How can customer service automate returns and refunds?

James
Customer Service
- 8 min reading
Published on
October 9, 2026

"How do I return my item?", "Where is my refund?", "Did my return arrive?" Do these messages sound familiar? 🤔

Returns are one of the most common topics in an e-commerce customer service inbox. And they're almost always the same questions.

The short answer:

Yes, most return-related requests can be automated: information on the return policy, eligibility checks, label generation, tracking of return shipments, and refund status. Disputes (damaged products, returns received after the deadline, dissatisfied customers, goodwill gestures) should remain in the hands of a human.

In this guide, we'll look at what the law says, what processes are truly automated, the available tools, and how to get started without compromising the customer experience.

Let's go! 🚀

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Automating returns: What exactly does that mean?

Behind the word “return” lie two distinct topics.

1. The Logistical and Financial Process

The customer reports the return, receives a shipping label, and drops off the package. The warehouse receives and inspects the item, and then the refund or exchange is processed. This is where return portals and logistics tools come into play.

2. Conversations About Returning Home

These are all the messages the customer sends at each stage: before returning an item, during shipping, and after receiving it. These requests come in via email, chat, forms, or social media. This is where the help desk and AI come into play.

Automating feedback means killing two birds with one stone. A good portal reduces the number of questions. Good AI responds quickly and accurately to the questions that do come in.

BrickWhat it automatesExamples of tools
Return PortalDeclaration, Eligibility, Label, ExchangeLoop, ReturnGO, Revers.io, Shipup
E-commerce Platform / OMSOrder Status, RefundsShopify, PrestaShop, Magento
Help Desk + AIAnswers to Customer QuestionsGorgias, Zendesk + Native or Third-Party AI

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E-commerce Returns in 2026: Why They Place Such a Heavy Burden on Customer Service

Returns are not a marginal issue. Here are a few recent examples:

  • 📦 In the United States, the National Retail Federation (NRF) and Happy Returns estimated the value of returns at $890 billion in 2024, representing 16.9% of sales. For 2025, the forecast is $849.9 billion and 15.8%.
  • 👗 In the fashion industry, the online return rate stands at 24.4 percent, according to a Coresight Research survey of industry decision-makers in the United States (2023).
  • 🇫🇷 In France, an average return rate of about 24% is often cited, attributed to Fevad. This figure is primarily circulated through secondary sources and should be treated with caution.
  • 🔁 According to Narvar's 2024 State of Returns survey, nearly 39% of U.S. consumers return an online purchase at least once a month.
  • ⏳ In its "Holiday Shopping 2026" report, Narvar notes that 56% of consumers have already delayed or abandoned a purchase because they didn't know how long it would take to receive their refund.

What about customer service?

There are few reliable public statistics on the exact percentage of support tickets related to returns. An academic study conducted in collaboration with Alibaba (2026) indicates that 56.5% of after-sales conversations on a marketplace concern order-related issues: returns, refunds, exchanges, repairs, or shipping costs.

The most reliable method is still your own tracking. Track tickets by reason for a month: you'll know exactly how many returns you're handling.

This latest figure from Narvar says it all: a customer who doesn't know the status of their refund writes to you. And sometimes, they stop buying.

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What the Law Says: Rules to Include in Your Auto-Replies

An incorrect automated response on a legal matter is a risk. Your AI, macros, and portal must reflect current regulations. Here are the key points regarding distance selling in France, as presented by Service-Public.fr.

