed Tracking Best For
USPS First Class Under 1 lb $4-7 3-5 days Yes Lightweight items (apparel, accessories)
USPS Priority Mail Up to 70 lbs $8-12 (under 5 lbs) 2-3 days Yes Most returns (clothing, shoes, small electronics)
USPS Priority Mail Flat Rate Up to 70 lbs $9.95 (small box), $16.95 (medium) 2-3 days Yes Heavy items that fit in flat-rate boxes (books, dense products)
UPS Ground Up to 150 lbs $10-15 (under 5 lbs) 3-5 days Yes (excellent) Larger items, items requiring signature, business-to-business returns
FedEx Ground Up to 150 lbs $12-18 (under 5 lbs) 3-5 days Yes (excellent) Similar to UPS; use if you have a FedEx discount or customer preference

How to Minimize Return Shipping Costs

  1. Choose the slowest acceptable service. If your return policy is 60 days, customers don't need 2-day Priority shipping for returns. First Class or Ground saves you $3-5 per return.
  2. Use USPS for items under 1 lb. First Class is the cheapest option for lightweight apparel, jewelry, or accessories.
  3. Use flat-rate boxes for heavy items. If you sell books, cookware, or other dense products, USPS Flat Rate Medium ($16.95) beats UPS/FedEx for items over 3-4 lbs.
  4. Negotiate rates with carriers. If you process 100+ returns per month, contact UPS or FedEx for volume discounts (10-20% off retail rates).
  5. Charge return shipping to the customer (if policy allows). Deduct the label cost from their refund or offer free returns only on defective items.
Watch Out: Shopify's label pricing is retail rates, not discounted commercial rates. If you're processing 50+ returns per month, you may save money using a third-party shipping platform (ShipStation, Pirate Ship) integrated with Shopify—but this adds complexity.

Native Shopify vs Return Portal Apps (When to Upgrade)

Shopify's native return label feature works great if you process fewer than 20 returns per month and don't mind manually creating labels one by one. But if you're scaling, here are the signs it's time to upgrade to a returns portal app:

Signs You Need a Return Portal App

  • You process 20+ returns per month: At this volume, manual label creation takes 1-2 hours per week. Apps automate most of it.
  • Customers email asking "how do I return this?": A self-service portal eliminates 60% of return-related support tickets.
  • You want to prioritize exchanges over refunds: Apps like Loop and Returnly push customers toward exchanges (keeping revenue) instead of refunds.
  • You need branded return experiences: Native Shopify emails are generic. Apps let you customize portal design, emails, and SMS notifications.
  • You track return reasons for analytics: Apps provide dashboards showing why items are returned (doesn't fit, defective, wrong color) so you can fix upstream issues.
  • You offer instant exchanges: Apps can ship the new item before receiving the return (Shopify native requires the return to arrive first).
  • You want international returns: Shopify native labels only work for domestic returns (US to US, Canada to Canada, etc.). Apps support cross-border returns.

What You Lose With Native Shopify

  • No self-service portal (customers must contact you)
  • No branded return experience (generic Shopify emails)
  • No automation (you manually create every label)
  • No analytics dashboard (can't track return reasons or costs at scale)
  • No instant exchanges (refund must process first)

What You Gain With a Return Portal App

  • Self-service: Customers initiate returns without emailing you (saves 5-10 minutes per return)
  • Branded portal: Matches your store design, builds trust
  • Automation: Labels generate automatically when customer submits a return request
  • Exchange prioritization: Apps show "Exchange for different size?" options before refund buttons
  • Analytics: Dashboards show return rate by product, reason codes, and costs
  • International support: Handle returns from any country
  • Integration with helpdesks: Connects to Gorgias, Zendesk, or Klaviyo for unified customer service

Cost-Benefit Breakeven Analysis

Native Shopify cost: $0 platform fee + shipping costs (~$8 per return average)

Return portal app cost: $30-100/month + shipping costs (~$8 per return average)

Time saved per return: ~5 minutes (from manual creation to automated self-service)

Breakeven calculation:

  • If you process 20 returns/month: 20 × 5 min = 100 minutes (1.7 hours) saved. At $30/hour labor cost, that's $50 saved. A $30/month app breaks even.
  • If you process 50 returns/month: 50 × 5 min = 250 minutes (4.2 hours) saved. At $30/hour, that's $125 saved. A $60/month app pays for itself 2x over.

