Shipping Glossary

Return Label / Return Shipping

What return labels are, how they work, and the best ways to handle return shipping.

Definition

A return label is a prepaid shipping label that allows the recipient of a package to send it back to the original sender without paying for postage. Return labels can be included in the original shipment, emailed to the customer, or generated on-demand through a self-service portal.

What Is Return Label?

Return labels are essential for e-commerce businesses that offer hassle-free returns. There are several approaches: including a prepaid return label in every outgoing shipment, emailing a digital return label when a return is requested, or providing a QR code that the customer can scan at a carrier drop-off location to print the label for free. With pay-on-use return labels (offered by USPS), you're only charged if the label is actually used, avoiding waste. The cost of a return label is the same as a standard outgoing shipment for the same weight, dimensions, and distance. Many businesses absorb the return shipping cost as part of their return policy, while others deduct it from the customer's refund.

Why It Matters

Easy returns drive customer loyalty and increase purchase confidence. Studies show that 67% of shoppers check the return policy before buying. Offering prepaid return labels can increase conversion rates and customer satisfaction, even if it adds to your shipping costs.

How Each Carrier Handles Return Label

USPS

USPS offers pay-on-use return labels through USPS Returns, where you're only charged when the label is scanned. Labels can be printed by the shipper and included in the box, or generated as a QR code the customer brings to any post office. Merchandise Return Service is available for high-volume commercial mailers.

FedEx

FedEx offers prepaid return labels through FedEx Return Solutions. Options include emailing labels, including printed labels in packages, or using FedEx Electronic Return Label where customers print at home. FedEx also offers package pickup for returns.

UPS

UPS offers prepaid return labels through UPS Returns. Options include UPS Print Return Label (print at home), UPS Electronic Return Label (emailed), and UPS Returns on the Web (customer-initiated). QR codes for label-free drop-off at UPS Stores are also available.

Tips

Use pay-on-use return labels so you're only charged when a return is actually shipped

Email return labels on-demand rather than including them in every box to reduce unnecessary returns

QR code returns let customers drop off at carrier locations without printing a label at home

Use I'd Ship That to create affordable return labels at discounted rates

Related Terms

Shipping Label • Tracking Number • Ground Advantage

Frequently Asked Questions

Do I have to pay for a return label if it's not used?

With USPS pay-on-use return labels, no -- you're only charged when the label is scanned into the system. FedEx and UPS prepaid labels are charged when created. If you're including labels in packages, USPS pay-on-use is the most cost-effective approach.

How much does a return label cost?

A return label costs the same as an outgoing shipment of the same weight, dimensions, and distance. If you use commercial pricing through a platform like I'd Ship That, your return labels receive the same discounted rates as your outgoing labels.

Can I email a return label to my customer?

Yes. All major carriers support emailing return labels as PDF attachments that the customer can print at home. Many platforms also support QR code returns where the customer brings a code to a carrier location and the label is printed for them at no extra charge.

Who pays for return shipping?

This depends on the business's return policy. Some businesses offer free returns and absorb the cost. Others deduct the return shipping cost from the customer's refund. Some provide a flat-rate return fee. The approach depends on your margins and competitive positioning.

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