Return Label Pricing Adjustments

Return Label Pricing: Merchant Reference

Update: Return Label Pricing

Understanding your label
markup change

We've updated how label pricing is calculated to give merchants more visibility and flexibility to what they and their shoppers pay. Here's everything you need to know, and why the net impact to your business is zero or net-positive in most cases.

What changed

Before

Customer label prices included a flat, estimated markup to cover carrier adjustments, creating a single all-in cost. This meant every merchant paid the same average, regardless of their actual carrier data.

Now

Customer label prices still include a markup to cover carrier adjustments. You collect these markups to offset carrier adjustments. By default, we're setting the markup based on your last 6 months of actual carrier adjustments data. You can increase or decrease this at any time.

How it works

Shoppers see a similar upfront label price with no noticeable change at checkout

The price includes base label cost + a merchant-specific markup to cover carrier adjustments

You collect that upfront amount, which helps offset the carrier adjustments billed after shipment

Carrier adjustments are still charged based on actual invoices, nothing changes there

For orders with Redo coverage, we continue to absorb all adjustments as before

What this means for you

No change in total cost, this remains completely net neutral

More control: you can set your own flat rate adjustment in return settings to fully offset costs or create additional margin

Increase your adjustment price: if your carrier adjustment costs run higher, you can raise the adjustment amount passed to shoppers to better cover your actual costs and protect your margins

More accurate pricing tailored to your business, not an industry average

No action required. If you'd prefer to absorb adjustments instead, just reach out

Under and over collection

If you under-collect

If the markup collected from the shopper is less than the actual carrier adjustment, the merchant covers the difference. Carrier adjustments vary shipment to shipment, so some variance is normal. If under-collecting is a concern, we recommend adding a small buffer to your markup to account for it. You can update your markup amount in your return settings at any time.

If you over-collect

If the markup collected is more than the actual carrier adjustment, the merchant keeps the surplus. Shoppers are not refunded the difference. This means a well-set markup can create a small amount of additional margin on return labels, particularly for merchants with lower-than-average carrier adjustment costs.

At a glance: Before & Now	Before	Now
Base label cost	$7 + $1.25 markup	$7 + $1.25 markup
Markup estimate	Redo average markup	Merchant-specific markup
Customer label price	$9.00	$8.25
You collect upfront	$0	$1.25or custom amount
Carrier adjustment	$1.25 Covered by Redo	$1.25 Charged to you
Net impact to you	$0	$0

Why we made this change

To provide more transparency, flexibility, and accuracy by tailoring label pricing to each merchant instead of using a one-size-fits-all approach. Merchants told us they wanted more visibility into how label costs and carrier adjustments are handled, and this update delivers that without impacting your bottom line.