Refund requests come in often. Most are easy to handle and most should be handled in the client's favor. Here is the framework.
The principle
A refund costs you the cost-of-goods plus the processing fee. A frustrated client who tells five other people that you would not refund them costs much more than that. When in doubt, refund.
The cases
Order not yet shipped
Easy. Hit the Cancel & refund button on the order page. Stripe processes the refund within 5-10 business days. The client gets an email confirmation.
If the order was for a subscription, you will be asked whether to also cancel future deliveries. Usually yes.
Order shipped but not delivered
Slightly trickier. The client has a tracking number. If the package was lost in transit (carrier confirms loss), the carrier reimburses the clinic and you refund the client at no cost to you. If the package is delayed but will arrive, ask the client if they would like a partial refund for the inconvenience or to wait.
Order delivered, client unhappy with product
Use judgment. For a one-time order under $100, refund without requiring a return. The cost of asking the client to ship something back exceeds the COGS.
For larger orders or higher-value products, ask for a return. Generate a return label from the order page; the client ships it back. When you receive it (and verify condition), refund.
Order delivered, client claims they never received it
Trust but verify. If the carrier shows delivered and the client says no, file a carrier dispute (button on the order page). While the dispute is in progress, you can either:
- Refund and absorb the cost if the dispute is denied
- Wait for the dispute resolution before refunding
For a first-time customer with a low-dollar order, just refund. For a repeat customer with a high-dollar order, the dispute usually resolves in your favor.
Subscription client asking for refund of multiple shipments
Tougher case. They probably forgot to cancel and now want their money back. The easy answer is: refund the most recent unshipped charge, leave the older ones, and cancel the subscription. The client feels heard, you do not give back six months of revenue.
If they are insistent or it was clearly your fault (e.g., they tried to cancel and the cancel did not register), refund more.
The numbers
Track your refund rate by product and by month. A refund rate above 5% is a signal that something is off about the product or the expectations being set. Below 1% is unusual and may mean you are denying refunds you should grant.