Returns without holding stock: where the item goes back to, and who pays
In short
With returns without holding stock, the item goes back to whatever return address you set on eBay, and you stay responsible for the refund. Most sellers use their own address, use a supplier's returns address only when the supplier has agreed, or refund without a return for low-value items. Refund within 2 business days of the return arriving.
Key takeaways
- A returned item goes to the return address you set on eBay, and the seller stays responsible for the refund.
- eBay lets you set different return addresses for different items through Returns preferences rules.
- If tracking shows the return delivered to your return address, eBay refunds automatically after 2 business days if you have not.
- You pay return postage when an item is damaged, faulty or not as described, whatever your returns policy says.
- For low-value items, a refund without a return can cost less than getting the item back.
Where does an eBay return go when you hold no stock?
Returns without holding stock work the same way as any other eBay return: the buyer sends the item to the return address you set on eBay, and you, as the seller, are responsible for the refund. It does not matter that a wholesale supplier or a warehouse sent the original parcel. eBay sees one seller, and the buyer deals only with you.
So the real question is which address you give eBay, and what happens to the item when it gets there. You have four practical choices: your own address, your supplier's returns address (only if the supplier has agreed), a returns processing service, or no return at all, where you refund and let the buyer keep the item. Each suits different products and values, and the sections below cover when to use which.
A word on eBay's drop shipping rule
eBay allows dropshipping when you fulfil orders directly from a wholesale supplier. Listing an item on eBay and then buying it from another retailer or marketplace that ships straight to your buyer is not allowed, and eBay may remove listings, restrict or suspend the account. Even when dropshipping is allowed, eBay says the seller is responsible for safe delivery and the buyer's overall satisfaction, and returns are part of that. Read eBay's drop shipping policy before you set up any model where you do not hold the stock.
How does eBay decide the return address?
eBay uses the return address in your account unless you tell it otherwise. eBay's help page on setting up a return policy says you can provide different return addresses for different items, and that when returns should go to a different location from the one the item was sent from, you can specify it when you set rules in your Returns preferences.
That is the tool to use when you sell from more than one place. For example, items a supplier holds can have one return address and items you store yourself another. Check your settings now: many sellers find their return address is still an old home address from when they opened the account.
Your four options for returns without holding stock
| Option | How it works | Good for | Watch out for |
|---|---|---|---|
| Your own address | The buyer returns to you; you inspect, then resell, send to the supplier or write off | Most sellers starting out; mid-value items | Space, time, and a second postage cost if the item goes back to the supplier |
| Supplier's returns address | The buyer returns straight to the supplier, who confirms receipt and condition | Sellers with a written returns agreement with a wholesale supplier | eBay's refund clock starts on delivery; you cannot inspect the item yourself |
| Returns processing service | A third-party address receives, checks and stores or forwards returns | Higher volumes, or sellers who move often or travel | Service fees per item |
| Refund, buyer keeps item | You refund without asking for the item back | Low-value items where return postage is close to the item's cost | You lose the item; only sensible below a value you set |
Option 1: returns to your own address
This is the simplest and the one that gives you the most control. You see the item, you decide whether the buyer's reason was fair, and you have evidence if there is a dispute. Afterwards, you can relist it as used or open box if it is in good condition, return it to your supplier under their terms, or dispose of it. Treat it as a stock item from then on: photograph it, store it labelled with the order number, and add it to your records.
Option 2: returns straight to your supplier
Only use a supplier's address if the supplier has agreed in writing, has told you exactly which address to use and how they want parcels labelled, and has agreed to tell you quickly when a return arrives and in what condition. Without that, a parcel can sit unopened in a warehouse while your buyer waits for a refund.
The timing matters. eBay says that if tracking shows the returned item has been delivered to you or your address but you have not refunded it, eBay will automatically issue the refund on your behalf after 2 business days. If the return address is a supplier's, that delivery counts. You need the supplier's condition report within that window, or you will be refunding blind.
Option 3: a returns processing service
Some businesses offer a returns address, inspection and storage for online sellers. This can make sense once returns are a steady flow. Compare the fee per return with the value of the items you get back, and make sure the service can report condition within eBay's refund window.
Option 4: refund and let the buyer keep the item
For cheap items, the return postage and your time can cost more than the item is worth. eBay's Returns preferences let you set rules to let buyers keep the item and refund them automatically when the refund amount is below a level you choose. You can also set rules to approve returns automatically under a certain refund cost, while handling others yourself.
