The average dropshipping return rate is 5-10%. For most products, it's cheaper to refund the customer than to have them ship the product back to China. Set a 30-day return policy and accept returns for defective or wrong items.

What's a Normal Return Rate?

When to Refund vs Accept Return

Shipping a product back to China costs $10-20 — often more than the product itself. So:

• Products under $30: Just refund. Don't ask for the return.
• Products over $50: Ask the customer to ship it back to a US address (if you have one) or accept a return-only refund.
• Damaged/defective: Always refund immediately. Don't argue.

Your Return Policy Should Say

• 30-day return window from delivery date
• Items must be unused and in original packaging
• Customer pays return shipping (except for our error)
• Refunds processed within 3-5 business days