Recommendation: Stay with native Shopify if you're under 20 returns/month. Upgrade to an app at 20-30 returns/month or sooner if customer support tickets are overwhelming your team.

🚀 Get the Complete Shopify Returns Setup Checklist

Our Shopify Returns Starter Kit includes step-by-step guides for native labels AND the top 5 return apps, email templates with Shopify merge fields, a training SOP for your support team, and a cost comparison spreadsheet to decide when to upgrade to an app.

What's Included:

  • ✓ Native label creation checklist (desktop + mobile, with screenshots)
  • ✓ App evaluation matrix: Loop vs Returnly vs AfterShip vs Rich Returns vs ReturnGO
  • ✓ 15+ email templates with Shopify liquid tags (order number, customer name, tracking, etc.)
  • ✓ L1 support training guide (reduce ticket resolution time by 50%)
  • ✓ Cost calculator: When does an app pay for itself?
  • ✓ Return policy template optimized for Shopify (copy-paste into your store footer)
Get the Shopify Kit — $29

Instant download. Works with all Shopify plans (Basic, Shopify, Advanced, Plus).

Top 5 Shopify Return Apps Compared

If you've decided to upgrade from native Shopify labels, here are the best return portal apps in 2025:

App Best For Pricing Key Features Pros Cons
Loop Returns Mid to large stores prioritizing exchanges $155/month (up to 300 returns/month) Instant exchanges, Shop Pay integration, Klaviyo SMS, analytics Best exchange experience; integrates with Shopify POS; white-label portal Expensive for small stores; learning curve
Returnly Stores wanting instant exchanges to keep revenue $59/month (up to 100 returns/month) Instant exchange (new item ships before return arrives), store credit, analytics Excellent for reducing refunds; clean UI; integrates with major carriers Limited customization; higher pricing tiers expensive
AfterShip Returns International stores or high-volume operations $59/month (up to 100 returns/month) Multi-carrier support, international returns, branded tracking page Best for global operations; connects to AfterShip tracking (if you already use it) Portal design is basic; customer support can be slow
Rich Returns Budget-conscious stores needing automation $30/month (unlimited returns) Self-service portal, automated labels, refund/exchange options Affordable; unlimited returns; simple setup Fewer integrations; no instant exchanges; basic analytics
ReturnGO Stores needing advanced analytics and fraud detection $99/month (up to 200 returns/month) AI-powered fraud detection, warranty management, multi-warehouse support Great analytics; flags serial returners; flexible rules engine Overkill for small stores; complex setup

App Selection Decision Tree

Choose Loop Returns if:

  • You want the absolute best exchange experience (customers love the instant exchange feature)
  • You're on Shopify Plus or process 300+ returns/month
  • You want deep analytics and integrations (Klaviyo, Gorgias, ShipBob)

Choose Returnly if:

  • Your primary goal is reducing refunds (turn them into exchanges or store credit)
  • You process 100-300 returns/month
  • You want a balance of features and cost

Choose AfterShip Returns if:

  • You ship internationally and need cross-border return support
  • You already use AfterShip for shipment tracking (they integrate seamlessly)
  • You need multi-warehouse support

Choose Rich Returns if:

  • You're on a tight budget ($30/month is the cheapest full-featured app)
  • You process 20-100 returns/month and just need self-service automation
  • You don't need fancy analytics or instant exchanges—just want to stop manually creating labels

Choose ReturnGO if:

  • You have a fraud problem (serial returners, wardrobing)
  • You sell high-ticket items and need warranty management
  • You operate multiple warehouses or fulfillment centers

For our full breakdown of return window strategies and policy best practices, see: Holiday Return Policy Template (2025) with downloadable templates and calculator.

