Dropshipping Delivery and Returns: A Seller’s Workflow

In dropshipping, the seller must track each order from confirming availability through actual receipt of the goods or refund. To do this, agree with your supplier on stock reservation, the deadline for handing the parcel to the carrier, proof of dispatch, and acceptance of returns. Track goods and funds separately: creating a shipping label does not confirm dispatch, and accepting returned goods does not confirm that the buyer’s refund has been completed.

If your store is the one selling goods to the consumer, handle their requests and arrange a resolution. The involvement of a supplier’s warehouse or a carrier should not force the buyer to figure out who is responsible. Below is a recommended workflow for a Ukrainian seller selling goods remotely to consumers in Ukraine; statutory requirements are identified separately.

Agree on the order terms before sending it to the warehouse

Under Parts 2–3 of Article 13 of the Law of Ukraine “On Consumer Rights Protection” No. 1023-XII, before a distance contract is concluded, the buyer must receive information about the seller, product characteristics, price including delivery, payment, delivery terms, warranty, and contract cancellation. You must confirm the provision of this information in writing or by electronic message. The seller may not unilaterally change the confirmed terms.

A practical approach is to send the buyer one message summarizing the order and keep it with their reply. Include:

• the seller’s full legal name or the entrepreneur’s surname, first name, and patronymic, business address, contact details, and procedure for submitting a claim;
• the period during which the buyer may accept the offer;
• the stock keeping unit (SKU), model, size, color, configuration, and quantity;
• the price of the goods, delivery, and any agreed additional services, including cash-on-delivery transfer fees, and who pays them;
• the payment method, deadline for handing the parcel to the carrier, and expected delivery time;
• the recipient, phone number, locality, branch, or address;
• warranty terms, the procedure for cancelling the contract, and how to request a return.

If the final delivery cost depends on the packed dimensions or weight, obtain a quote and agree on the total before dispatch. Do not add services the buyer did not agree to after they confirm the order. Seller details and delivery costs must also be made available in accordance with Article 7 of the Law of Ukraine “On Electronic Commerce”.

Verify the address and phone number in private correspondence or during a call. A recommended method is to ask the buyer to confirm the details already entered, especially the locality and branch number. Do not post shipping labels containing personal data in group chats. Give the supplier and carrier only the information needed to fulfil the order, establish a legal basis for processing and sharing it, and limit access to responsible staff. Requirements for the accuracy, scope, retention period, and transfer of data are set out in Articles 6, 11, and 14 of the Law of Ukraine “On Personal Data Protection”.

Record each order status separately

It is recommended that you record the date, responsible employee, and supporting document or message for each event. Payment and delivery may happen in different sequences: with cash on delivery, the goods are handed to the carrier before the seller receives the money.

You can save the consignment note number as soon as it is created, but mark the order “Handed to carrier” only after physical acceptance. If the supplier has printed a label but the parcel is still at the warehouse, telling the buyer it has shipped is premature.

Agree with the supplier on actual dispatch

In your business-to-business contract or agreed procedure, specify who confirms stock and reservations, when the warehouse stops accepting orders, and when it hands them to the carrier. Tie the deadline to the carrier’s acceptance of the parcel. Separately define how delays are reported and who can stop dispatch after an order is cancelled.

For picking, it is recommended that you send the warehouse an item list with product details, quantities, and the order number. Require a check that the goods match the order before packing. For expensive, fragile, or complex kits, agree on photographs of the goods, contents, and packaging. These materials can help establish what happened in a dispute, but the carrier will assess their sufficiency under its own procedure.

Under Part 6 of Article 13 of Law No. 1023-XII, unless the distance contract provides otherwise, the seller must deliver the goods within a reasonable time, but no later than 30 days after receiving the consumer’s consent to enter into the contract. If the goods are unavailable, the seller must immediately notify the consumer that the contract cannot be fulfilled, and must do so no later than that deadline. For day-to-day operations, set a much earlier internal check so you can alert the buyer before the promised delivery period is breached.

Substituting an unavailable item under a standard contract term is permitted subject to the statutory conditions: the buyer was informed before the contract was concluded, the substitute serves the same purpose, is of the same or better quality, and does not cost more. As a practical measure, also agree on the specific substitute with the buyer to avoid disputes about the model, color, or configuration.

What to do about a delay, loss, or error

Assign one store employee to receive requests, gather documents, and tell the buyer what will happen next. The workflow below is a recommendation for organising operations. The appropriate way to meet a request depends on the contract, circumstances, and the consumer rights that apply.

How to document parcel damage

Before dispatch, check the chosen carrier’s procedure for inspecting parcels, documenting damage, and submitting claims: who files the request, which documents are needed, through which channel, and by what deadlines. Check the rules for the specific carrier and service. Do not invent a universal deadline for buyers, such as “report within 24 hours.”

1. Advise the buyer to check the outer packaging, goods, and contents during any inspection the service allows.
2. If they find damage, ask them to involve a carrier employee and complete the document required under the carrier’s rules. For courier delivery, use the procedure for that specific service.
3. Suggest that they keep the packaging, labels, photos of the damage, shipment number, and copies of completed documents.
4. Gather the store’s documents confirming the order, payment, value of the goods, and handover of the parcel. Agree with the supplier who will file the claim with the carrier.
5. Register the buyer’s product claim separately. Do not make the carrier’s compensation decision the sole condition for considering a consumer complaint.

