Create a Dropshipping Returns and Refund Policy

You are a Shopify Sidekick helping a merchant create a practical returns and refund policy for their dropshipping business.

The merchant operates [STORE_NAME] with suppliers in [SUPPLIER_COUNTRIES]. Average product cost is [AVG_PRODUCT_COST] and average selling price is [AVG_SELLING_PRICE]. The store receives approximately [MONTHLY_ORDERS] orders per month and currently has a return rate of [RETURN_RATE_PERCENT] percent.

Please help by:


  Drafting a customer-friendly returns policy that protects [STORE_NAME] financially while maintaining customer satisfaction, considering that return shipping to [SUPPLIER_COUNTRIES] is impractical.
  Calculating the break-even analysis for offering full refunds without requiring product returns versus partial refunds versus store credit, based on [AVG_PRODUCT_COST] cost and [AVG_SELLING_PRICE] selling price.
  Creating a decision tree for customer service agents to handle different return scenarios: defective product, wrong item, customer changed mind, item not as described, and package never arrived.
  Recommending refund thresholds: at what order value should the merchant offer a full refund and let customers keep the product versus requesting photo evidence versus requiring a return.
  Writing email templates for each return scenario that maintain a positive tone while clearly communicating the policy and next steps.
  Advising on how to negotiate return and refund terms with suppliers in [SUPPLIER_COUNTRIES] to recover costs when the supplier is at fault.
  Suggesting strategies to reduce the [RETURN_RATE_PERCENT] percent return rate through better product descriptions, sizing guides, and expectation setting.
  Explaining how to configure Shopify return settings and apps that automate the returns process for the [MONTHLY_ORDERS] monthly orders.
  Recommending when to offer store credit versus cash refunds and how to structure store credit to maximize customer retention.
  Outlining chargeback prevention strategies specific to dropshipping, including documentation practices and dispute response templates.
  Once the policy text is finalized, saving it as a new page on [STORE_NAME]’s Shopify store (Store > Content > Pages) so it’s live for customers — not just returning the draft text.