Automation Tips to Reduce Manual Work

Whether you stick with native Shopify or upgrade to an app, here are ways to automate parts of your return process:

1. Create Saved Replies for Common Return Requests

In your helpdesk (Gorgias, Zendesk) or email client, create canned responses for:

  • "Customer wants to return—send label" → Copy-paste the email template from above, replace placeholders with order details
  • "Customer asks about return policy" → Link to your policy page + summarize key points (window, fees, conditions)
  • "Customer asks where their refund is" → "Refunds process 5-7 business days after we receive the return. Your tracking shows [status]. Expect your refund by [date]."

This cuts reply time from 5 minutes to 30 seconds.

2. Set Up Email Notifications for Return Milestones

Use Shopify's notification settings (Settings → Notifications → Customer notifications) or Klaviyo to trigger emails at key moments:

  • Return label created: "Your return label is ready! Here's the link..."
  • Return in transit: "We see your return is on its way. Expect your refund by [date]."
  • Return received: "We received your return today. Your refund is processing and will appear in 5-7 business days."
  • Refund issued: "Your refund of $[amount] has been processed to your original payment method."

These emails prevent 70% of "status update" support tickets.

3. Use Shopify Flow (Plus Only) for Auto-Approvals

If you're on Shopify Plus, use Shopify Flow to automatically approve and generate labels for low-risk returns:

  • Trigger: Customer submits a return request via app
  • Condition: Order value
  • Action: Auto-approve return, generate label, send email

This removes you from the process entirely for 80% of returns.

4. Integrate With Your Inventory Management System

If you use an inventory tool (ShipBob, ShipStation, Inventory Planner), connect it to your returns process so returned items automatically:

  • Restock in your system
  • Get marked as "needs inspection" if the return reason was "defective"
  • Trigger restocking alerts if a specific SKU has high return rates (e.g., "Blue sweater size M is returned 40% of the time—possible sizing issue")

5. Train Your Team With SOPs

Create a simple standard operating procedure (SOP) for your support team:

SOP: Processing a Return Request

  1. Customer emails asking to return [product]. Check if it's within the return window (60 days for Nov-Dec purchases, 30 days otherwise).
  2. Go to Shopify Admin → Orders → Search for the order number or customer email.
  3. Click Return → Select items → Choose reason → Create label.
  4. Copy the label link and paste it into the "Return Label Email Template" (saved in shared drive).
  5. Send the email to the customer.
  6. Mark the support ticket as "resolved" and add a tag "return-processed" for tracking.
  7. Time goal: 2 minutes per return.

When every team member follows the same process, mistakes drop and speed increases.

Frequently Asked Questions

Can customers self-serve return labels in Shopify without an app?

No, not with native Shopify. Customers must contact you (email, phone, chat) to request a return. You then manually create the label and send it to them. If you want a self-service portal where customers initiate returns themselves, you need to install a returns app like Loop, Returnly, or Rich Returns. The app adds a "Start a Return" button to your order confirmation emails and customer account pages.

How much does a Shopify return label cost?

You pay only the actual shipping cost—no platform fees from Shopify. Typical costs: USPS First Class $4-7 (under 1 lb), USPS Priority $8-12 (under 5 lbs), UPS Ground $10-15 (under 5 lbs). You can deduct this cost from the customer's refund or absorb it as a customer service expense. Shopify uses retail rates, not discounted commercial rates, so if you process 50+ returns per month, consider negotiating with carriers directly.

Does Shopify charge a fee for return labels?

No, Shopify doesn't charge a platform fee for creating return labels. You pay only the carrier's shipping cost (USPS, UPS, FedEx). This is unlike some competitors (like Wix or Squarespace) that add transaction fees or label fees on top of shipping. Apps like Loop or Returnly charge monthly subscription fees ($30-155/month) but also don't add per-label fees—just their subscription price.

Can I use Shopify return labels for international returns?

Native Shopify return labels only work for domestic returns (US to US, Canada to Canada, Australia to Australia, etc.). If you ship internationally and need return labels from customers abroad back to your warehouse, you must use a third-party app (AfterShip Returns, Loop, Returnly) or a dedicated shipping platform (ShipStation, Easyship) that supports international returns with customs forms.

