Returns & Exchanges: A Practical Guide for Canadian Online Sellers

returns and exchanges

Let’s be honest before we dig deeper – nobody loves dealing with returns. Not you, not your customers. But here’s the thing: in Canada, a clear and simple return process can make a world of difference.

Canadian shoppers are cautious. They know shipping isn’t cheap, delivery times can drag, and cross-border orders sometimes mean surprise (read unwanted) fees. That’s why a transparent returns policy builds the foundation for a hassle-free holiday season.

Why Returns Matter More Than You Think

Buying online has become the new normal and so has checking the return policy before buying. Think about the last time you hesitated to buy from a new store online. Chances are, one of the first things you checked was the return policy. 

When your policy feels fair, people are more confident to buy. And if returning something isn’t a nightmare, they’ll likely come back to shop again.

What Customers Usually Return in Canada

Returns aren’t random. The same reasons pop up over and over:

  • The size or fit isn’t right (especially clothing and shoes).
  • The product looks different than it did online. 
  • Something broke in transit (this is a common issue during the holidays).
  • Post-holiday “change of heart”.

Make sure your return policy has these elements.

How to Write a Return Policy That Works

A good policy balances customer expectations with what makes sense for your business. Here are a few things Canadian sellers usually include:

  • Return window: 30 days is standard, but some brands do go 45 or even 60.
  • Condition: unworn, unused, tags attached, original packaging.
  • Exceptions: final sale items, intimate wear, or personal care products.
  • Cross-border: if you ship to the U.S. or beyond, explain who covers duties/taxes when sending items back.

Most importantly, don’t hide your policy. Put it where customers can find it easily.

Gift Recipient Returns & Exchanges

When gifts are exchanged, there are more returns. Give your customers all the information before they make the purchase. 

  • Explain how gift returns work. Clarify if they need the order number, or is a gift receipt enough?
  • Clarify refund vs. store credit

A Simple Step-by-Step for Returns

The smoother you make this, the fewer emails you’ll get from frustrated buyers. Here’s what a  typical process looks like:

  1. Customer checks the policy: Is it still within the return window? Is the item eligible?
  2. They request a return: through your site, a self-service portal, or even just by email.
  3. They ship it back: prepaid Canada Post labels are popular because customers can drop off at almost any post office. Use this guide to choose which label printer can help you with return labels. 
  4. Refund or credit goes through: most sellers process within 5–10 business days.

Holiday Shipping & Return Deadlines

  • List cut-off dates for Canada Post, UPS, FedEx, Purolator and any other carrier you use. Here is a detailed guide on holiday shipping deadlines.
  • Add note: “Returns shipped after Dec 28 may take longer to process due to post-holiday volume.”

Now that De Minimis is suspended, sale and returns from the US is going to be trickier. 

Exchanges: Keeping the Sale

Refunds cost you money. Exchanges, on the other hand, often keep the customer happy while letting you keep the sale. If you can, offer free size or colour swaps.

Some stores even send the replacement right away, before the original comes back, it’s riskier but creates a wonderful customer experience.

Returns on Holiday-Themed & Clearance Items

  • State clearly if holiday merchandise (decor, ugly Christmas sweaters) can be returned in January. 
  • Clarify if Black Friday/Boxing Day deals are final sale.

A Few Tips That Work Well in Canada

  • Offer free returns above a certain order value (like $100).
  • Sellers keep in mind that January is when return spikes.
  • Stock on prepaid labels, prepare extra support staff, and have a dedicated holiday FAQ.
  • Selling in Québec? make sure your return policy is available in French as well as English.
  • Be upfront about return shipping fees. Honestly.
  • Automate where you can.
  • Be hyper-specific: “Orders placed between Nov 1 and Dec 31 can be returned until Jan 15, 2026.”
  • Mention if holiday bundles or Boxing Day deals are excluded.

Five brands doing it right

  1. Lululemon:
  • Mentions return period
  • Talks about what isn’t returnable
  • Talks clearly about in-store returns/exchanges
  1. Cheekbone Beauty:
  • Talks about sale items
  • Talks about limited edition items
  • Talks about shipping charges
  1. Simons
  • Talks about holiday season returns
  • Mentions who enjoys free returns
  • Upfront about return surcharges
  1. Levi’s Canada
  • Clear about returns being free.
  • Talks about what happens after a return is placed.
  • Talks about days to take after return
  1. Sport Chek
  • Upfront about merchandise credit card.
  • Talks about the return process clearly.
  • Talks about what happens after the return date is missed.

Having a smart return policy is a great move. But relying only on national carriers this holiday season is risky. Read our guide on why skincare brands can’t depend on national carriers alone this holiday season

Quick FAQs

  1. Can sale items be returned?

Yes, if you allow it, but many sellers stick to store credit.

2. Do I have to cover return shipping?

Not always. Some sellers deduct it from the refund. Just make it clear.

3. How long will my refund take?

Usually 5–10 business days in Canada, depending on the payment provider.

4. What about remote provinces and territories?

Be clear if shipping fees differ for places like Yukon or Nunavut.

5. Can I return Boxing Day purchases?

If the seller has been clear, yes.

6. Do Black Friday orders qualify for extended returns?

No, they do not.

7. What if my gift arrives late due to carrier delays?

There is nothing you can do but prepare in advance.

8. Can online holiday purchases be exchanged in-store?

It depends on the brand from which the purchase has been made.

Wrapping It Up 

Returns and exchanges don’t have to be a headache. A policy that’s clear, fair, and easy to follow can actually set your store apart in Canada’s nerve-wracking eCommerce market.

So, if you haven’t revisited your return policy in a while, now’s a good time. Make it simple. Make it fair. Give your customers the confidence to hit “buy” without second-guessing. You got this. 

Priyanka
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