Dropshipping Returns in Germany: Withdrawal, Address & Costs

Returns are the topic missing from almost every dropshipping tutorial, and the one asked about most often in the comments. Here you will learn how dropshipping returns work legally in Germany, why returns to China are a problem and how to handle withdrawals, complaints and refunds in practice in Shopify. You will find the bigger picture in our overview of Shopify dropshipping in Germany.

Who is responsible: you or the supplier?

You. With dropshipping, the customer concludes the purchase contract with you. The Händlerbund (a German merchants' association) puts it clearly: towards the end customer, the merchant is always liable, even if the fault lies with the dropshipping partner (Händlerbund (German)). Your customer doesn't have to deal with AliExpress, CJ or a wholesaler.

What you agree with the supplier only determines whether you get your money back. That is why the supplier's return conditions are among the most important things to check when choosing one, see finding reliable dropshipping suppliers.

Withdrawal, statutory warranty, guarantee: the difference

Since 27.09.2026 you must also display the harmonized EU legal guarantee notice (Gewährleistungslabel) clearly before the contract is concluded and include it with the order confirmation (IHK Dresden (German)). This also applies to dropshippers. You can implement it through a theme customization or an app, for example with our app EU Warranty Label GARAN.

Important for transport damage: when selling to consumers, you generally bear the shipping risk. If the goods arrive damaged or not at all, that is your problem, not the customer's. Whether you can get the money back from the supplier or the parcel carrier is a separate question.

The rules for withdrawal

• Period: 14 days from receipt of the goods (§ 355 of the German Civil Code, BGB). If you did not provide correct information about the right of withdrawal, the period is extended considerably.
• Refund: you must refund the purchase price and the cost of standard shipping to the customer within 14 days of receiving the withdrawal (§ 357 BGB).
• Withholding: you may withhold the refund until the goods are back or the customer proves they have sent them.
• Return shipping costs: the customer only bears them if you informed them before the purchase. Otherwise you pay.
• Compensation for loss in value (Wertersatz): if the customer used the goods beyond what is needed to examine them, you may be able to claim compensation.
• Exceptions: among others, there is no right of withdrawal for goods made to the customer's specifications, such as a shirt with the customer's name (§ 312g (2) no. 1 BGB (German)). This does not apply to normal dropshipping goods.
• Withdrawal button (Widerrufsbutton): since 19.06.2026 your store must have an electronic withdrawal function: a clearly visible button, a confirmation page and an acknowledgment of receipt with date and time (§ 356a BGB).

What the withdrawal notice (Widerrufsbelehrung), the model form and your other legal texts must look like is covered in the article protecting your Shopify store against cease-and-desist letters.

Does the right of withdrawal also apply to print on demand?

Yes, in most cases. The fact that a shirt is only printed after the order is not enough for the exception. What matters is whether the customer specified the product individually. If they only choose a design, color and size from your range, they can withdraw. If they provide their own text, photo or design, the exception usually applies.

The problem: POD providers such as Printful, Printify or Shirtigo usually only reimburse misprints, defects and transport damage under their terms, not a withdrawal because the customer doesn't like the item. The returned goods then end up with you. Check your provider's terms and factor these cases into your pricing, especially for clothing with many size-related returns.

The problem with the return address

Can you simply give your supplier's address in the withdrawal notice? Within the EU, under certain conditions, yes; in China, generally not.

The IT-Recht Kanzlei (German) considers a return address outside the EU to be generally not permitted, mainly because of the customs formalities consumers would then have to deal with. An alternative address in Germany or the EU can be permitted if

• it is clearly stated in the withdrawal notice and the withdrawal form (the same address in both),
• it accepts parcels and letters from all parcel carriers (no Packstation parcel locker),
• return shipping is not more expensive or more complicated for the customer than domestic shipping,
• it does not act as a deterrent to withdrawal.

If these conditions can't be met, the law firm recommends giving your own business address. The European Consumer Centre Germany (German) also explicitly advises customers against sending goods back to Asia, even if the return address is there, and recommends demanding a reasonable address. Customers who read such tips then don't send the goods back, but complain, open PayPal cases or write reviews.

Regardless of the address: your customer should not notice anything about China when returning goods. Especially in the early stages, your own address in Germany is the legally safest solution.

I don't want to give my private address: what are the options?

A PO box or a Packstation is ruled out, because the address must accept parcels from all carriers. Options include:

• Business address with parcel acceptance: an office service or coworking space that accepts shipments for you. You need this address for your imprint (Impressum) anyway.
• Returns or fulfillment service provider in Germany: accepts returns, inspects them and stores them. Usually only worth it above a certain number of returns.
• EU supplier that accepts returns: only if they confirm this in writing and their address is in your legal texts (see above).

Three models for dropshipping returns

For defects, many suppliers accept a photo instead of a return and send a replacement or refund the purchase price. Get this confirmed in advance. You should always ask the customer for a photo of the defect.

