How Returns Work in ShipSideKick
The Return Journey
Every return follows a predictable path through your warehouse. Understanding this flow helps your team know what to expect at each stage:
Request — A customer or merchant initiates a return request.
Approval or Decline — Your team reviews the return and either approves it (creating warehouse work) or declines it with a reason.
In Transit — The customer ships the items back to your warehouse.
Receiving — Warehouse staff scan items in as they arrive at the dock.
Inspection — Each unit is graded and assessed for condition.
Disposition — A decision is made about what happens to each item (restock, refurbish, liquidate, donate, or dispose).
Execution — The disposition is carried out (inventory is moved, items are flagged, etc.).
Completion — All items are processed and the return closes.
The system automatically moves returns through status changes as your team completes work, so manual status updates are rarely necessary. This keeps your data accurate and your team focused on the physical work.
Setting Up Returns
Enable Returns for Your Organization
Returns functionality is built into ShipSideKick and accessible from the main navigation. If you don't see the Returns section in your dashboard, contact support to ensure the feature is enabled for your organization.
Configure Return Settings
Before your team starts processing returns, establish these key settings:
Return Request Window — Set the timeframe within which customers can request returns (typically 30 days from shipment).
Return Shipping Carriers — Configure which carriers you'll use for return labels. ShipSideKick integrates with EasyPost to generate prepaid return labels using your negotiated carrier rates.
Defect Codes — Define the standardized defect tags your inspectors will use (for example: "scratch," "dent," "stain," "missing button," "broken zipper"). These help you track common damage patterns and make disposition decisions consistent.
Disposition Rules — Decide which grades automatically trigger which dispositions. For example, Grade A items might auto-disposition to Restock, while Grade D items auto-disposition to Dispose.
Integrate with Shopify (If Applicable)
If you use Shopify, you can enable automatic return syncing so that returns created in Shopify flow into ShipSideKick automatically. See the Shopify Integration section below for details.
Creating Returns
There are three main ways a return order can enter ShipSideKick:
1. Manual Creation
A warehouse operator or merchant creates a return directly in ShipSideKick. This is ideal for returns initiated by phone, email, or in-person requests.
Steps:
Navigate to the Returns section in your dashboard.
Click Create Return or New Return Order.
Enter the customer information and select the original order (if applicable).
Specify which items and quantities are being returned.
Add any notes or special instructions.
Click Create. The system generates an RMA (Return Merchandise Authorization) number for tracking.
The return is now in the approval queue.
2. Automatic Import from Shopify or E-commerce Platform
If you have Shopify integration enabled, returns created in Shopify automatically appear in your ShipSideKick queue. The return is ready for your team to review and approve.
What happens:
A return request is created in Shopify by the customer.
ShipSideKick syncs the return automatically.
The return appears in your Returns dashboard with all order and item details pre-filled.
Your team approves or declines it.
Note on Shopify Syncing: There can be occasional issues with the system automatically syncing Shopify exchanges and return orders. If an exchange or return isn't being picked up automatically, you may need to trigger a manual resync or contact support for assistance with the integration.
3. Prepaid Return Label Included With Outbound Order
For merchants who want to offer frictionless returns (popular with apparel, high-return-rate categories, or as a customer service differentiator), you can create a return at the same time you create the outbound order. This approach streamlines the customer experience and accelerates returns processing.
How it works:
When you create an outbound order, you also create an associated return order.
The return is auto-approved immediately — no approval step needed.
A prepaid return label is generated and printed alongside the outbound shipping label during pack-out.
The customer opens their package and finds the return label already inside, ready to use.
The return label can use a different shipping service than the outbound — for example, ship outbound via express and return via ground to save on return costs.
Returns can be full or partial — you specify exactly which items and quantities are eligible for return.
Returns can even include items not in the original order (useful for things like returning damaged packaging or providing a label for a replacement box).
Benefits:
Customers don't have to request a return or wait for approval.
Return labels are already in hand when the package arrives.
You control return costs by choosing the carrier and service level.