How do I deduct return shipping from the refund?

When you create the return label in Shopify, the shipping cost is automatically tracked. When you issue the refund, Shopify shows the label cost and gives you the option to deduct it from the refund amount. For example: customer's order was $50, return shipping is $8, so you refund $42. Make sure your return policy states whether you charge return shipping or absorb it (free returns).

What's the best Shopify return app for small stores?

Rich Returns ($30/month, unlimited returns) is the best budget option. It provides a self-service portal, automated label generation, and refund/exchange options without breaking the bank. If you need more advanced features like instant exchanges or deep analytics, Returnly ($59/month) is the next step up. Loop Returns ($155/month) is overkill unless you're processing 300+ returns/month or on Shopify Plus.

Can I create return labels from the Shopify mobile app?

Yes, the Shopify mobile app (iOS and Android) supports return label creation. The steps are nearly identical to desktop: Orders → Select order → Return items → Create label → Email customer or copy link. The mobile interface is more compact, so it's slightly slower than desktop, but it works well if you're traveling or away from your computer.

Do Shopify return labels include tracking?

Yes, all Shopify-generated return labels include tracking. The tracking number appears in the order details in Shopify Admin, and you can share it with the customer. When the customer drops off the package, tracking activates within 24 hours. You'll see updates like "In Transit," "Out for Delivery," and "Delivered" directly in Shopify. This helps you know when to issue the refund.

How do I handle return label requests outside business hours?

Use an auto-responder email that sets expectations and provides your return policy link. Example: "Thanks for contacting us! We received your return request and will send your prepaid label within 1 business day (Monday-Friday, 9am-5pm EST). In the meantime, please review our return policy at [link]. Expect an email from [your email] with your label by [next business day]." This prevents customers from feeling ignored and reduces "are you there?" follow-ups.

Can I customize the return label email in Shopify?

Shopify's native return label email is not customizable—it's a basic template. If you want branded emails with your logo, custom copy, and personalized instructions, use the "Copy link" option instead of "Email customer" and send your own email (see template above). Alternatively, upgrade to a returns app (Loop, Returnly, Rich Returns) that lets you fully customize return emails and SMS notifications.

What if a customer loses the return label?

Go back to Shopify Admin → Orders → Click the order → View the return details → Click "Email customer" to resend the label link. The label doesn't expire and can be resent as many times as needed. If the customer already dropped off the package without the label, they'll need to retrieve it (the carrier hasn't accepted it yet) or you'll need to generate a new label. Always advise customers to keep the label link saved until the return is complete.

Can I offer instant exchanges in Shopify without an app?

No, native Shopify requires you to receive and process the return before shipping a replacement. If you want instant exchanges (customer gets the new item before returning the old one), you need an app like Loop Returns or Returnly. Instant exchanges are powerful for reducing refund rates—customers are 3x more likely to exchange than refund if the process is instant.

Conclusion

Return labels don't have to be a time sink. Shopify's native label feature gets you 80% of the way there with zero monthly cost—just 2 minutes per return and the actual shipping expense. For stores processing under 20 returns per month, that's all you need.

But if returns are becoming a bottleneck, eating up hours of your week, or frustrating customers who expect one-click self-service, it's time to upgrade to an app. Loop, Returnly, and Rich Returns all eliminate the manual work, reduce support tickets by 60%, and—most importantly—turn refunds into exchanges that keep revenue in your business.

Here's your action plan:

  1. If you're under 20 returns/month: Stick with native Shopify. Use the email template above to improve customer experience.
  2. If you're at 20-50 returns/month: Try Rich Returns ($30/month) for automated self-service without breaking the bank.
  3. If you're at 50+ returns/month or want to reduce refund rates: Go with Returnly or Loop to prioritize exchanges and get deep analytics.
  4. If you ship internationally: Use AfterShip Returns for cross-border support.
  5. If you have a fraud problem: Use ReturnGO for AI-powered fraud detection.

Returns are part of ecommerce—but they don't have to kill your margins or your team's sanity.

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