Factor returns into your pricing, and differently depending on the category: with fashion and shoes, expect significantly more returns than with accessories or consumables. How to build this into your selling price is shown in pricing for your online store. If you offer genuine personalization where the customer specifies text or design themselves, you will have fewer returns because of the withdrawal exception; more on POD providers in print on demand with Shopify.

Handling returns in Shopify

1. The withdrawal comes in via your withdrawal button, by email or form. Confirm receipt.
2. Create a return: open the order in Shopify and create a return. If you have your own DHL account, you can generate a return label, e.g. via the DHL app for Shopify or a shipping tool.
3. Inform the customer: send the return address or label and a note on who pays the postage.
4. Inspect the goods as soon as they arrive or the customer sends proof of shipment.
5. Refund: in the order via "Refund". Shopify refunds via the original payment method. If the customer has to bear the return postage, only deduct it if you provided a label yourself and announced the deduction beforehand.
6. Supplier: for defects, file a complaint with the supplier (photos, order number).
7. Bookkeeping: create a credit note or cancellation document if you issue invoices. How this relates to invoicing apps and VAT is covered in invoices and accounting in your Shopify store.

Return rules and self-service returns in Shopify

Under "Settings" > "Policies" you set return and cancellation rules in Shopify (Shopify Help Center):

• Return window: 14, 30 or 90 days, unlimited or a custom period. For consumers in the EU, at least 14 days from delivery of the last item.
• Return shipping costs: free, a flat fee per return, or the customer buys their own label.
• Self-service: customers request a return or cancellation themselves via their customer account. The request lands in the order for you, and you approve or decline it.
• Return reasons: the customer selects a reason. For a withdrawal, however, you may not make the return dependent on a reason.

Shopify also offers a percentage restocking fee. You may not simply deduct it when a consumer withdraws: apart from announced return shipping costs and possible compensation for excessive use, the withdrawal must not cost them anything. So don't activate the fee for private customers in the EU. According to Shopify, these tools don't automatically make your store legally compliant.

Who pays for the refund, and what about the fees?

You refund out of your own money, within the 14-day period, even if your supplier hasn't credited you yet or doesn't refund anything at all. So keep a buffer. For orders via Shopify Payments, you don't get the credit card fees back on a refund (Shopify Help Center). So every return costs you at least this fee, the outbound postage and your time. How cancellations, partial refunds and customer service work in the admin is explained in editing orders in Shopify.

If a product is no longer available from the supplier and the customer wants to exchange it, offer an alternative or refund. Legally, an exchange is nothing more than a withdrawal plus a new order, unless there is a defect.

Fast, fair returns are a trust signal. How to make this visible in your store is covered in building trust in your store.

FAQ

Can the customer send the return directly to the manufacturer?

Only if you clearly state this address beforehand in the withdrawal notice and the withdrawal form, and returning there is not more complicated or more expensive for the customer than returning to you. With manufacturers or suppliers in Germany or the EU, this can work. With suppliers in China, legal experts generally consider such an address not permitted.

How do I deduct return shipping costs from the refund?

Only if you informed the customer before the purchase that they bear the return shipping costs. If they send it back at their own expense, there is nothing to deduct. If you provide a return label, you can keep its cost when refunding in Shopify by refunding a lower amount. Announce this clearly in the withdrawal notice and when sending the label.

Do I have to include a return slip in the package?

No, there is no obligation. A prepared return label is a service and can save costs, because you can buy postage more cheaply than the customer. With dropshipping, the supplier usually doesn't include anything of their own. Give the customer a label by email on request or tell them the address and the process.

Who pays if the parcel arrives damaged?

Towards the customer, you do. When selling to consumers, you bear the shipping risk. Ask for photos of the goods and the packaging, send a replacement or refund. Afterwards, file a complaint with the supplier. Whether they pay depends on their terms, which is why this question belongs in your supplier check.

Can I exclude returns for dropshipping goods?

No. The right of withdrawal applies to consumers in online retail by law and cannot be excluded in your terms and conditions (AGB). There are exceptions only for certain types of goods, such as items made to customer specifications or sealed hygiene products once opened. A sentence like "No returns" is invalid and can lead to a cease-and-desist letter.

How do I know a customer wants to return something?

Through the channels you offer: the withdrawal button, email, contact form or a returns portal. Since 19.06.2026 the electronic withdrawal button is mandatory, and the customer receives an acknowledgment of receipt. Make sure these messages land in an inbox you check daily, because the 14-day refund period runs from receipt.

Can the customer cancel if the goods are already on their way?

Yes. Consumers can withdraw from the contract even before delivery; the period only ends 14 days after receipt. If the parcel has already been shipped, you usually can't stop it anymore. The customer then accepts it and sends it back, or refuses delivery. You may withhold the refund until the goods are back or the return shipment has been proven.

Last updated: October 2026. This article is not legal or tax advice.