Faster returns processing because items arrive with clear RMA information.
Approving or Declining Returns
When a return is created through any channel other than the auto-approved prepaid flow, it enters your approval queue. Your team reviews each return and makes a decision.
Approve a Return
Steps:
Navigate to the Returns dashboard.
Find the return in the approval queue.
Review the customer information, original order details, and requested items.
Click Approve.
The system:
Accepts the return.
Creates warehouse tasks for receiving and inspection.
Generates a return label (if one wasn't already created) and sends it to the customer.
Notifies the customer that their return has been approved.
Decline a Return
Steps:
Navigate to the Returns dashboard.
Find the return in the approval queue.
Click Decline.
Enter a reason for the decline (for example: "Outside return window," "Item not eligible for return," "Condition issue").
Click Confirm.
The system:
Rejects the return.
Notifies the customer with the reason.
Creates no warehouse work.
Receiving Returns at the Warehouse
Once a customer's return package arrives at the dock, your warehouse staff process it through a barcode-driven flow. This is where the return becomes real work in your warehouse.
The Receiving Process
Steps:
Scan the Return Order or RMA — At the receiving dock, scan the barcode on the return label or enter the RMA number. This pulls up the expected items and the work waiting to be done.
Scan Each Unit — As items are unboxed, scan the barcode on each unit. The system matches each scan to a specific item awaiting receipt.
Confirm Receipt — Once all expected items are scanned, confirm receipt. Each item is marked as received and moves into the inspection stage.
Why Barcode Scanning Matters
Because receiving is task-based and barcode-driven, your staff always see what's left to scan. Nothing gets forgotten, and the system catches mismatches immediately (for example, if a wrong item is in the box). This accuracy is critical because it feeds directly into inventory decisions later.
Inspecting and Grading Returned Items
Inspection is where a pile of received merchandise becomes actionable intelligence. Every returned unit is inspected individually, and the condition grade you assign drives what happens to that item next.
The Inspection Checklist
For each item, the inspector answers five quick questions:
Are the original tags still attached?
Is the item in its original packaging?
Does the item show minor wear?
Is the item physically damaged?
Are any components or accessories missing?
These questions are designed to be answered quickly while the inspector has the item in hand. The answers feed into an automatic grading system.
Automatic Grading System
Based on the inspector's answers to the checklist, ShipSideKick automatically assigns a condition grade:
GradeMeaningDescriptionANew / Like NewTags on, no wear, no damage, original packaging intactBGoodTags removed or minor wear present, but no damageCAcceptableDamaged OR missing components (but not both)DDefectiveDamaged AND missing components
How grades work:
Grade A items are strong candidates for restocking at full value.
Grade B items may be restocked at a slight discount or sent for refurbishment.
Grade C items require a decision: repair them, liquidate them, or donate them.
Grade D items typically go to disposal, liquidation, or supplier returns.
Additional Inspection Data
Beyond the five-question checklist, inspectors can capture richer detail:
Verify the SKU — Scan the barcode on the item to confirm it matches the expected SKU. This catches wrong-item returns early and prevents inventory errors.
Apply Defect Codes — Use standardized defect tags (like "scratch," "dent," "stain," etc.) that you've configured for your operation. This helps you track common damage patterns and identify trends.
Add Condition Notes — Free-text observations for anything the checklist doesn't capture. For example: "Small stain on left sleeve, barely visible," or "Zipper works but feels stiff."
Attach Photos or Videos — Especially important for damaged or defective items. Visual evidence helps with refund disputes, insurance claims, and training your team on what different damage levels look like.
Override the Grade — If the inspector believes the automatically calculated grade is wrong, they can override it. When they do, they must provide a reason, and that override is tracked for audit purposes.
Grade Drives Disposition
The grade you assign during inspection feeds directly into the next step: disposition. The condition of the item determines what happens to it next. Many organizations set up automatic disposition rules so that Grade A items automatically go to Restock, Grade D items automatically go to Dispose, and Grade B and C items go to a review queue for manual decision-making.
