Returns are part of e-commerce. In Sweden, consumers have a 14-day right of withdrawal on distance purchases. That's law, not optional. How you handle returns determines whether the customer comes back or not.
Return policy
Write a clear return policy and display it prominently: in the footer, on the product page, at checkout. Include right of withdrawal (14 days), who pays return shipping, how long refunds take, and any exceptions (hygiene products, custom-made items).
WooCommerce refunds
Under Orders → click an order → Refund. You can choose full or partial refund, via the same payment method (automatic refund with Stripe/Klarna) or manually. Stripe refunds take three to five business days. Klarna usually handles it the same day.
RMA system
Return Merchandise Authorization (RMA) gives structure to the process. YITH Advanced Refund System or WooCommerce RMA for Return Refund & Exchange. Customer requests return via their account, you approve, customer ships back, you refund. Trackable and professional.
Return shipping
You don't have to pay return shipping by law (unless the product is defective). But offering free returns reduces purchase resistance and increases conversion. Zalando built their business model on it. Calculate what it costs versus what it gives in conversion.
Reduce returns
Better product images, detailed descriptions, size guides, customer reviews. Every information point that helps the customer make the right decision reduces the probability of the product being sent back. The cheapest way to handle returns is to avoid them.