Partial Refunds

Summary

What options do sellers have to issue partial refunds on TikTok Shop, and how can they automate this process?

  • Sellers can automate partial refund rules via Seller Center’s Preference settings, allowing customers to choose partial refunds without returning items. Rules can be customized by product category, item price ($10-$100), return reason, and refund percentage (10%-50%, $5-$50).
  • Automatic partial refunds take precedence over seller-set rules if platform-mandated returnless refunds apply. Sellers must manage rules carefully as appeals are not accepted for errors in rule creation.

How can sellers set up and manage partial refund rules in the Seller Center?

  • In Seller Center, navigate to Orders > Return settings > Partial Refund tab, then click Set Up to add or edit rules. Sellers define rule names, applicable product categories, return reasons, item price limits, refund percentages, and validity dates before saving.
  • Multiple rules can be created and edited to align with different business needs, ensuring flexible refund management.

What is the process for issuing a partial refund after receiving a returned item with damage or missing parts?

  • Sellers inspect returned items and can issue partial refunds based on damage severity or missing quantity. Refund deductions range from 10%-50%, depending on damage level and market (e.g., US market allows 0%-50%).
  • To issue, sellers go to Seller Center > Orders > Manage Returns, select Respond, reject the return, provide item condition details, enter refund amount, upload evidence, and submit for review.

What are the key conditions and limitations sellers must consider when using the partial refund feature?

  • Partial refunds apply only to returnable categories and items priced between $10 and $100. Refunds must be at least $5 and no more than $50 or 50% of the item price.
  • Sellers are responsible for compliance and refund costs; misuse of the feature can lead to disabled access. Appeals are not accepted for automatic refunds caused by seller errors.

What implications does the partial refund feature have for sellers on TikTok Shop?

  • Automating partial refunds can improve customer satisfaction by offering flexible resolutions without returns, reducing logistics costs.
  • However, sellers must carefully configure rules to avoid financial losses and ensure compliance, as TikTok Shop monitors misuse and enforces penalties.
Sellers can leverage the capabilities available in Seller Center to issue partial refunds aligned with their business goals. There are several solutions available, as detailed below.

1. Automate partial refund rules

Sellers can set up automatic rules for partial refunds in the Seller Center using the Preference settings. These rules enable customers to choose a partial refund as a resolution during the return request process, allowing them to receive a partial refund without returning the item. Sellers are responsible for covering the refund costs based on the conditions they specify.
When setting up their rules, sellers can define preferences for the following criteria:
  • Product Category: Only returnable categories are eligible.
  • Item Price: Only items priced between $10 and $100 are eligible for this feature.
  • Return Reason:
    • Wrong item received
    • Damaged item or packaging
    • Defective item
    • Missing or broken parts
    • Item does not match description
  • Refund Range:
    • The refund percentage must be at least 10% of the item's paid price, and the partial refund must be at least $5. If the calculated amount is less than $5, it will default to a $5 refund.
    • The maximum refund percentage cannot exceed 50%, and the partial refund must be no greater than $50. If it exceeds $50, it will default to $50.
  • Strategy Precedence:
    • If a returnless refund is applicable, whether it’s platform-mandated or set by the seller under Seller-Preferred Refund Without Return, the returnless refund takes precedence over partial refund.
When a customer requests a partial refund, TikTok Shop will automatically process it without requiring a return. If a seller wishes to appeal an automatic refund, they can do so through the Contact Us page in Seller Center.
  • Sellers are responsible for the rules they set for automatic Partial Refund. Appeals will not be accepted for automatic refunds resulting from seller errors in rule creation or modification.
  • Sellers using this automatic process do so at their own risk and must ensure compliance with all applicable laws. We reserve the right to disable a seller's access to the partial refund function if we determine that the seller has misused the function.

Accessing Partial Refund Feature

You can manage your partial refund settings in the Seller Center.
To find these settings:
  1. In the Seller Center, go to Orders and click on the Return settings page.
  2. Navigate to the Partial Refund tab.
  3. Click the Set Up button.
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Setting Partial Refund Rules

  1. Once you click the Set Up button, you will see the page below.
  2. On this page, click Add new rule to create rules based on your business needs.
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Defining Variables for a Rule

  1. Once you click the Add new rule button, the page below will open.
  2. Enter a name in the Resolution name field for this rule set.
  3. Select the relevant Product categories the rule will apply to.
  4. Choose the applicable reasons for the rule:
    • Wrong Item Received
    • Damaged Item or Packaging
    • Defective Item
    • Missing or Broken Parts
    • Item Does Not Match Description
  5. In the Single Item Price field, set a price limit for which the rule applies.
  6. In the Percentage field, specify the percentage of the item price to be offered as a partial refund.
  7. Set the validity date for the rule.
  8. Click Save to activate the rule.
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Adding More Rules

  1. After setting up your first rule, you’ll see it listed under the feature.
  2. Click the Edit button symbol on the right of the rule.
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  3. Click on the ... symbol next to the rule and then select Edit to view and edit existing rules, as well as add new rules.
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  4. To create additional rules, follow the same steps above.

2. Partial Refund After Return (Based on Damage Level)

The following walks sellers through issuing a partial refund after receiving a returned item that is damaged, missing components, or has quantity discrepancies.
Key Context
  • Partial refund is only allowed after the returned item has been received and inspected.
  • This feature applies to buyer fault returns and does not apply if a refund was triggered at drop-off.
  • Non-sellable items: Refund deduction is possible between 10–50% of the item price, depending on the severity of damage.
  • US market: Refund deduction may range from 0–50%.
Damage Levels and Definitions
Damage Level
Definition
Applicable Rejection Reasons
Sellable
Minor Damage
Minor signs of use, missing labels or tags, but the item remains functional
Product is damaged; Product is used and not in original condition
Yes
Severe Damage
Heavily used, missing essential components, or unsuitable for resale
Product is damaged; Product is used and not in original condition
No
Less Quantity
Missing products or product parts
Missing products and/or product parts
Yes

Seller Center: Accessing Partial Refund for Damaged or Missing Products

  1. Log into Seller Center, navigate to Orders, and select Manage Returns. From here, select Respond on the appropriate order.
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  2. To continue with initiating a partial refund, select Reject.
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  3. You will be prompted to answer questions, such as if you received the package, what condition the returned items are in, and the quantity of items missing (if applicable).
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  4. Proceed by selecting Issue partial refund.
    1. You will be prompted to enter the partial refund amount, upload evidence, and leave additional comments for review.
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  5. Once you have entered all required information, select Respond.