Returns Processing with DHL

Returns processing is no longer a side issue for online retailers – it is a central part of the customer experience. Retailers who organize returns professionally with DHL reduce costs, speed up restocking, and strengthen customer loyalty. This guide shows how to structure and scale the entire returns process – from registration to booking in your inventory management system.

Why Returns Processing with DHL Is Strategically Important

In German e-commerce, the average return rate varies between 15 and 40 percent depending on the industry. Fashion and footwear lead the statistics, while electronics and household goods follow with significantly lower rates. Regardless of industry, customers today expect a smooth returns experience: easy registration, free or low-cost return labels, transparent tracking, and fast refunds.

As the market leader in parcel shipping, DHL offers broad infrastructure for returns: over 35,000 Packstations, around 5,000 parcel shops, and a nationwide branch network. For retailers, this means customers can drop off returns conveniently without having to visit a post office counter. At the same time, you benefit from standardized interfaces that integrate with shop systems, WMS, and ERP.

The Returns Process with DHL at a Glance

Professional returns processing follows a clearly defined workflow. Each step must be traceable for both the customer and internally in the warehouse.

Returns Processing with DHL – 7 Steps

Step 1: Return Registration by the Customer

The process begins when the customer registers a return. This typically happens via a returns portal in the shop, via an email link, or through customer service. It is important that the customer specifies return reasons and selects the items they wish to send back in this step.

Step 2: Create and Provide Return Label

After registration, a DHL return label is automatically generated. This can be provided as a PDF for printing, as a QR code for the Packstation, or as a prepaid label in the package (included return label). Details on the various label options can be found in the article on Returns Portal and Labels.

Steps 3 to 4: Shipping and Transport by DHL

The customer brings the parcel to a Packstation, drops it off at a parcel shop, or places it in the mailbox (for Warenpost returns). DHL scans the shipment, and the status "Return in transit" becomes visible in tracking – for you as the retailer and optionally for the customer.

Steps 5 to 7: Goods Receipt, Inspection, and Completion

In the warehouse, the return is received, matched to order line items, and inspected. A refund or exchange then follows, and the goods are restocked, sold as B-stock, or disposed of depending on their condition.

Returns Models with DHL Compared

Not every returns solution fits every business model. Choosing the right model significantly affects costs, customer experience, and internal effort.

IT Integration and Automation

Manual returns processing only works with very low order volumes. From around 20 returns per day, technical integration with DHL via APIs or shipping software becomes worthwhile.

Interfaces and Integration

Integration typically takes place via the DHL Business Customer Portal or directly via the DHL API. Important functions that should be automated:

1. Return label generation – Label is automatically created upon return registration and sent by email
2. Tracking import – Status changes from DHL are transferred to the shop system in real time
3. Goods receipt booking – Scan in the warehouse automatically triggers refund or credit
4. Inventory update – Restockable items are immediately made available in the WMS

When using Fulfillment by DHL, the logistics partner handles the entire returns process. Integration and interfaces are particularly relevant here, as return status and inventory data must be synchronized bidirectionally.

IT Integration Returns – Workflow

WMS and Returns Management

A Warehouse Management System (WMS) is essential for internal returns processing. During goods receipt of returns, each line item must be scanned individually, inspected, and assigned a condition status:

• A-stock – Original packaging, unused, immediately restockable
• B-stock – Minor signs of use, sold as B-stock or via outlet channel
• C-stock / scrap – Damaged or unsellable, disposal or recycling

Correct storage of return goods and B-stock directly affects the profitability of your returns management.

Costs of Returns Processing with DHL

Returns cause direct and indirect costs. Direct costs include transport, packaging materials, and personnel for inspection and restocking. Indirect costs include depreciation, tied-up capital, and customer service effort.

Checklist: Setting Up Returns Processing with DHL

Use this checklist to systematically set up or optimize your returns processes:

Preparation and Strategy

• Define return policies (deadlines, condition, cost coverage)
• Analyze and document return rate per category
• Choose returns model (included return label vs. online portal)
• Calculate cost per return and set budget

Technical Setup

• Sign DHL business customer contract with returns option
• Configure API integration or shipping software
• Implement returns portal in shop
• Set up WMS for return goods receipt
• Activate tracking notifications for customers

Operational Processes

• Set up goods receipt zone for returns in warehouse
• Define inspection criteria per product category
• Train staff for return inspection
• Automate refund process (payment provider integration)
• Define B-stock process and outlet channel

Monitoring and Optimization

• Define KPIs (return rate, processing time, cost per return)
• Set up monthly returns reporting
• Systematically evaluate return reasons
• Review and adjust process annually

KPIs for Successful Returns Management

What is not measured cannot be improved. Track these metrics for your DHL returns processing:

1. Return rate – Share of returned items among sold items (target: industry-dependent, monitor trend)
2. Time to Refund – Time from return registration to credit (target: under 5 business days)
3. Return processing time – Time from goods receipt to completion in system (target: under 24 hours)
4. A-stock rate – Share of immediately restockable returns (target: over 70%)
5. Cost per return – Total costs including postage, personnel, and depreciation (target: under 20 EUR)
6. Top 3 return reasons – Most frequent reasons for targeted product improvement

Common Mistakes in Returns Processing

Even experienced retailers make typical mistakes during setup that can be avoided:

Mistake 1: No clear assignment of return to order
Without a barcode or unique return number in the parcel, assignment in the warehouse takes unnecessarily long. Solution: Every return receives a unique return ID that appears on the label and in the packing slip inside the parcel.

Mistake 2: Refund before goods receipt
Customer-friendly, but risky. Refunds should only occur after inspection or at the latest after scanning in the warehouse – except for trusted regular customers with a defined exception rule.

Mistake 3: Missing status communication
Customers who hear nothing about their return for weeks leave negative reviews. Automatic emails at every status change (label created, in transit, received, refunded) are mandatory.

Mistake 4: Return labels without tracking
Without shipment tracking, customers and retailers cannot trace the whereabouts of the goods. Use only trackable DHL return products.

Scaling Returns Processing

As order volume grows, returns logistics must scale too. From around 100 returns per day, the following measures make sense:

• Dedicated returns station in the warehouse instead of shared goods receipt counter
• Batch processing – Returns are collected and inspected in fixed time windows
• Outsourcing to Fulfillment by DHL or a 3PL partner
• Automatic refund upon clear A-stock scan without manual approval

Frequently Asked Questions about Returns Processing with DHL

Who bears return costs?
Depends on return policy; legally the retailer for withdrawal/cancellation.

How long does a DHL return take?
Domestic typically 2–4 business days until goods receipt.

Can the customer return without a printer?
Yes, via Packstation QR code.

What happens with unknown returns?
Quarantine process, customer service clarification.

Is Fulfillment by DHL worthwhile for returns?
Often economical from around 50 returns/day.

Conclusion

Professional returns processing with DHL is not a cost factor to accept, but a strategic lever for customer satisfaction and operational efficiency. Retailers who clearly define processes, integrate technology early, and consistently measure KPIs turn returns from a problem into a competitive advantage. Start with a lean online returns portal, automate step by step, and scale with your shop's growth.

Related Topics

• DHL Returns and Send-Backs – Overview
• Returns Portal and Labels
• Return Label and Send-Back – Glossary
• Goods Receipt Returns
• DHL Return Label for Retailers

Last updated: July 6, 2026