Who pays the return postage?
eBay's help page on return postage for sellers sets the basic rule. If the item arrived damaged, faulty or does not match the listing, you are responsible for return postage, even if your returns policy says you do not offer free returns. For other reasons, such as a change of mind, the buyer pays for return postage unless your returns policy offers free returns.
UK business sellers also have legal duties that sit alongside eBay's rules. GOV.UK's guidance on accepting returns and giving refunds says that when a customer cancels an online order, you must refund them within 14 days of receiving the item back, and you must refund the cost of standard delivery if they paid for it. If they paid for a faster option, you only need to refund the standard delivery cost. Our guide to the right to cancel online orders in the UK covers those rules in full.
On eBay.com, the returns policy you set and eBay's Money Back Guarantee usually decide the outcome. Check any state consumer rules that apply to your business.
Worked example: return it or refund and let them keep it?
Example: suppose you sell a phone stand for £12.00, sourced from a wholesale supplier. The buyer says it is the wrong colour, which does not match your listing, so you pay return postage. Assume, hypothetically, that a tracked return label costs £3.20 and that the supplier would accept the item back for a credit of £5.00 only if it is unused and in its packaging, after you post it to them at a cost of £2.80.
| Route | Refund to buyer | Postage you pay | Value recovered | Net cost |
|---|---|---|---|---|
| Return to you, then to supplier | £12.00 | £3.20 + £2.80 | £5.00 credit | £13.00 |
| Return to you, resell as open box | £12.00 | £3.20 | A future sale, minus fees | Depends on the resale |
| Refund, buyer keeps it | £12.00 | £0.00 | £0.00 | £12.00 |
In this hypothetical case, letting the buyer keep the item costs less than sending it back to the supplier, unless you can resell it yourself. Run the same sum with your real figures for each product type, then set your Returns preferences rule at the value where getting the item back starts to pay.
How to handle each return, step by step
- Respond within 3 business days. eBay's Money Back Guarantee gives sellers 3 business days to respond to a return request before the buyer can ask eBay to step in.
- Read the reason. A not as described or faulty reason means you pay return postage; a change of mind usually means the buyer does, unless you offer free returns.
- Choose the route. Accept the return to your chosen address, offer a partial refund if the buyer agrees to keep the item, or refund in full without a return.
- Track the return. Use a tracked label so you can see when it arrives.
- Inspect and refund quickly. eBay gives you 2 business days after the return arrives to review it and issue a refund.
- Deal with the item. Resell, send back to the supplier, or write off, and record which.
If you are not sure whether to accept, our guide on how to accept a return on eBay walks through every option on the return screen, and when to offer an eBay partial refund covers the keep-it-with-a-discount route.
A returns checklist for sellers without stock
- Check the return address in your account and in Returns preferences today.
- Get a written returns agreement from every wholesale supplier: address, labelling, condition reports and credits.
- Set a refund-without-return value for low-cost items, based on your own sums.
- Use tracked return labels so you know when eBay's 2 business day refund window starts.
- Keep a small, labelled space for returned items and record each one.
- For UK business sales, refund standard delivery on cancellations and refund within 14 days of getting the item back.
- Review your returns each month by product: a product that keeps coming back for the same reason needs a better listing or a different supplier.
Frequently asked questions
Can I make the buyer return the item to my supplier?
You can set a supplier's address as the return address for certain items, but only do so if the supplier has agreed and will report each return to you quickly. The buyer still deals with you, and you remain responsible for the refund. eBay's refund clock starts when the return is delivered to that address.
Do I have to accept returns if my listing says no returns?
eBay requires you to accept returns for items that are damaged, faulty or not as described under its Money Back Guarantee. UK business sellers must also honour the buyer's legal right to cancel most online orders within 14 days of delivery. Check eBay's returns rules and GOV.UK for your situation.
What should I do with returned items the supplier will not take back?
Inspect them, and if they are in good condition, relist them as open box or used with honest photos and a clear description. Damaged items can sometimes be sold as spares or repairs, described as such. Record each item so your stock and accounts stay accurate.
Can I charge a restocking fee on eBay returns?
For UK business sellers, GOV.UK says you cannot deduct fees from a refund for a cancelled online order unless the item has been used or damaged. Check eBay's current returns policy rules for your site before adding any deduction to a refund.