Dispositions: Deciding What Happens to Each Item
A disposition is the action taken on a returned unit after inspection. Once you've graded an item, you decide its fate. ShipSideKick supports seven disposition options:
DispositionWhat It MeansTypical UseRestockReturn to sellable inventoryGrade A items ready to sell againRefurbishSend for repair or reconditioning before restockingGrade B or C items that can be made sellableLiquidateSell to a liquidation partner or discount channelGrade C or D items; overstock; seasonal itemsDonateSend to a charitable organizationGrade C or D items; tax write-off strategyDisposeDiscard or send to waste managementGrade D items; hazardous items; items with no salvage valueReturn to SupplierSend back to your vendorDefective items under warranty; supplier recallsHoldKeep in quarantine pending further reviewItems with unclear disposition; pending insurance claim
How Dispositions Are Assigned
Automatic Disposition: If you've set up disposition rules, the system automatically assigns a disposition based on the grade. For example:
Grade A → Restock
Grade B → Refurbish or Restock
Grade C → Liquidate or Donate
Grade D → Dispose or Return to Supplier
Manual Disposition: For items that don't match an automatic rule, or when you want to override the default, a team member can manually select the disposition. This is useful for edge cases, items with special circumstances, or when you want to review Grade B and C items before making a final decision.
Execution and Inventory Impact
Once a disposition is assigned, the system executes it:
Restock — The item is moved to your sellable inventory at the designated warehouse location. It's now available for future orders.
Refurbish — The item is flagged and moved to a refurbishment area or partner location. It's removed from sellable inventory until repairs are complete.
Liquidate — The item is flagged for liquidation and moved to a holding area. It's removed from sellable inventory and prepared for sale through a liquidation channel.
Donate — The item is flagged for donation and moved to a staging area. It's removed from sellable inventory and prepared for shipment to a charitable organization.
Dispose — The item is flagged for disposal and removed from inventory entirely. It's prepared for waste management or destruction.
Return to Supplier — The item is flagged and held pending supplier pickup or return shipment. It's removed from sellable inventory.
Hold — The item is quarantined in a designated hold location. It remains in inventory but is not available for sale until the hold is lifted.
Return Labels and Shipping
Generating Return Labels
Return labels are generated at different points depending on how the return was created:
Prepaid Returns — Labels are generated automatically when the outbound order is created and printed alongside the outbound shipping label.
Approved Returns — Labels are generated when the return is approved and sent to the customer.
Manual Returns — Labels are generated when the return is created or approved.
Important Limitation: Reprinting Return Labels
Currently, you can only print return labels if they were generated when the order originally shipped. The system does not allow you to create new return labels after shipping has occurred. However, new returns functionality is coming soon that will allow creating labels at the time of return, which will provide more flexibility for managing returns that weren't anticipated at the time of outbound shipment.
Workaround: If a customer needs a return label for an order that didn't include a prepaid return label, you can:
Manually create a return order in ShipSideKick.
Approve the return, and the system will generate a new return label.
Send the label to the customer.
Carrier Integration
ShipSideKick integrates with EasyPost to generate prepaid return labels using your negotiated carrier rates. You can configure which carriers to use and which service levels to offer for returns. This allows you to optimize return costs by choosing ground shipping for returns while offering express shipping for outbound orders, for example.
Shopify Integration
Automatic Return Syncing
If you use Shopify, you can enable automatic return syncing so that returns created in Shopify flow into ShipSideKick automatically. This eliminates manual data entry and ensures your returns are processed consistently across both systems.
How Shopify Integration Works
A customer creates a return request in Shopify.
ShipSideKick automatically syncs the return.
The return appears in your Returns dashboard with all order and item details pre-filled.
Your team approves or declines the return.
Once approved, a return label is generated and sent to the customer.
Troubleshooting Shopify Syncing Issues
There can be occasional issues with the system automatically syncing Shopify exchanges and return orders. If an exchange or return isn't being picked up automatically:
Check that Shopify integration is enabled in your ShipSideKick settings.