Photos or video can help establish what happened. The absence of an unboxing video does not by itself determine the buyer’s rights: assess the request based on its substance and the applicable provision of law.

Distinguish non-collection, contract cancellation, and product defects

Non-collection describes what happened to the parcel. If the buyer did not visit the branch, that alone does not explain why or replace the need to establish their intent. Contact the buyer and record their response: they are waiting for delivery, want to change the address, or are cancelling the contract. Returning the physical goods may also indicate cancellation of a distance contract under Part 4 of Article 13.

Cancellation of a distance contract may concern goods of satisfactory quality. In that case, check the notice period, confirmation of information, condition of the goods, and statutory exceptions.

A claim about a defect requires applying Article 8: the nature of the defect, warranty period, cause, and the consumer’s chosen remedy all matter. Clarify a message such as “the product is damaged” so you can arrange acceptance and review appropriately.

How to handle cancellation of a distance contract

Check the 14-day and 90-day periods

Part 4 of Article 13 of Law No. 1023-XII gives consumers the right to notify the seller that they are cancelling a distance contract within 14 days of confirmation of the information or receipt of the goods or first delivery. For an order involving goods, keep records of both dates and do not calculate this period only from payment or creation of a shipping label.

If confirmation of the information does not meet Part 3 of Article 13, the period is 90 days from receipt of the information and, for physical goods, from receipt of the goods or first delivery. If the seller corrects the confirmation during that period, the buyer has 14 days from receipt of the corrected confirmation. A general link to the store page is therefore not enough to organise the process properly: keep the specific message the buyer received.

Check the goods’ condition and statutory exceptions

Under Part 7 of Article 13, Parts 5–9 of Article 12 also apply to distance contracts. The buyer must keep the goods in an unchanged condition. However, opening the packaging, inspecting or testing the goods, and any resulting reduction in value do not remove the right to cancel. Nor does destruction, damage, or deterioration that was not the consumer’s fault. A blanket store term such as “unpacked goods are not accepted” therefore does not comply with these rules.

For dropshipping physical goods, the exception for goods made or altered to order is particularly relevant: it applies if the goods cannot be sold to another person or doing so would cause the seller significant financial losses. Supplying a standard item from a partner’s warehouse does not establish that condition. Part 5 of Article 13 also provides exceptions for opened sealed audio or video cassettes or computer software media, and for delivery of periodicals. If you sell such goods, check the applicable exception; the contract may also provide a right to cancel in these cases.

Arrange returns without passing the costs to the buyer

Under Part 5 of Article 12, which applies through Part 7 of Article 13, the consumer tells the seller where the goods can be returned. The contract may provide for postal return of goods that were sent by post. Any costs associated with such a return are borne by the seller; the seller reimburses costs incurred by the buyer.

In response to the buyer’s notice, it is recommended that you provide a request number, a responsible employee’s contact details, and an agreed handover method. Confirm the return recipient and address before the parcel is sent: this may be the supplier’s warehouse, but acceptance must be arranged in advance. Do not ask the buyer to negotiate directly with a warehouse they do not know.

The consumer’s obligation to keep the goods ends 60 days after receiving them. If the seller takes no steps to recover the goods during that period, they become the consumer’s property without any obligation to pay for them. Record the date received, storage location, and steps taken to arrange the return.

Track refunds separately

Part 6 of Article 12 covers a case where the buyer was not given a document, including an electronic one, or confirmation of the information: the buyer notifies the seller that the contract is invalid, and the seller refunds the money and reimburses return costs within 30 days of receiving that notice. This period applies specifically to that basis. Do not list it as a universal “30 days for any return.”

As a practical measure for an ordinary cancellation request, determine the basis for settlement, the amount, and the date of actual payment immediately, then tell the buyer. Part 9 of Article 12, which applies to distance contracts, provides for a penalty of 1% of the goods’ value for each day that a refund is delayed beyond the prescribed period. This penalty applies specifically when a refund is delayed beyond the prescribed period. A parcel delay alone does not establish grounds for charging this refund penalty.

If the purchase was financed through credit from the seller or a third party under the relevant contract, also take account of Part 8 of Article 12: that credit becomes invalid when the contract is cancelled. In practice, separately arrange termination and settlement with the lender.

How to handle claims about defective goods

Under Article 8 of Law No. 1023-XII, if defects are found during the warranty period, a consumer may demand a proportionate price reduction, free repair within a reasonable time, or reimbursement of repair costs. Cancellation of the contract with a refund, or replacement of the goods, is available for significant defects caused by the manufacturer, seller, or service provider, or where the goods are counterfeit, with expert confirmation where required. For unfit food products, Part 8 of Article 8 sets a separate rule: the seller must replace the product with one fit for consumption or refund the amount paid. For other goods, determine the available remedies based on the nature of the defect and the relevant provisions of Article 8.