RuleWhat the Law ProvidesReference
Right of WithdrawalAt least 14 calendar days, starting the day after receipt of the itemConsumer Code, Art. L221-18
Return of the PropertyThe customer must return the item within 14 days of sending notice of their decisionArt. L221-23
Return Shipping CostsTo be paid by the customer, unless the seller covers the cost or failed to inform the customerArt. L221-23
Refund PeriodNo later than 14 days after being notified of the cancellationArt. L221-24
Possible postponementUntil the item is received or proof of shipment is provided by the customerArt. L221-24
Method of ReimbursementThe same payment method, unless the customer expressly agrees otherwiseArt. L221-24

Points to keep in mind:

  • The refund includes the original shipping costs, with some exceptions (such as a more expensive shipping method chosen by the customer).
  • A credit is possible only if the customer expressly agrees to it.
  • If a payment is late, late fees are automatically applied.
  • If the customer has not been informed of their right of withdrawal, the time limit is extended by 12 months.
  • Certain items are excluded: personalized items, perishable goods, products that have been unsealed and cannot be returned for hygiene reasons, etc.

Right of withdrawal or warranty?

Do not confuse the right of withdrawal (the customer changes their mind) with the legal warranty of conformity (the product is defective), which is valid for two years from the date of delivery. The rules and responses are not the same. Your automation system must be able to distinguish between the two and escalate the issue when in doubt.

This reminder does not constitute legal advice. Have your terms and conditions and response templates reviewed by a lawyer.

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What Can Be Automated… and What Must Remain Human

Not all return requests are the same. The best approach is to categorize them based on their level of risk.

Requests to be automated as a priority

Return Policy Information:

Delivery times, fees, terms and conditions, excluded items, and whether or not in-store returns are allowed. These are consistent answers that are easy to verify.

Eligibility Check:

Delivery date, product category, time elapsed. With the order data, the answer is factual.

Label Creation and Return Instructions:

A redirect portal handles this very well. The AI can redirect users to the right link at the right time.

Tracking your return package:

"Did you receive my return?" The answer depends on the carrier's status or whether it has been received at the warehouse.

Refund Status:

"When will I be reimbursed?" If that information is available on your e-commerce platform, the answer can be automatic and accurate.

Keeping Requests Human

  • Product received damaged or not as described (statutory warranty, photos, expert assessment)
  • Return After the Deadline or Request for an Exception
  • Dispute Over the Amount Reimbursed
  • Suspected Abuse or Fraud
  • A very dissatisfied customer or one who is threatening to leave a negative review
  • A goodwill gesture or compensation
Type of requestCan it be automated?Why
Return PolicyYesA consistent response, rooted in policy
Eligibility for ReturnYes, with order detailsFactual rule (date, category)
Return LabelYes, through the portalStandardized Process
Refund StatusYes, if the data existsInformation available in the tool
Defective productPartiallyCollecting auto data, human decision-making
Exception, Dispute, Goodwill GestureNoJudgment and Human Responsibility

Golden Rule:

Automate the information, not the binding decision. AI that promises a refund or a goodwill gesture not provided for in your policy creates a commitment that you will have to honor.

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Return Portal, Help Desk, AI: Comparing Approaches in 2026

Several families of tools coexist. They are not in competition with one another; rather, they complement one another.

1. Return Portals

They automate the logistics process: the customer submits a self-service return request, chooses between a refund or an exchange, and receives a return label.

Loop Returns

A U.S.-based platform with a strong presence in the Shopify ecosystem (claiming over 5,000 Shopify brands). It excels in returns and store credit. In February 2026, Loop announced an integration with Sendcloud to expand its carrier network to the United Kingdom and the European Union.

  • Key features: instant exchanges, automated return policies, the Shopify ecosystem
  • Limitations: A solution originally designed for North America; European coverage is recent
  • Price: Free basic plan (US/Canada labels), then starting at $155/month (Essential) and $340/month (Advanced)

ReturnGO

Self-service returns portal, compatible with multiple e-commerce platforms, featuring a Shopify app.

  • Key features: approval workflows, multilingual support in the Pro plan, free trial on Shopify
  • Limitations: Many options are sold as add-ons
  • Price: starting at $147/month (Premium) and $297/month (Pro); Enterprise pricing available upon request

Revers.io

A French platform (based in Paris) dedicated to after-sales services: returns, repairs, and resale. It lists clients such as Fnac Darty, La Redoute, and Maisons du Monde.

