How to Issue Refunds for Your Etsy Merchandise

When it comes to refunds, different Etsy sellers have different policies. Some sellers are happy to issue full refunds for any reason, other sellers allow buyers to exchange for other goods in their shop, and still others hold a firm “all sales final” stance.

Whatever position you adopt on this matter, be certain that your shop policies explain it clearly.

If you do decide to allow refunds, how you process them depends on which payment option your buyer chose. For example, if he sent a check, you’ll likely refund his money by sending him a check.

If she paid using PayPal, you’ll use the site to reimburse her. (For help with using PayPal to reimburse a buyer, visit PayPal’s Help Center page.) If the buyer used Direct Checkout or an Etsy gift card, you’ll need to follow these steps to refund his money:

  1. Hover your mouse pointer over the Your Shop link that appears along the top of every Etsy page.

  2. Click Sold Orders in the list of options that appears.

    The Open Orders pages opens. If you’re refunding the money after the item has been shipped, you’ll need to click the Completed Orders tab.

  3. Click the Receipt number link on the right side of the listing entry.

    A page containing information about the order opens.

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  4. Click the Manage Order menu and choose Issue a Refund.

    The Issue a Refund page opens.

  5. Click the Reason for Issuing a Refund drop-down list and choose the appropriate option from the list.

  6. Optionally, type a message to your buyer.

  7. To issue a full refund, click the Issue a Full Refund check box; otherwise, enter the desired amounts in the appropriate fields in the Amount to Refund column.

  8. Click the Review Refund button.

    Etsy asks you to confirm the refund.

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  9. Click the Submit button.

    Etsy refunds the buyer’s money. Note that if you’ve refunded the buyer’s money before shipping your item, the refund will be deducted from your pending transaction. For refunds on completed transactions, the amount will be deducted from your available balance or charged to your credit card.

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