DHL Return Labels for Merchants

The DHL return label is the central link between customer returns and a professional returns process in the warehouse. For merchants, the label strategy determines support effort, return costs, tracking quality and the speed of refunds. Merchants who plan return labels poorly pay twice: once for unnecessary postage costs on unused enclosed labels, and again for lost parcels and delayed goods receipt due to incorrect addresses.

This guide is aimed at online merchants using DHL as their returns carrier – whether in their own warehouse, with a fulfillment partner or in a hybrid model. It explains label models, technical integration, cost logic and best practices for day-to-day operations.

What is a DHL return label?

A return label is a prepaid shipping label with reversed logistics direction: the customer is the sender, the merchant warehouse or 3PL location is the recipient. Unlike the outbound label, it contains its own return tracking number that can be tracked separately in DHL tracking.

Typical elements on the DHL return label:

• Recipient address (returns warehouse with routing code)
• Sender address or generic drop-off information
• Barcode and tracking number for return tracking
• DHL product code (determines tariff and drop-off options)
• Reference fields such as RMA number or order number

Label models: enclosed vs. on-demand

Merchants face a fundamental decision: do they include a prepaid return label with every order, or do they generate labels only upon actual return registration?

When to use which model?

1. Enclosed label: Return rate over 30 percent, uniform parcel sizes, few partial returns, premium customer experience as priority
2. On-demand label: Return rate under 20 percent, many partial returns, frequent warehouse location changes, focus on reducing return costs
3. Hybrid: Enclosed label for standard items, on-demand for bulky goods, hazardous goods or international shipments

Creation methods for merchants

DHL return labels can be created in four ways. The choice depends on shipment volume, IT maturity and level of integration.

1. DHL Business Customer Portal (BCP)

Manual creation in the DHL Business Customer Portal is suitable for low return volumes or as a fallback. Support staff create labels individually or via CSV import. Disadvantage: no self-service for customers, high personnel effort.

2. Returns portal with DHL integration

The professional model for growing shops: customers register returns in the portal, the system automatically generates a DHL label. Details on portal architecture and UX can be found in the article Returns portal and labels.

3. API integration (DHL Parcel DE Returns)

Via the DHL interface, shop, ERP or shipping software can programmatically generate return labels. Advantages:

• Automatic link to order number and RMA
• PDF label or QR code for parcel locker/parcel shop
• Webhook-based return tracking
• Scalability at high return volumes

4. Label via fulfillment partner

With outsourced fulfillment, the partner creates labels via their WMS or provides an API to the merchant. The recipient address is always the partner location – the merchant must ensure that shop and portal use the same address.

DHL return label on-demand – process flow

QR code vs. PDF label

DHL increasingly offers QR code returns: the customer shows the code in the DHL app or as a printout at the parcel shop, and the staff prints the label on site. This saves the merchant printing costs in outbound and avoids illegible printouts.

Costs and billing

Return label costs consist of several components. Merchants should calculate these transparently and factor them into product margins.

1. Postage per return label – depending on weight, size and DHL tariff contract
2. IT costs – portal, API calls, returns SaaS fees
3. Enclosed label waste – unused labels in outbound parcels
4. Manual creation – support time for BCP labels without portal
5. Return processing in warehouse – goods receipt, inspection, restocking

Strategies for cost optimization:

• On-demand instead of enclosed label at low return rates
• QR code instead of prepaid enclosed label
• Negotiate volume discounts in DHL business customer contract
• Control return fees or free returns strategically by product category

Technical requirements for label creation

A clean DHL integration avoids the most common operational errors. These mandatory fields must be correctly filled for every label:

Mandatory data for the DHL API

1. billingNumber – DHL billing number from the business customer contract
2. receiverId – internal recipient ID for the returns warehouse
3. Recipient address – name, street, postal code, city, country (ISO code)
4. Reference – RMA number or order number for matching in WMS
5. Weight and size – default value or customer input depending on product

Tracking and status feedback

After label creation, the shop system must update the return status:

• Label created – customer can drop off parcel
• In transit – carrier event from DHL tracking
• Delivered to warehouse – goods receipt at merchant or 3PL
• Inspected and booked – refund triggered

More on the operational process after delivery: Returns processing with DHL.

Workflow: label to refund

If there are discrepancies between WMS and shop system, a feedback loop is required for clarification before the refund is triggered.

Checklist: implementing DHL return labels

These points should be completed before go-live:

• Analyse return rate and define label model (enclosed vs. on-demand)
• Sign DHL business customer contract with returns product
• Register return address(es) in BCP and API
• Enter billingNumber and receiverId in shop, ERP and shipping software
• Test returns portal or API integration (staging environment)
• Verify PDF and QR code output in customer portal
• Configure tracking events and webhooks through to goods receipt
• Brief support team and warehouse on new label format

Avoiding common mistakes

1. Incorrect recipient address – most common cause of lost returns; occurs especially after 3PL change
2. Label without RMA reference – goods receipt cannot assign shipment, refund delayed
3. Enclosed label with declining return rate – unnecessary postage costs over months
4. No return tracking in shop – customer contacts support asking if parcel has arrived
5. Different addresses – portal shows address A, API sends address B
6. Weight limits ignored – bulky goods returns with standard label fail at drop-off

Frequently asked questions (FAQ)

• Who pays the postage – merchant or customer?
• Can I use the same label for outbound and return?
• How long is an on-demand label valid?
• Does the return label work internationally?
• What happens if the customer loses the label?

Return labels with 3PL and multi-location

Merchants working with a fulfillment partner often need multiple receiverIds – one recipient profile per warehouse location. The returns portal must generate the correct label based on the original shipping address or item warehouse location.

For multi-location setups:

• Each location its own DHL receiverId
• Routing logic in shop or middleware
• Uniform RMA numbers across all locations
• Central reporting despite decentralised goods receipt

Legal and communication aspects

The return label is part of customer communication and must align with your return policy:

• Clearly communicate return deadline in portal
• Display cost allocation (free vs. customer pays) before label download
• Privacy notice when transmitting address to DHL
• Transparent presentation of right of withdrawal and exceptions

Conclusion

The DHL return label is more than a sticker – it is the starting point of reverse logistics. Merchants who implement on-demand labels with clean API integration, correct recipient address and return tracking through to goods receipt reduce costs, relieve support and accelerate refunds. The investment in portal and interface pays for itself with just a few hundred returns per month.

Related topics

• Returns portal and labels
• Returns to fulfillment partner
• Returns processing with DHL
• Setting up the DHL interface
• Reducing return costs

Last updated: July 7, 2026