Articles on: Synctrack - Returns & Exchanges

How to remove the label generation fee?

Overview

When processing a return request, the system automatically calculates a label generation fee, which represents the cost of creating a prepaid return shipping label for your customer.
If you prefer to cover the shipping cost yourself instead of charging the customer, you can easily remove this fee by two following ways:

Choose "Merchant pays" in Return shipping payment
Remove label generation fee when issuing a Refund

Choose "Merchant pays" in Return shipping payment

Go to Settings -> Shipping & Delivery -> Return shipping method.
In the Return shipping payment section at the top, select Merchant pays.
Save. Your store now covers the label cost: shoppers see no label fee on the return page and their refund is not reduced.

Note: this replaces the old "Label generation fee" toggle in Settings -> Fees. If you previously disabled that toggle, your store was migrated to "Merchant pays" automatically — no action needed.

Remove label generation fee when issuing a Refund

After Approving the request and clicking Refund, locate the Label generation fee the refund request page.
Uncheck the box next to Label generation fee (Original price: $X.XX) to exclude this fee from the refund amount.

=> By unchecking this option, the fee will not be charged to your customer, and your business will cover the label cost instead.

Removing the label generation fee ensures a more customer-friendly return experience, especially in cases where you want to offer free returns as part of your store policy.

Who can use this feature?

Available on Starter Plan

Updated on: 06/07/2026

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