Standard operating procedure for customer returns

A returns SOP means every return gets handled the same way regardless of who processes it. Consistency reduces errors, speeds up resolution, and protects your margins.

SOP: Customer Returns

Scope: All customer return and exchange requests for online orders.

Step 1: Receive request.

Customer emails or submits return form. Acknowledge within 4 hours (automated).

Step 2: Verify eligibility.

• Order within return window? (30 days from delivery)
• Item in original condition? (unworn, tags attached)
• Is item on final sale? (if yes → decline with explanation)
• Reason for return? (log for reporting)

Step 3: Issue return authorisation.

If eligible: send return label and instructions. If exchange: confirm replacement item availability and size.

Step 4: Receive and inspect.

Check item condition on receipt. If acceptable: process refund/exchange within 3 business days. If not acceptable: email customer with photos and explanation.

Step 5: Process outcome.

• Refund: deduct return shipping fee if applicable, process to original payment method
• Exchange: ship replacement, send tracking
• Store credit: issue with 12-month expiry

Step 6: Update inventory.

Returned item inspected, retagged if sellable, added back to inventory. Damaged items logged for write-off.

Step 7: Log and report.

Monthly: return rate, top return reasons, cost per return, refund vs exchange ratio.

AI can handle steps 1-3 entirely and assist with step 5. Human review for step 4 (inspection) and step 7 (analysis and action).

See how AI affects ecommerce operations →

Further reading

• InboxAgents: AI for ecommerce workflows