Dropshipping: supplier returns and reconciliation

Coordinate supplier return status with the customer order and refund.

Before you start

Dropshipping must be enabled. Agree the supplier return process before accepting customer returns.

On a phone? Open the admin menu to find the same section. Screenshots below show the desktop view; tap “Open full size” for a closer look.
STEP 1

Find the customer order

Open the affected order and confirm the purchased variant, supplier reference, delivery state, and customer issue.

  • Determine whether the issue is cancellation before dispatch or a return after delivery.
Lulu Guide Demo
Dropshipping: supplier returns and reconciliation — Lulu demonstration admin
Actual Lulu admin · Demonstration store and sample dataOpen full size ↗
STEP 2

Agree return handling

Check the supplier’s requirements and contact the supplier through the agreed process. Give the customer only confirmed return instructions.

  • Verify the return destination and any authorization reference.
  • Do not promise a supplier reimbursement before it is approved.
STEP 3

Track the supplier return

Open Dropshipping returns when available and inspect the relevant record. Use only the next-state actions offered for its current status.

  • The module must be enabled before records and transitions are available.
  • Keep supplier correspondence with your operational records.
STEP 4

Handle the customer refund

Use the customer order’s refund workflow separately when appropriate. Verify the refund outcome and restocking decision.

  • A supplier return status is not automatically a customer payment refund.
  • Do not restock a supplier-held item as local warehouse stock.
STEP 5

Reconcile the costs

Compare customer refund, supplier credit, shipping costs, and the original order totals.

  • Record unresolved supplier reimbursement and investigate differences before closing the case.

CHECK YOUR WORK

You’re ready when…

  • Supplier return status and customer communication agree.
  • Customer refunds and supplier credits are reconciled separately.

IF SOMETHING DOESN’T LOOK RIGHT

Troubleshooting

Why did changing a return status not refund the customer?

Supplier-return tracking and the customer payment are separate workflows. Check the order refund controls and payment-provider outcome.

Why is a control missing or unavailable?

Confirm that you are in the correct store and that your role allows this action. Optional apps and channels may require installation, a plan, or activation. Share the screen name and error with support if access is still unclear.

Keep going

Get help with this step ↗