How are return costs charged (Return label and Handling)?

As a return label plus handling, charged once for each refund where items come back. It counts on the day of the refund. You set both amounts on the Returns page of Logistics, and they land in Logistic Costs, line 21 of your P&L.

Open Logistics and click Returns. Under What one return costs you, type the Return label: what your carrier charges for the label back to you. Then type Handling: what your warehouse charges to receive, check and put the item away. A return costs you shows the two added up. Choose the day the prices start under From when these prices count, then click Save at the top.

What counts as coming back is what Shopify records: a refund whose items are marked as returned, for a product that ships. One such refund is one parcel back, so the label and handling are charged once, however many items it holds. A refund that sends nothing back costs nothing here. That covers a goodwill refund, where the customer keeps the item, and items cancelled before they shipped. It also covers a dispute, where no parcel moves. Digital products never carry it either. The page lists these cases under What counts as a return.

An example: a return label costs €4,95 and handling €1,50. Every refund with items sent back then adds €6,45 on its refund day. The prices have a start date like every cost, so the version in force on the refund day prices the return.

The order's own costs are never paid back: its shipping label, pick and pack and packaging stay, because that parcel did go out. The refund itself, the money and the product cost credited back, lands on the same day as the return cost. On the P&L, open Logistic Costs to see it as its own Returns row. Insights, Returns sets it beside the margin each return gives back. The full cost of a return is worked out in the return cost calculator.