This article explains how to configure return shipping — including label generation, who pays for labels, return destinations, and maximum sponsored amounts.
Navigate to Returns > Settings and find the Return Shipping Settings and Label Fees sections.
Return Label Provider
Choose how return shipping labels are handled:
ShipSidekick (Automatic Labels)
When set to Ship Sidekick, Onward automatically generates a prepaid return shipping label each time you approve a return. The label is emailed to the customer with instructions.
Requirements:
A connected ShipSidekick account
Sufficient balance in your ShipSidekick account
What customers get:
A prepaid shipping label (downloadable as PDF)
A QR code they can show at carrier drop-off locations (no printer needed)
Automatic shipment tracking — both you and the customer can see when the package is in transit and delivered
None (Manual)
When set to None (Manual), no automatic label is generated when you approve a return. Use this if:
You want to provide your own labels
You use a different shipping provider
You handle international returns differently
The customer arranges their own shipping
In manual mode:
The customer is told their return has been submitted and that they'll receive instructions after approval.
You can optionally add a tracking number to the return from the merchant dashboard.
Shipping-based automations (auto-process on delivery, etc.) won't run on manual tracking numbers.
Return Destination
Your return destination is the address where customers ship their returned items.
Primary Returns Address
Set your main returns address under Return destination. This address is:
Used as the destination on return shipping labels
Displayed to customers in their return instructions
Conditional Return Destinations
If you have multiple warehouses or return locations, you can create conditional policies to route returns to different addresses based on rules like:
Product Tags — Route electronics to one warehouse and clothing to another.
Customer Region — Route international returns to a different address.
Order Tags — Route specific order types to a dedicated facility.
To set up a conditional destination:
Click Add a policy under the return destination section.
Set your rule conditions.
Select the destination address for matching returns.
Save and set the priority order.
Label Fees
Label Sponsor:
Choose who pays for the return shipping label by default:
Customer — The customer pays for the label at the time of return submission (via Stripe or deducted from their resolution).
Merchant — You cover the shipping cost. The customer doesn't pay anything for the label.
Maximum Sponsored Amount
When labels are customer-paid, you can optionally set a maximum sponsored amount — the most you'll cover for a return shipping label.
Leave blank for unlimited (customer pays the full label cost).
Enter an amount to cap what the customer is charged. If the label costs less than the cap, the customer pays the full amount. If the label costs more, the customer pays only up to the cap, and the merchant covers the rest.
Example: If you set a $10 maximum sponsored amount and the label costs $8, the customer pays $8. If the label costs $15, the customer pays $10 and you cover the remaining $5.
Note: The maximum sponsored amount field is only available when the label sponsor is set to Customer.
Conditional Label Sponsorship
Create policies to apply different label sponsorship rules based on conditions. For example:
Merchant-paid labels for orders with the "VIP" customer tag
Customer-paid labels for international returns
Merchant-paid labels for defective items (product tag "warranty")
Returns App Processing Fee
The Onward processing fee is a per-return fee charged by Onward for using the returns platform. The fee sponsor determines who pays this fee:
Same as label sponsor — Whoever pays for the label also pays the processing fee.
Customer — The customer pays the fee.
Merchant — You pay the fee.
Conditional policies are available to apply different fee sponsor rules for specific scenarios.
Note: Processing fee settings are managed by the Onward team and may not be editable for all merchants.
How Label Costs Work
Scenario | Customer Experience | Merchant Cost |
Merchant-paid labels | Free return shipping | Full label cost |
Customer-paid, deduct from resolution | No upfront payment; fee deducted from refund/credit | None |
Customer-paid, charge via Stripe | Pays via credit card at submission | None |
Customer-paid with max sponsored amount | Pays up to the cap; merchant covers the rest | Difference above cap |