  • Strengths: omnichannel management, repairs, numerous logistics partners
  • Limitations: Focus on key accounts; no public pricing
  • Price: Upon request

Shipup (by ZigZag)

A post-purchase platform that includes delivery tracking and a returns portal. It integrates with Gorgias, Zendesk, and Salesforce, among others.

  • Key features: tracking and feedback within the same tool, help desk integrations
  • Limitations: No public prices
  • Price: Upon request

2. The help desk's native AI agent

Gorgias, Zendesk, and others offer their own AI agents. On Gorgias, the AI Agent has native access to Shopify data, including returns. For details on the options available for this help desk, see our comparison of AI solutions compatible with Gorgias.

  • Strengths: Everything in a single tool; no integrations to manage
  • Limitations: Ties you to your help desk; billing is often based on the number of issues resolved, in addition to the subscription fee

3. Generative AI connected to your help desk

That’s Klark’s approach. The AI integrates with your existing help desk and tools (Shopify, PrestaShop, Magento, Shipup, ShippingBo, etc.). It uses this data and your ticket history to draft or send responses to return requests.

  • Key features: plug-and-play, learns from your past conversations, co-pilot and automation in a single solution, success-based billing (subscription + €0.50 per successfully resolved ticket)
  • Limitations: Adoption is currently limited primarily to Europe; as of 2026, Klark covers only written channels (email, chat, forms, social media messages), not phone calls
  • What Klark doesn't do: The AI doesn't initiate the refund on its own. It responds to the customer based on the information available in your connected tools.
ApproachWhat It CoversPricing ModelIdeal for
Return Portal (Loop, ReturnGO)Logistics workflow, labels, exchangesMonthly subscription, starting at ~$150/monthShopify Brands with Steady Sales Volume
After-sales platform (Revers.io)Returns, Repairs, ResaleOn requestMajor omnichannel retailers
Post-Purchase (Shipup)Tracking + Return PortalOn requestBrands that want to centralize everything
Helpdesk-Native AIAnswers in a single toolTroubleshooting + Help Desk GuideSMEs on a single help desk
Connected AI (Klark)Responses from connected devicesSubscription + €0.50 per successful ticketMulti-tool Retail and E-commerce

Retail prices as of 2026; please check with each publisher.

The right combination?

In most cases: a return portal for the process, and an AI on the help desk for any questions that still come in.

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Implementing Return Automation: 6 Steps

Step 1: Measure your actual volume

Tag your tickets by reason for at least one month: terms and conditions, eligibility, label, return tracking, refund status, defective product. You'll know where the volume is.

Step 2: Clarify your return policy

Time frames, fees, exclusions, in-store returns, exchanges, or store credit. If your policy is unclear, your automation will be too. Make sure it complies with legal requirements.

Step 3: Connect your data sources

E-commerce platform, tracking tool, returns portal. Without access to order and refund status, an AI can only provide generic responses.

Step 4: Start in co-pilot mode

AI prepares the responses, and your agents approve them. This is the best way to measure actual quality on your real tickets before rolling out automation.

Step 5: Automate one pattern at a time

Start with requests for general information (terms, deadlines). Next, track returns and refund status. Handle disputes manually.

Step 6: Establish clear escalation rules

Sensitive keywords, repeat customers, large amounts, defective products: List the situations that must always be handled by an agent.

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Key Performance Indicators (KPIs) to Track to Manage Your Returns

Automating without measuring is like moving forward blindly. Here are the metrics to track.

KPIWhat it measuresWhy It's Useful
Volume of "return" ticketsNumber of requests related to returnsMeasures the impact of the portal and notifications
Automation ratePercentage of tickets processed without an agentMeasures the increase in capacity
First response timeTime until the first responseConcerned customers are waiting for a quick response
CSAT for return ticketsSatisfaction After ExchangeVerify that automation does not degrade the user experience
Reopening RateTickets Reopened After a ResponseFlags incomplete or incorrect answers

Also track FCR (first-contact resolution) andAHT (average handling time) for tickets that are still being handled by humans.