Try triggering a manual resync from the integration settings.
If the issue persists, contact support for assistance with the integration.
Best Practices for Returns Management
Set Clear Return Policies
Define your return request window (typically 30 days from shipment) and communicate it clearly to customers. This helps manage expectations and reduces disputes.
Use Prepaid Return Labels for High-Return Categories
If you sell apparel, shoes, or other categories with high return rates, consider including prepaid return labels with every outbound order. This dramatically improves the customer experience and accelerates returns processing.
Configure Comprehensive Defect Codes
Spend time upfront defining defect codes that match your products and common damage patterns. Examples include:
"Scratch"
"Dent"
"Stain"
"Missing button"
"Broken zipper"
"Faded color"
"Odor"
"Pilling"
These codes help you track trends and make data-driven decisions about which items to restock, refurbish, or liquidate.
Train Your Inspection Team
The quality of your inspection directly impacts your inventory accuracy and profitability. Invest in training your team to:
Answer the five-question checklist consistently.
Identify and document defects accurately.
Take photos or videos of damaged items.
Use defect codes correctly.
Know when to override the automatic grade and why.
Set Up Automatic Disposition Rules
Automate the disposition decision for clear-cut cases:
Grade A → Restock (no manual review needed)
Grade D → Dispose (no manual review needed)
Grade B and C → Manual review queue (your team decides case by case)
This keeps your team focused on the items that actually need human judgment.
Monitor Returns Trends
Use your returns data to identify patterns:
Which products have the highest return rates?
What are the most common defects?
Are certain customers returning items more frequently?
Which disposition decisions are most profitable?
Use these insights to improve product quality, supplier relationships, and customer communication.
Maintain Audit Trails
All return activities are tracked in the Activity Log system for compliance and operational review. Regularly review these logs to:
Verify that your team is following procedures.
Identify training opportunities.
Prepare for refund disputes or insurance claims.
Demonstrate due diligence to auditors or regulators.
Frequently Asked Questions
What happens if a customer returns the wrong item?
When warehouse staff scan items during receiving, the system matches each scan to the expected item. If a wrong item is scanned, the system will flag the mismatch immediately. Your team can then investigate and decide how to handle the discrepancy. This is why barcode scanning is so important — it catches errors early before they impact your inventory.
Can I override the automatic grade assigned by the system?
Yes. If an inspector believes the automatically calculated grade is incorrect, they can override it. When they do, they must provide a reason for the override, and that override is tracked in the Activity Log for audit purposes. This allows your team to handle edge cases while maintaining accountability.
What should I do if I'm not sure about the disposition for an item?
Use the Hold disposition. This quarantines the item in a designated location while you gather more information, wait for an insurance claim decision, or consult with a manager. Once you've made a final decision, you can update the disposition and execute it.
How do I know if Shopify integration is working correctly?
Check your Returns dashboard regularly to see if returns created in Shopify are appearing automatically. If you notice returns aren't syncing, try triggering a manual resync from your integration settings. If the issue persists, contact support.
Can I return items that weren't in the original order?
Yes. When creating a prepaid return label with an outbound order, you can include items not in the original order. This is useful for things like returning damaged packaging or providing a label for a replacement box. However, for standard returns, items should generally be from the original order to maintain accurate tracking.
What's the difference between Refurbish and Restock?
Restock means the item is in sellable condition and can be returned to inventory immediately at full value. Refurbish means the item needs repair or reconditioning before it can be sold. Refurbished items are typically removed from inventory, sent to a repair partner or internal refurbishment area, and then restocked once repairs are complete. Refurbished items may also be sold at a discount to reflect the repair work.
Support and Additional Resources
If you have questions about returns functionality or encounter issues, contact support. Our team can help you:
Enable or configure the returns feature for your organization.
Set up carrier integrations and return label generation.
Define defect codes and disposition rules for your operation.
Troubleshoot Shopify integration issues.
Train your team on returns procedures.
For the most up-to-date information and feature announcements, check your ShipSideKick dashboard regularly.