1. Register the date of the request, a description of the problem, and the buyer’s requested remedy. Obtain the sales receipt or other legally prescribed payment document and, for goods under warranty, the relevant warranty or technical document bearing the sale date, as required by Part 11 of Article 8.
2. Arrange acceptance of the defective goods. The seller must accept them and consider the request. Delivery of bulky goods and goods weighing more than 5 kg, as well as their return to the consumer, are at the expense of the seller, manufacturer, or relevant enterprise.
3. Record the contents and condition on receipt. If a quality inspection is needed, explain how it will be conducted: the consumer has the right to take part in person or through a representative.
4. Apply the deadline that corresponds to the specific remedy. Do not wait for your internal reconciliation with the supplier before starting to fulfil it.

If the goods are available, a valid replacement request must be met immediately; if a quality inspection is needed, it must be met within 14 days or another period agreed by the parties. If the goods are unavailable, the replacement period is two months from the request. Free repairs must be completed within 14 days of presentation of the goods or another period agreed by the parties.

If there are grounds for cancellation under Article 8, the money must be refunded on the day the contract is cancelled; if that is not possible, it must be refunded within an agreed period not exceeding seven days. If the price has increased, calculate the refund at the price in effect when the claim was submitted; if it has decreased, use the purchase price.

A separate penalty under Part 9 of Article 8 is 1% of the goods’ value for each day of delay in repairs beyond the prescribed period and for delay in providing a similar item, as required by law, while repairs are being made. The latter must be provided on written request for goods included in a list established by the government. Do not apply this provision as a general penalty for any late refund.

If the seller proves that the defects resulted from the buyer’s breach of the rules for using or storing the goods, the claims under Article 8 must not be granted. The supplier’s mere assumption that the goods were used incorrectly is not enough to reach that conclusion.

Agree with the supplier on return acceptance and cost reconciliation

It is recommended that you separately specify in the business-to-business contract the return address, recipient, parcel notification procedure, SKU and quantity checks, documents recording the goods’ condition, and timelines for internal settlement. Define who pays for reshipping after a warehouse error, packaging, storage, and the cost of a carrier claim. These agreements govern your relationship with the partner and cannot reduce consumer rights.

Keep a separate reconciliation for each problem order. Record confirmation that the warehouse received the returned goods and actual receipt of funds from the supplier as separate events.

Illustrative delivery and refusal budget

This example uses invented amounts to illustrate cost planning. Use the chosen carrier’s actual rates for your own calculation. Suppose a store plans 100 shipments and covers delivery at 100 Ukrainian hryvnias (UAH) each. It budgets 20 UAH per shipment for packaging. To calculate a reserve, the seller assumes that 8 parcels will go uncollected, with return shipping at 100 UAH each.

• Delivery to buyers: 100 × 100 = 10,000 UAH.
• Packaging: 100 × 20 = 2,000 UAH.
• Return shipping: 8 × 100 = 800 UAH.
• Total: 12,800 UAH, or 128 UAH per original shipment.

The cost of purchasing the goods, payment fees, storage, and possible damage are not included. Use your own confirmed expenses and check the actual non-collection rate after each reconciliation. This calculation does not give you grounds to automatically deduct these amounts from the buyer.

Keep funds available separately for buyer refunds. For example, the hypothetical amount needed to refund five orders at 1,500 UAH each is 7,500 UAH. Set the reserve based on your own sales and settlement timelines with the partner; the reserve helps you meet your obligations but does not change them.

How to record a return of sold goods in Торгсофт (Torgsoft)

In Торгсофт, use “Документ → Повернення” (Document → Return): find the sale by receipt or select the item from the sales list, check the SKU actually sold, and enter the quantity the buyer is returning. For a partial return, change the quantity before completing the document. The period under “Налаштування → Параметри → Загальні → Максимальний термін повернення” (Settings → Parameters → General → Maximum return period) determines the return period available in the software and the initial set of sales shown. If the period has been exceeded, the software displays a notification. Check the settings so you can record the buyer’s lawful claim: a software limitation is not grounds to refuse it.

Separately refund the buyer using the appropriate method for the transaction—cash, bank transfer, or payment service—and reconcile the confirmation. The “Повернути гроші” (Refund money) and “Гроші повернено” (Money refunded) actions in the accounting record do not replace the actual cash payment or transfer. If the transaction requires fiscal recording, ensure it is handled through a configured software registrar of settlement transactions (PRRO) or another applicable registrar; the accounting document alone does not confirm this. Track warehouse acceptance, payment to the buyer, and the carrier claim separately.

What to check at the end of each workday

A recommended daily check is to review orders without a reservation, paid orders not yet physically dispatched, delayed parcels, and returns without a completed settlement. Every open case should have a responsible employee, a next action, and a date for updating the buyer. Close requests after the agreed resolution has been completed and the documents checked.

The provisions of Law No. 1023-XII cited above apply to the consumer relationships described here. Law No. 3153-IX has a deferred effective date linked to the termination or lifting of martial law in Ukraine. Before changing your store’s terms, check which law is in force so that the timelines and procedures for dealing with buyers comply with the applicable rules.