How to Issue a Full or Partial Refund For an Order

You can issue a full or partial refund for an order in your Shop Manager. To refund an order:

  1. On Etsy.com, click the Your Account icon.
  2. Click Shop Manager.
  3. Click Orders & Delivery.
  4. Click the (ellipsis) icon next to the order you want to refund.
  5. Click Issue a refund.
  6. Select a Reason for issuing a refund and add an optional Message to buyer.
  7. If you want to refund the entire transaction, click the box by Issue a full refund. If you want to partially refund the transaction, enter the Amount to refund next to the item.
  8. Click Review refund.
  9. Click Submit.

If the buyer paid through Etsy Payments, then you’re done! However, if the buyer paid through another method, like PayPal without Etsy Payments, you’ll need to refund them through that payment method.

Can I refund an order through the Sell in Etsy app?

Yes, you can issue a full refund through the Sell on Etsy app. However, if you want to issue a partial refund, you need to use Etsy.com.

What can I issue a refund for?

You can issue refunds for any reason, including:

  • Any refund in accordance with your Shop Policies
  • If you agree to issue a refund to the buyer
  • If the buyer is overcharged for delivery
  • If the buyer forgot to apply a shop coupon

How do I pay for a refund?

If you use Etsy Payments, the funds for the refund are deducted from your Payment account. If your Payment account doesn’t have enough funds to cover the refund, your credit card on file will be charged for the remaining amount. This charge will appear in your Payment account under Recent activities.

If you use another payment method, like PayPal without Etsy Payments, you’ll need to refund the order through that payment method.

Will Etsy refund my seller fees?

If you refund a buyer through your Shop Manager, your Etsy transaction and processing fees for the refunded transactions are automatically refunded to your Payment account. If you also cancelled the transaction, your listing fees are automatically credited to your account.

When can I issue a refund?

If you use Etsy Payments, you can issue a refund after the payment is processed, and before 180 days after the payment is processed. After 180 days have passed, you can’t refund an order through Etsy Payments.

If your shop has a refund policy that allows for refunds after 180 days, you can refund the buyer through a payment method outside of Etsy, such as PayPal. If you refund a buyer through another method after 180 days have passed since the date of the transaction, Etsy won’t refund your seller fees.

If a buyer requests a return or refund for an item, you can help them through Shop Manager.

If you don't normally accept returns or offer refunds, you can consider making an exception as it can help increase customer satisfaction and loyalty. However, refunding or processing a return for an order is up to you. You can specify if you accept returns in your shop policies.

If you use Etsy Payments, you can refund your order through your Shop Manager:

  1. On Etsy.com, click the Your Account icon.
  2. Click Shop Manager.
  3. Click Orders & Delivery.
  4. Click the (ellipsis) icon next to the order you want to refund.
  5. Click Issue a refundIf you want to partially refund the transaction, enter the Amount to refund next to the item.

After you issue a refund, you can also cancel the order.

If you use another payment method, like PayPal without Etsy Payments, you’ll need to refund the order through that payment method.

If you refund a buyer through your Shop Manager, your Etsy transaction and processing fees for the refunded transactions are automatically refunded to your Payment account.

If the order you want to refund is still processing, you can’t refund or cancel yet. Most orders paid for with Etsy Payments to process within 24 - 72 hours.

  1. From Orders & Delivery, click the (ellipsis) icon next to the order you want to cancel.
  2. Click Issue a refund.
  3. Select a Reason for issuing a refund and add an optional Message to buyer.
  4. Next to the order number, click the box by Issue a full refund, then by Cancel Order.
  5. Choose which transactions to cancel. You can cancel some or all transactions in an order.
  6. Click Review refund.

If the buyer paid through Etsy Payments, then you’re done! However, if the buyer paid through another method, like PayPal, you’ll need to refund them through that payment method.

There is a 48-hour holding period until the cancellation is processed. If you used Etsy Payments, Etsy then credits you for the related listing and transaction fees.

Cancelled orders appear in Orders & Delivery under the Complete tab.

Cancelling a sold-out item doesn't put the item back in your shop, but you can quickly renew it.

You should coordinate the return with the buyer, wait to receive the returned item, then refund the buyer for their order. Determine:

  1. where the buyer should send the package
  2. the time frame in which you would like to receive it
  3. who will be responsible for the original and return postage costs

Then, decide how to handle purchasing the postage label. Either you can purchase the label from the delivery service you prefer, or the buyer can purchase the postage label.

If you’re purchasing the label, follow these steps:

  1. Purchase return postage on the website of your preferred carrier using your address as the destination and the buyer's address as the origin. If you’re a seller in the US, you may be able to purchase a return postage label  through Etsy.
  2. Download the label as a PDF.
  3. Email it to the buyer, or send it as an attachment in a message on Etsy. Your buyer can then print the label and use it on their package.
  4. Wait for the package to be returned.
  5. Follow the instructions above to issue a refund for the order.

The buyer and I can’t agree on the terms of a return

The buyer can open a case if you’re unable to come to a resolution together. Etsy will stand behind your stated policies as long as they align with our policies

While delivery issues can happen, by working with the buyer on a solution, you can often ease a frustrating situation and use it to build customer loyalty. You can offer a refund, replacement, and/or work with the delivery service to file a claim if you purchased insurance. As the sender, you’ll need to file a claim for insurance coverage. If you purchased an Etsy postage label, learn how to file an insurance claim.

Work with the buyer and advise them to check in with their local post office as well as their neighbours. 

In the event that the buyer files a non delivery case, we need to see proof the item was sent to the address on the Etsy receipt or the address agreed upon in Etsy Messages. Comment in the case log with proof of delivery: 

  • A delivery service receipt
  • A tracking number and/or tracking information that shows the package was delivered to the buyer
  • A customs form (for international packages)
  • A scanned copy of the dispatch confirmation or departure information
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