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Mistakes to avoid

Stating a false repayment deadline

"You'll be refunded within 48 hours"—even though your warehouse takes a week to process returns? You're creating follow-up requests and frustration. Make sure your responses align with your actual processing times, within the legal framework.

Let AI take the lead on behalf of the company

Promising a refund outside of standard policy, accepting a return after the deadline, or offering a goodwill gesture: these are human decisions. Configure the escalation process accordingly.

Confusing the right of withdrawal with the warranty

A defective product should not be treated as a simple change of mind. A standard automated response regarding a damaged product is poorly received.

Automating Without Data

Without access to the order, the AI directs the customer to the FAQ. The customer rewrites the message. You've doubled the number of messages.

Forget the channels

Customers submit their return inquiries via email, chat, online forms, and social media. Automation limited to a single channel results in some of the volume being missed.

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Frequently Asked Questions

Can refunds be fully automated?

The refund process can be automated through your returns portal or e-commerce platform, based on defined rules. Responses to customers regarding the status of their refund can also be automated. Disputes, however, should be handled by a person.

What is the legal refund period in France?

The seller must issue a refund no later than 14 days after being notified of the cancellation. The seller may delay the refund until the item has been returned or the customer has provided proof of shipment.

Do we need a return portal or AI?

Both serve different purposes. The portal manages the logistics process. The AI answers customers' questions before, during, and after the return. High-volume brands often combine the two.

Can an AI answer the question, “What’s the status of my refund?”?

Yes, if it is connected to the data source (e-commerce platform, returns portal). Without that data, it can only provide a generic response.

What return requests should be left with the agents?

Defective products, exceptions to the policy, disputes over the amount, suspected fraud, and very dissatisfied customers.

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Why use Klark for return-related requests?

Klark was designed for customer service teams in retail and e-commerce. Here's what it offers when it comes to returns:

  1. Insights Based on Your Data

Klark uses your ticket history and connected tools (Shopify, Prestashop, Magento, Shipup, ShippingBo, etc.) to draft or automate a response.

  1. Co-pilot or automation—at your own pace

Start with drafts that have been approved by your agents. Launch the automation (Autopilot or Chatbot) once the quality has been verified.

  1. No tools to change

Klark integrates with Zendesk, Freshdesk, Gorgias, Salesforce, Intercom, Front, HubSpot, Crisp, and eDesk. Setup takes just a few minutes.

  1. Success-Based Billing

Flat-rate subscription + €0.50 per successfully processed ticket. Each ticket is billed only once.

  1. Measured results

A 50% increase in productivity and an average of 43% of tickets automated among our clients, including ba&sh, Chantelle, Sessùn, and Izipizi.

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Conclusion: Automate the information, but keep control over exceptions

Let's recap:

  • Returns are a major burden: about 16% of sales in the United States, and even more in the fashion industry
  • The legal framework is clear: 14 days to cancel, 14 days to issue a refund
  • Most questions (regarding terms, eligibility, follow-up, and reimbursement status) are handled automatically
  • Disputes, exceptions, and defective products are all part of human nature
  • The return portal and AI on the help desk complement each other
  • Start by working as a co-pilot, measure, then automate pattern by pattern

A customer who knows the status of their return doesn't need to contact you. And anyone who does contact you deserves a prompt and fair response.

The goal isn't to eliminate human contact. It's to reserve it for situations where it really matters. 🚀

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👉 Book a demo

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About Klark

Klark is a generative AI platform that helps customer service agents respond faster, more accurately, without changing their tools or habits. Deployable in minutes, Klark is already used by over 50 brands and 2,000 agents.

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