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Can customers pay for their own label?

Not directly during the return process. If you have communicated a fee for a prepaid label to your customers or set a label fee in our dashboard, this fee is to be deducted from the final refund. This delivers the best customer experience based on our data.

Another option is to add a product "Prepaid Label Fee" (or a similar name) with a fixed fee to your Shopify store and require customers to purchase this product in order to be eligible for a return / prepaid label. Staff can then simply check if a customer did indeed purchase this product before approving a return.