How do I handle an Etsy refund request when tracking shows the package is still moving?

Hi! If tracking is actively updating and the package is still in transit, the best move is usually to respond quickly, reassure the buyer, and set a clear “next step + timeline”—but don’t refund immediately unless you’re comfortable potentially losing both the item and the money.

Here’s a solid way to handle it on Etsy without escalating things (and without inviting a bad review):

1) Reply fast, empathetically, and point to the tracking
Let them know you believe them, confirm what you see on tracking, and that you’ll stay on it. Buyers mainly want to feel like you’re not ignoring them.

Message you can copy/paste:
“Thanks so much for reaching out—I'm sorry it hasn’t arrived yet. I checked the tracking and it’s still in transit with a recent update, so it looks like it’s on the way. I’ll keep an eye on it with you. If it hasn’t been delivered by [DATE], I’ll step in with the next option (replacement or refund, depending on what you prefer). In the meantime, please let me know if anything changes on your end.”

2) Give a specific deadline (don’t keep it open-ended)
Instead of “it should arrive soon,” pick a clear date. A good, seller-safe rule of thumb:

• If it’s still moving, wait.
• If it stops updating for several days (or looks “stuck”), then you escalate (carrier inquiry / replacement / refund).

You can base the date on their estimated delivery window shown on the Etsy order + a small buffer.

3) Open a carrier inquiry (and tell the buyer you did)
This signals action and often shakes loose a delayed shipment. Even if you can’t file a formal claim yet, you can still contact the carrier or start whatever “help/find my package” process they offer.

4) Replacement vs. refund: choose the least risky option

• If it’s one-of-a-kind (OOAK) / can’t be remade: wait a bit longer while tracking is active; then refund if it’s clearly lost.
• If it’s easy to remake: offer a replacement only if tracking stalls or a reasonable deadline passes.
• Refund now is usually the last resort, because if it delivers tomorrow, you’re out the item and the payment.

A clean policy you can state to the buyer is:

• “If it’s not delivered by [DATE], I can send a replacement or issue a refund—your choice.”

5) Reduce review risk with service, not pressure
Don’t mention reviews at all. Instead:

• Keep messages calm and confident.
• Send one proactive update (“Still watching this—latest scan shows ___”).
• If it’s delayed beyond the estimated window, you can offer a small courtesy (like a coupon on a future order) without making it conditional on anything.

One important Etsy note (so you don’t panic):
If the order qualifies under Etsy’s Purchase Protection (commonly things like shipped on time with valid tracking, and the order value within their covered limit), Etsy may cover a “not received”/late delivery refund through a case instead of it coming out of your funds. So your best protection is: keep everything documented in Etsy Messages and make sure tracking is attached to the Etsy order.

If you tell me what the tracking status currently says (e.g., “Arrived at facility,” “Out for delivery,” “In transit”), and whether you’re past the Etsy estimated delivery date, I can suggest the exact deadline language to use.