# Shipping Returns and Reverse Logistics > Reverse logistics moves a returned product back and decides what happens next. Track the item, shipping cost, condition, and refund as separate events. - Type: Merchant guide - Level: Intermediate - Reading time: About 6 minutes - Audience: Written for store owners, builders, and designers refining high-performance ecommerce stores. - Last updated: 2026-11-04 - Canonical page: https://academy.getzenbasket.com/merchant-questions/shipping-returns-and-reverse-logistics/ - Part of: [Merchant Questions](https://academy.getzenbasket.com/merchant-questions/) on ZenBasket Academy --- ## What you need to know ### How do ecommerce returns work? A return brings goods back and resolves the associated order under the store’s actual policy and applicable law. Provide clear steps, identify who pays return shipping and track the item, and refund separately. ### What is reverse logistics? Reverse logistics is the movement and processing of goods coming back from customers. It includes labels, receipts, inspection, restocking, or disposal, and coordination with the refund. A returned parcel does not automatically mean the product can be resold. ### Who should pay return shipping? It depends on why the product is returned, the promised policy, and legal rights in the destination. A faulty or wrongly shipped item can require different treatment from a change of mind. State the cost before the buyer sends it back. ### Should stores provide prepaid return labels? A prepaid label can make the return easier when the store or provider can issue one for that route. Explain whether its cost is covered or deducted where lawful and promised. Test that the label works for the item and destination. ### How should returned products be tracked? Link the return authorization or case to the original order, shipment, and refund. Track label creation, carrier handoff, warehouse receipt, and inspection. Do not mark the item received merely because a label exists. ### When should returned inventory become available again? Restock only after the item is physically received, inspected and suitable for resale under product and safety requirements. A returned item that arrives damaged should not increase available stock. --- ## Frequently asked questions ### What happens to damaged returned products? Record damage, cause if known and disposition: repair, discount, recycle or dispose as appropriate. Separate the customer remedy from the carrier claim and stock adjustment. Do not relist an unsafe or unsellable product as new. ### How does international return shipping work? Check the return carrier route, documentation, customs treatment and who pays transportation and import charges. A cross-border return can cost more than the item; discuss available lawful remedies before mailing it back. --- ## Related learning path - **Delayed, Lost and Damaged Packages** - **Shipping Margin and Order Profitability** - [ZenBasket Build Guide](https://help.getzenbasket.com/zenbasket-builder/)