What You Need to Know About Etsy Order Cancellations, Returns, and Refunds

Etsy is a popular online marketplace where you can buy and sell handmade, vintage, and unique goods. Whether you are a buyer or a seller on Etsy, you may encounter situations where you need to cancel, return, or refund an order. In this blog, I will explain what you need to know about Etsy order cancellations, returns, and refunds, and how to handle them smoothly and professionally.

Etsy Order Cancellations

Sometimes, you may need to cancel an order before it is shipped. For example, you may change your mind about a purchase, or you may realize that you made a mistake in your order details. Or, as a seller, you may face some issues with your inventory, production, or shipping that prevent you from fulfilling an order.

According to Etsy’s Cancellation Policy, only a seller can cancel an Etsy order; if you’re a buyer who would like to request a cancellation, please contact the seller directly through Messages. A seller may cancel a transaction if the cancellation meets all of Etsy’s policies, including their Anti-Discrimination Policy, and one of the following circumstances applies:

• The order payment was not successful: The seller may flag a buyer for a payment not received, chargeback, or cancelled payment.
• The order payment was successful, and one of the following is true:
  • The seller agreed to a buyer request to cancel their order before dispatch, and the seller has issued the buyer a full refund.
  • The seller has decided to refuse service to the buyer and the seller has issued a full refund, including postage.
  • The buyer did not receive the item(s) ordered, and the seller has issued a refund for the item. Refunding postage is optional, unless the buyer paid with Etsy Payments, in which case you’ll need to refund in full.
  • The buyer and seller agreed that the buyer could return the item to the seller for a refund. The seller has received the returned item and issued a refund to the buyer for the item. Refunding postage is optional, unless the buyer paid with Etsy Payments, in which case you’ll need to refund in full.

For more information on how to cancel an order, please see this Help article.

Etsy Order Returns

If you are not satisfied with your purchase, or if you receive a damaged or defective item, you may want to return it for an exchange or a refund. However, not all items are eligible for returns, and each seller has their own policies regarding refunds, exchanges, and returns on every item they list for sale.

Before you make a purchase on Etsy, it is advisable to check the seller’s shop policies and listing details to see if they accept returns or exchanges. You can also contact the seller directly through Messages if you have any questions or concerns about their policies.

If you need to return or exchange an item, the seller you purchased your order from is the best person to help you. You should contact them as soon as possible and explain why you want to return or exchange the item. If the seller is willing to accept this return or exchange, be sure to settle on the details in a message before returning the item. For example, you should agree on:

• Where the buyer should send the item (generally to your address)
• The time frame in which you want to receive it
• Who will be responsible for the cost of return shipping

You should also keep a proof of postage or tracking number when you ship back the item. This will help you in case there is any dispute or delay in receiving the item.

If you are a seller who wants to help a buyer with a return or exchange, there are different approaches you can take depending on whether you purchase the return shipping label for them or they purchase it themselves. For more details on how to help a buyer with a return or exchange, please see this Help article.

Etsy Order Refunds

If you cancel an order or accept a return from a buyer, you may need to issue them a full or partial refund. A refund is when you return money to a buyer for an order that they paid for but did not receive or were not happy with.

You can issue a full or partial refund for an order in your Shop Manager. To refund an order:

• On Etsy.com , open Shop Manager.
• Select Orders & Shipping.
• Choose the … (ellipsis) icon next to the order you want to refund.
• Choose Issue a refund.
• Select a Reason for issuing a refund and add an optional Message to buyer.
• If you want to refund the entire transaction , choose the box by Issue a full refund . If you want to partially refund the transaction , enter the Amount to refund next to the item.
• Select Review refund.
• Select Submit.

Be sure to cancel the order if needed. Canceling is separate from refunding. Learn how to cancel a sale here.

You can issue a refund within 180 days of the transaction. If more time passes, you’ll have to negotiate a refund with the buyer off the platform. Refunds are issued in the original form of payment or Etsy credit. Shipping refunds are only issued in Etsy credit if the company administers them.

If you refund a buyer through your Shop Manager, your Etsy transaction and processing fees for the refunded transactions are automatically refunded to your Payment account. If you also canceled the transaction, your listing fees are automatically credited to your account.

For more information on how to issue a full or partial refund for an order, please see this Help article.